Connect with us

Finance

Cheques Can Now be Paid into Savings Accounts

Published

on

interest

The Central Bank of Nigeria on Tuesday released four new guidelines for the banking industry, top of which was an approval for bank customers to make cheque deposits into their savings accounts.

Prior to this development, bank customers could only make cheque deposits into their current accounts.

The new guidelines were contained in a circular posted on the CBN website and signed by the Director, Banking and Payment System, Mr. Dipo Fatokun.

The circular, which was directed to banks and other financial institutions, was dated July 28, 2016.

 Aside from this approval, the CBN also ordered banks and other financial institutions to remove fixed interest rate on credit cards.

The central bank directed the banks to henceforth begin to embed customers’ Bank Verification Numbers on their payment cards.

It also ordered the banks to discontinue actual address verification as a condition for account opening for customers with the BVN.

In approving cheque deposits into savings accounts, the apex bank limited the daily deposit to only N2m per customer in a day.

The CBN said the new guidelines were meant to strengthen the payment system and the banking sector.

The circular, with reference number BPS/DIR/GEN?CIR/03/005, read, “The Central Bank of Nigeria, in furtherance of its efforts at strengthening the Nigerian payment system, hereby issues the following directives: the removal of fixed interest on credit cards; and discontinuation of actual address verification in account openings for customers with the Bank Verification Number.

“Banks should begin to embed the BVN on all payment cards issued henceforth to facilitate off-line BVN verification and biometric-based customer authentication in such payment devices as the Automated Teller Machines, Point of Sale Terminal, kiosks etc.

“Savings account customers with the BVN should be allowed to deposit cheques not more than N2m in value into their savings account per, customer per day. Please, be guided and ensure strict compliance with the content of this circular.”

In another development, the CBN advised Nigerians at home and in the Diaspora to beware of the unwholesome activities of some unlicensed International Money Transfer Operators in the country.

It said in a statement by its Acting Director, Corporate Communications, Isaac Okoroafor, that the warning had become necessary because of the activities of some unregistered IMTOs, whose modes of operation were detrimental to the Nigerian economy.

Okoroafor stated, “All financial service providers in Nigeria, just as in other jurisdictions, are required to be duly licensed in order to protect both customers and the financial system as well as to ensure the credibility of financial transactions.

“For the avoidance of doubt, all licensed International Money Transfer Operators, in line with the CBN circular on the sale of foreign currency proceeds of July 22, 2016, are required to remit foreign currencies to their respective agent banks in Nigeria for disbursement in naira to the beneficiaries, while the foreign currency proceeds are to be sold to Bureaux De Change operators for onward retail to end users.

“The Central Bank of Nigeria will, therefore, not condone any attempt aimed at undermining the country’s foreign exchange regime.

“Accordingly, members of the public are advised to beware of the activities of such unregistered IMTOs for the greater economic good of Nigeria.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Finance

Faceoff as Humanitarian Minister Writes Finance Minister on N206bn Budget Padding

N206 billion inserted into the ministry of Humanitarian Affairs, Disaster Management, and Social Development

Published

on

Sadiya Umar Farouq, the Minister of Humanitarian Affairs, Disaster Management and Social Development

The Minister of Humanitarian Affairs, Disaster Management, and Social Development, Sadiya Umar Farouq has written to the Minister of Finance seeking clarification on the N206 billion inserted into the ministry 2023 budget. 

It would be recalled that some ministries and government agencies alleged the insertion of some projects amounting to N423.8bn in their respective budget proposals without their knowledge. 

Some of the concerned MDAs include the National Universities Commission (NUC), Ministries of Defence, Power, and Humanitarian Affairs. Investors King learnt. 

Representatives of the MDAs had told the National Assembly that they can not explain what the sums are meant for or the details of the projects tied to the funds since they were not part of their proposals sent to the finance ministry for the 2023 fiscal year.

According to the Minister of Defence, Maj. Gen. Bashir Magashi (retd), about N11 billion was inserted into the ministry’s budget. He told a Senate Committee during budget defence sessions. 

Similarly, the Minister of Health also alleged the same thing accusing officials of the Ministry of Finance of padding. 

The Executive Secretary of NUC, Professor Abubakar Rashid, also told the joint Senate and House Committee on Tertiary Education and TETfund during budget defence that N12 billion was inserted by the Ministry of Finance into the agency budget. 

“In NUC’s budget, we have a problem. We had additional money given to us that we didn’t request, but I later went to the Ministry of Finance to find out because our budget was always hovering around N3 billion” he said. 

