The Central Bank of Nigeria has directed banks in the country to stop the payment of personal and business travel allowances (PTA/BTA) in cash as a measure aimed at reducing dollar demand in the country.
Although some banks before now had resorted to paying into either domiciliary accounts or foreign currency-denominated cards, many still pay customers in cash.
But, a circular issued on Thursday to all authorized dealer Banks titled ‘Allowable Channels for Payout of PTA and BTA’, signed by the Director of Trade and Exchange of the CBN, Dr Hassan Mahmud, stated that the directive takes effect immediately.
The circular stated that “memorandum 8 of the foreign exchange maul and the circular with reference FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, stipulate the eligibility criteria for accessing personal and business travel allowances (PTA/BTA).
“In line with the bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, all authorized dealer banks shall henceforth effect payout of PTA/BTA through electronic channels only including debit or credit cards.
“For the avoidance of doubt payment of PTA/BTA by cash is no longer permitted. Authorized dealers and the general public are hereby to note and comply accordingly.”
