₦airaland Forum

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.

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However, another customer at the same bank reportedly said he had just withdrawn $1,000, while a customer at another bank in Victoria Island, Lagos, said he had also collected $1,000. The latter customer claimed that $1,000 was the maximum amount that could be withdrawn over the counter at the bank, attributing the restriction to foreign exchange scarcity.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.

AnonPoet:
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.

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.

https://applesbite.com/cbn-moves-against-banks-over-forex-withdrawal-restrictions/

Imalwayshorny:
How will jennyclay and verminnel survive with their international clients

SmartMaster001:
"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."

melow666:
Thats a strange one, on one hand CBN claims to be battling dollarization, on the second hand, they are concerned about denominations paid customers who obviously wants a higher denomination to sell in the black market.

DuttyChuks:
You no see how she is now, tilumbu regime dey deal with her and her clients no dey show up. Make she try upgrade with juju naa

patomaniac:
very funny report, when CBN doesnt supply enough USD how do they expect the banks to pay out USD? u receive USD inflow from abroad but want to withdraw the USD physically, how will the banks get the USD? besides we know election is on the way and they need to withdraw such funds to fund their malpractices.

Selah

melow666:
Thats a strange one, on one hand CBN claims to be battling dollarization, on the second hand, they are concerned about denominations paid customers who obviously wants a higher denomination to sell in the black market.

yinchar:
Are you there, how did you know CBN did not support enough USD

This is massive transformation, compared to the era of Jonathan and Buhari where there was limited USD access and suspension of USD purchases on all Nigerian Cards

melow666:
Thats a strange one, on one hand CBN claims to be battling dollarization, on the second hand, they are concerned about denominations paid customers who obviously wants a higher denomination to sell in the black market.

skultrick:
I thought as much...they said that dollar is now available but anytime you go to UBA they will say they don't have USD...unless you can collect $20 or $50 bills...

The other day they said no USD but right there I saw another staff counting over $10k...I told the guy attending to me BUT is that not USD I am seeing...he said its not he's...

Joelinton:
I do not support banks to hurd foreign currency but CBN should also try and supply enough forex to the banks too.

XtremeConsumer:
They are greedy. Most times they will tell you they don't have dollars to give.

They should grant licence to play to run form account abeg.

Dalohad:
GTBank and EcoBank, hope you are not involved in this shenanigans?

Gboss247:
Greedy how? Is the CBN printing physical dollars?

Reference:
In Nigeria, no one is ever held accountable by NAMING NAMES.

One reads about issues abroad to the very last detail, everything is disclosed. But here they tell stories without actors.

If someone cannot access the contents of his accounts and it is against the law or regulatory agencies what is wrong in calling them out by name. If you can't how do you get to solve the issue, and how will others be aware and learn.

You hear radio and tv stations hiding behind the absurd thinking of not giving free advert, when the exact opposite is the case.

Then you hear folks on social media complaining about poor service and when you ask them who does what, they chicken out as if the value of the transaction does not belong to them.

If I call out a bank by name, what will they do, to me, seize my money.....?
Name them so that at best people avoid falling into the same pit and at worst folks will vote with their feet. That is how society improves itself.

Dalohad:
GTBank and EcoBank, hope you are not involved in this shenanigans?