CBN: You can now pay cheques into your savings account

The Central Bank of Nigeria (CBN) says savings account holders in Nigeria can now pay cheques of N2million or less into their savings account per day.

In a circular signed by Dipo Fatokun, CBN director of banking and payment system, the bank also asked Deposit Money Banks (DMBs) to remove fixed interest rates on credit cards.

“The Central Bank of Nigeria, in furtherance of its efforts at strengthening the Nigerian payment system, hereby issues the following directives: the removal of fixed interest on credit cards,” the circular read.

“Discontinuation of actual address verification in account openings for customers with the Bank Verification Number.

“Banks should begin to embed the BVN on all payment cards issued henceforth to facilitate off-line BVN verification and biometric-based customer authentication in such payment devices as the Automated Teller Machines, Point of Sale Terminal, kiosks etc.

“Savings account customers with the BVN should be allowed to deposit cheques not more than N2,000,000.00 (two million naira) in value into their savings account per, customer per day. Please, be guided and ensure strict compliance with the content of this circular.”

This may lead to closure of current accounts by majority of low income current account holders, who opened the accounts specifically for the purpose of cheque payments.