Bank customers shun cash deposits into domiciliary account

Bank customers are shying away from making cash deposits into their domiciliary accounts three days after the Central Bank of Nigeria lifted the ban on foreign currency deposits, our correspondent has learnt.

The CBN had Monday said holders of ordinary domiciliary accounts were allowed to deposit foreign currencies into their accounts, a move that ended a six-month embargo on the banks from receiving cash deposits from the customers.

Bankers at some branches of Guaranty Trust Bank, First City Monument Bank and First Bank of Nigeria in Lagos told our correspondents on Thursday that customers had not been coming to make dollar deposits.

Industry analysts said the lack of certainty about whether customers could transfer or do transactions with the deposits was the major factor discouraging foreign currency deposits by customers, stating that the central bank needed to address that.

The CBN had on August 5, 2015 banned the payment of cash into domiciliary accounts in a bid to stop illicit financial flows in the Nigerian banking system.

A spokesperson of one of the banks, who pleaded anonymity, said, “The directive from the CBN was silent on whether customers can transfer the deposits, and I know there are concerns about that. Possibly, this is one of the things the Bankers’ Committee might want to discuss at its next meeting.

“I am as confused as the rest of the bank customers. I don’t really understand what the central bank is trying to do. A lot of the things they are saying we are not really clear about it. The banking industry is still very confused.”

The Head, Media and External Relations, FirstBank, Mr. Babatunde Lasaki, said, “People have been coming to deposit money into their domiciliary accounts in our bank.”