Sources from the ministry of humanitarian affairs disclosed that the letter written by the minister seeking clarification is necessary owing to the negative public perception it could give the ministry and the minister in particular. 

The sources added that the minister’s husband who is a governorship candidate in Bauchi state might also be affected by the negative media perception. 

“We are disturbed and the minister is not leaving anything to chance. We want a quick clarification of the inserted figure in our ministry’s 2023 budget proposal,” the source said. 

Continue Reading

Finance

EFCC, ICPC to Track Large Withdrawals as CBN Launches New Notes

Godwin Emefiele has said the central bank will engage the service of both EFCC and ICPC to monitor large withdrawals from banks. 

Published

on

EFCC

Indications have emerged that both the Economic and Financial Crime Commission (EFCC) and the Independent Corrupt Practices & Other Related Offences Commission (ICPC) will collaborate with commercial banks to track large withdrawals as the CBN launches new naira notes. 

Investors King reported yesterday that President Muhammadu Buhari has unveiled the new naira notes ahead of their circulation. 

While briefing the press after the launch, the central bank governor, Godwin Emefiele noted that the apex bank will engage the service of both EFCC and ICPC to monitor large withdrawals from banks. 

Emefiele disclosed that the amount of money that can be withdrawn from the counter would be reduced drastically. 

He added that bulk withdrawals would require several procedures and security checks to track use.

“We will restrict the volume of cash that people can withdraw over the counter. If you need to draw large volumes of cash, you will fill out uncountable forms; we will take your data, whether it’s your BVN or NIN so that our law enforcement agencies like EFCC and ICPC can follow you and be sure that you are taking that money for a good purpose,” he said. 

The CBN governor however refuted that the policy is aimed at anyone. There has been speculation that the currency redesign was targeted at some politicians especially those in the opposition. 

“There is no need for anybody to think this program is targeted at anyone. Like you heard the President, he said, this discussion to redesign and reissue currency started early in the year,” he stated. 

It could be recalled that the central bank announced its intention to redesign N200, N500, and N1000 in October 2022. 

While making the announcement, the CBN governor noted that the policy is aimed to address the excesses of currency circulation, counterfeiting and terrorism. 

Emefiele said there was significant hoarding of naira notes by members of the public, with statistics showing that over 80 percent of the currency in circulation was outside the vaults of the commercial banks.

Continue Reading

Finance

CBN Disburses N41.02 Billion to 4.6 Million Smallholder Farmers in October

The central bank disbursed N41.02 billion to several smallholder farmers under the Anchor Borrowers’ Programme (ABP)

Published

on

Godwin Emefiele - Investors King

The Central Bank of Nigeria (CBN) has said it disbursed N41.02 billion to several smallholder farmers under the Anchor Borrowers’ Programme (ABP) across the country in the month of October.

This was stated in the bank’s communique no. 145 of the monetary policy committee minute published on Tuesday.

The apex bank has now disbursed a combined N1.067 trillion to 4.6 million smallholder farmers cultivating 21 commodities across the country.

In the same month, the central bank also provided a N0.30 million grant to large-scale agricultural projects under the Commercial Agriculture Credit Scheme (CACS). Consequently, the total disbursement under the Scheme for agro-production and agro-processing stands at N745.31 billion for 680 projects.

Explaining the significance of the disbursement to the bank’s ongoing policy, the apex bank said it would help boost the non-oil export sector and deepen the nation’s foreign reserves.

In addition, the bank released the sum of N48.30 billion under the N1.0 trillion Real Sector Facility to seven (7) new real sector projects in agriculture, manufacturing, and services. Cumulative disbursement under this Facility currently stands at N2.15 trillion to 437 projects across the country, comprising projects in manufacturing (240), agriculture (91), services (93) and mining sector (13).

Furthermore, under the 100 for 100 Policy on Production and Productivity (PPP), the bank disbursed the sum of N20.78 billion to nine (9) projects in healthcare, manufacturing, and services.

The cumulative disbursement under the Facility, therefore, amounted to N114.17 billion in 71 projects. Moreover, the Bank disbursed N4.00 billion under the Intervention Facility for the National Gas Expansion Programme (IFNGEP) to promote the adoption of compressed natural gas (CNG) for transportation and liquefied petroleum gas (LPG) for cooking.

Meanwhile, the CBN-led monetary policy committee raised the interest rate by another 100 basis points from 15.5% to 16.5%. Therefore, the apex bank has risen interest rates by 500 basis points in 2022 alone.

 

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending