The Central Bank of Nigeria has directed banks in Nigeria to accept deposit of cheques in savings account. The development is a break from more than a decade old practice of not allowing cheques to be paid into savings account as against current account.
A circular issued by the apex bank and signed by Director, Banking and Payments System Department, Dipo Fatokun, also directed banks to begin to embed Bank Verification Number (BVN) in payment cards.
“The CBN in furtherance of its efforts at strengthening the Nigerian payments system hereby issues the following directives: “The removal of fixed interest rate on credit cards; Discontinuation of actual address verification in account opening for customers with customers with the BVN; Banks should begin to embed BVN biometric data in payment cards issued henceforth, to facilitate offline BVN verification and biometric based customer authentication on such payment devices as Automated Teller Machines, ATMs, Point of Sales Terminals, POS, Kiosks, etc.”
“Approval of BVN Watch-listing modalities and release by CBN of necessary Credit Risk Management System (CRMS) data, to facilitate its use for enriching the BVN watch-list; savings account customers with BVN should be allowed to deposit cheques worth not more than N2,000,000.00 (Two million naira) into their accounts, per customer, per day”, the circular said.