The Central Bank of Nigeria (CBN) is investigating complaints that some commercial banks are restricting customers from accessing cash in their domiciliary accounts.
The apex bank is expected to take steps to ensure that customers with legitimate withdrawal requests are able to access their foreign currency deposits in line with applicable banking requirements.
The development follows complaints from several bank customers who said they had experienced difficulties withdrawing foreign currencies, particularly US dollars and British pounds, from their domiciliary accounts.
Reports gathered by Financial Vanguard indicated that banks have adopted different measures, including placing limits on the amount customers can withdraw over the counter and claiming that certain foreign currencies were unavailable.
RelatedPosts
Some banks were also said to have offered customers only lower denominations of foreign currencies. In some cases, customers were reportedly offered $20 notes, which some account holders believed could discourage them from completing their withdrawal requests.
A customer of an old-generation bank reportedly requested to withdraw $5,000 but was told that the bank could only provide $3,000. The teller also reportedly expressed uncertainty about whether the customer would be able to obtain the full $3,000 if he returned the following day.
At another new-generation commercial bank, a customer requesting US dollars was reportedly told that the currency was unavailable and advised to keep checking back.
However, another customer at the same bank reportedly said he had just withdrawn $1,000, while a customer at another bank in Victoria Island, Lagos, said he had also collected $1,000. The latter customer claimed that $1,000 was the maximum amount that could be withdrawn over the counter at the bank, attributing the restriction to foreign exchange scarcity.
The reported restrictions have raised concerns among domiciliary account holders, particularly those who expect to have access to their legitimate foreign currency deposits when they meet the applicable requirements for withdrawals.
CBN begins intervention
A source close to the CBN told Financial Vanguard that the apex bank was already aware of the complaints and was working on measures to address the situation.
The source said the CBN had received several complaints from members of the public alleging difficulties in withdrawing cash from domiciliary accounts, even when the requests complied with the requirements governing the accounts.
According to the source, the complaints include reports of practices and arrangements that could prevent the timely and convenient processing of legitimate withdrawal requests.
The source indicated that the CBN may issue a circular directing banks to stop practices that unnecessarily restrict or delay legitimate cash withdrawal requests.
The proposed directive is also expected to require banks to review their existing practices and take immediate measures to ensure that legitimate withdrawal requests are properly honoured.
Banks accused of withholding forex cash
The report also cited banking sources who alleged that some banks could be retaining available foreign currency cash instead of dispensing it to customers.
According to the sources, some banks may be using the foreign currency cash available to them for other transactions, potentially generating additional earnings, rather than releasing the funds to customers who request withdrawals.
The allegation has further increased concerns among customers operating domiciliary accounts, who want reasonable access to their foreign currency deposits when they make legitimate withdrawal requests.
The CBN’s intervention is therefore expected to focus on ensuring that banks comply with applicable rules and do not unnecessarily prevent customers from accessing legitimate foreign currency withdrawals.
READ ALSO:
- Nigerian businessman and lottery billionaire Kessington Adebutu Donates ₦800 Million Lagos Security Fund Building, Five Patrol Vehicles
- NDLEA Arrests South African Woman With 36.65kg Of Cocaine, US-Based Nigerian Woman With Cannabis
- Abuja Hotel Worker Dies After Alleged Fight With Tiler
- Ebola: Lagos Upgrades Isolation Centre, Targets 24-Hour Test Results
- NSCDC Conducts 10km Fitness Walk To Prepare FCT Personnel For 2027 Elections
