CBN warns banks against misleading customers on domiciliary account

Ifeanyi Onuba, Abuja

The Central Bank of Nigeria has cautioned  Deposit Money Banks against misleading their customers on transactions carried out through domiciliary accounts in the country.

The apex bank gave the warning in a letter dated February 24, 2020, and posted on its website on Monday night.

The letter signed by the apex bank’s Director, Trade and Exchange Department, Dr. Ozoemena Nnaji was addressed to all banks.

The letter reads in part, “Following different interpretations of operations of domiciliary accounts. It has become imperative to clarify the operations of domiciliary accounts as contained in the CBN Foreign Exchange Manual Memorandum 25 provisions under reference.

The letter signed by the apex bank’s Director, Trade and Exchange Department, Dr. Ozoemena Nnaji was addressed to all banks.

The letter reads in part, “Following different interpretations of operations of domiciliary accounts. It has become imperative to clarify the operations of domiciliary accounts as contained in the CBN Foreign Exchange Manual Memorandum 25 provisions under reference.

He said, “The bank has not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks.

“Only electronic fund transfers into domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.”

Okorafor therefore urged stakeholders and other interested parties to always endeavour to seek clarification on issues and avoid speculative tendencies which were detrimental to the financial system.

CBN headquarters, Abuja