By Anthony Isaac
The Central Bank of Nigeria (CBN) has cleared the air on the operation of domiciliary accounts, saying it has not prohibited the acceptance of foreign currency cash deposits by banks.
The bank’s Director, Corporate Communications, Mr Issac Okorafor made the clarification while speaking to newsmen in Abuja on Sunday.
He explained: “The Bank has not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks (DBN). 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into Domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.”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 are detrimental to the financial system.
A domiciliary account is a type of current account that allows you to fund it with foreign currencies such as dollars, pounds or euros and enables you to do foreign transactions on that account.
The account could be used to transfer money to another country or receive foreign currency from another country.
Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC), says it has liquidated 427 financial institutions as at December 2019.
The Assistant Director, Insurance and Surveillance Department, NDIC, Mr John Abiodun, said this at the 2020 Finance Correspondents Association of Nigeria (FICAN) Annual General Meeting (AGM) and Forum in Abuja.
Abiodun explained that the liquidated institutions comprised 51 Deposit Money Banks (DMBs), 325 Micro Finance Banks (MFBs) and 51 Primary Mortgage Banks (PMBs).
He said through efficient and diligent liquidation activities, the corporation had successfully paid in full the deposits of the customers of 18 DMBs both insured and unsured ones.
The assistant director said payment to depositors of Fortune International Bank, Triumph Bank and Peak Merchant Bank was put on hold as at end of 2019 due to litigation challenging the revocation of their operating licenses.
“You will recall that the Central Bank of Nigeria (CBN) revoked the operating license of the troubled Skye bank and NDIC resolved the problem of the defunct bank by using Bridge Bank Mechanism.
“It was done through the establishment of Polaris Bank and ensured that depositors of defunct Skye bank continued to operate their accounts with the new bank,” he said.
