BTA/PTA by Cash No Longer Permitted, CBN Tells Banks
Nigerian banks have been directed by the Central Bank of Nigeria (CBN) to stop effectively immediately the old practice of paying Business and Personal Travel Allowance (BTA/PTA) in US dollar cash to requisitors, their customers.
The directive, signed by Hassan Mahmud, director of the trade and exchange department, underscores the CBN’s commitment to enhancing accountability and efficiency within the foreign exchange market. The apex bank said the step has become necessary in a bid to promote transparency and stability in the foreign exchange market while preventing malpractices.
Referencing memorandum 8 of the foreign exchange manual and circular FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, the trade and exchange department of the CBN outlined the eligibility criteria for accessing PTA/BTA.
Effective immediately, all Authorized Dealer Banks are mandated to process payouts of PTA/BTA exclusively through electronic channels, which include debit or credit cards. The traditional cash disbursement method for these allowances is no longer permissible; the circular reads.
Authorized dealers and the public are urged to adhere to these guidelines accordingly. For further details and compliance, all stakeholders are encouraged to consult the official communication from the Central Bank of Nigeria. Court Orders FCMB to Deposit N540m Defamation Damage Awarded to Prophet Omale
The circular partly reads: “In line with the bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices …All Authorised Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards.”
The CBN said it remains committed to promoting transparency in the Nigerian Foreign Exchange Market and will continue to develop policies to stabilise and further deepen the market. #BTA/PTA by Cash No Longer Permitted, CBN Tells Banks
