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Tuesday, June 28, 2016

No Limit On Naira Debit, Credit Cards Utilization On E-channels

The Central Bank of Nigeria (CBN) yesterday said transactions done through electronic channels and Pointof-Sales (PoS) terminals are not subject to daily limit as settlement for the cards shall continue to be with interbank funds.

However, the maximum limit for naira debit and credit cards utilization shall be US$50,000.00 per annum. In addition, daily cash withdrawal limit is pegged at US$300.00 per person per day, and subject to monthly rendition of returns by Authorised Dealer banks and card issuers to the CBN.

This was contained in the new policy measures for 2016/2017 released yesterday by the Apex bank. The new policy measure stated that Naira Debit/Credit cards used locally are not affected and Debit/Credit cards linked to customers domiciliary accounts to be used overseas are also not affected.

According to the CBN, allowable limit of outbound money transfer per transaction per person shall be US$1,000.00 or its equivalent per quarter subject to review from time to time. Applicable charges by the operator shall be in compliance with the money transfer charges as may be prescribed by the CBN from time to time.

“Authorised Dealers shall henceforth utilize interbank funds strictly for funding of Letters of Credits, Bills for Collection and other invisible transactions, subject to appropriate documentation as 4 SECTION FOUR 51 Central Bank of Nigeria | January 2016 Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2016/2017 provided by extant regulation”, the CBN said in the new policy measures.

On the other hand, the CBN will continue to ensure that OFIs do not engage in nonpermissible activities as specified in the revised guidelines.

Also yesterday, the CBN requested all authorized dealers to submit returns on all foreign investments by Nigerian entities offshore from 2006 till date.

In a circular signed by Alvan Ikoku, director, trade and exchange department, the returns which should be in excel format, should reach the director, trade and exchange department, CBN, Abuja.

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