E-Naira: CBN okays N50,000 transfer limit, begins October 1 – Newstrends
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E-Naira: CBN okays N50,000 transfer limit, begins October 1

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The Central Bank of Nigeria has fixed October 1, 2021 for the commencement of digital currency (e-naira) and set an initial transaction limit of N50,000 for non-account.

The e-Naira is a legal tender for the entire country and it will have non-interest-bearing, a transaction limit for customers, and a value-based transaction limit.

The just released guidelines by the apex bank to Deposit money banks stipulate a transaction limit for customers, non-interest-bearing Central Bank Digital Currency (CBDC) status and an account value limit.

There are three levels to the CBN “Speed wallet” issued primarily to meet the October 1, 2021, deadline.

As a means to transact value, the wallet does not compete with existing banks but is awaiting the creation of wallets by banks and other innovators.

According to the guidelines, with the first tier, Speed Wallet can be used by anyone who does not have a bank account. However, users will have to submit a passport photo, a name, birth date and place, a phone number, and their address.

A N50,000 limit is in place for “Send & Receive”. The minimum requirement is the individual’s National Identity Number (NIN), which will be validated. A cumulative balance of N300,000 is fixed each day.

An account with an existing bank is required for users of Tier Two wallets.

 

The user is limited to sending and receiving N200,000 per day with a cumulative balance of N500,000 daily. A Bank Verification Number (BVN) is the minimum requirement for this level.

Tier three allows daily transactions of N1 million, with daily cumulative balances of N5 million. In order to qualify, you need to have at least a BVN.

Those who possess this merchant level can send or receive a million naira daily. A merchant can move as much money as they want into their bank accounts.

However, In context, the Central Bank further disclosed, neither merchants nor customers using the wallet will be charged a fee.

The CBN also outlined that Nigerian banks would be allowed to invite all their customers to register for the e-Naira.

“Besides pre-generated codes, the banks can send invitation codes for onboarding to a specific list of selected customers. Onboarding will be done for customers who have a code assigned by their banks. The banks have already validated and verified these customers,” it stated.

It further disclosed that the wallet provided by its institution was merely a stop-gap measure for meeting the deadline, given that banks and other licensed operators could provide their own wallets since it did not intend to compete against the banks.

 

“As a National Critical Infrastructure, the e-naira system will be subject to comprehensive security checks, all data and personally identifiable information (PII) will be kept off the ledger and will not be stored on the ledger,” the apex bank added.

 

 

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CBN raises commercial banks’ capital base to N500bn

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CBN raises commercial banks’ capital base to N500bn

The Central Bank of Nigeria (CBN) has increased the minimum capital requirements for commercial, merchant and non-interest banks.

The CBN increased the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were fixed at N200 billion and N50 billion, respectively.

This was announced in a statement on Thursday, noting that the increase was due to prevailing macroeconomic challenges and headwinds.

The statement signed by Haruna Mustafa, director, financial policy and regulation department at the CBN.

It said the upward review would enhance the banks’ resilience, solvency and capacity to continue to support the growth of the Nigerian economy.

Also, the CBN raised the merchant bank minimum capital requirement to N50 billion for national licence holders.

The financial regulator said the capital base for national and regional non-interest banks is N20 billion and N10 billion, respectively.

To meet the minimum capital requirements, the CBN advised banks to consider the injection of “fresh equity capital through private placements, rights issue and/or offer for subscription”.

The CBN also suggested merger and acquisition (M&A), as well as upgrade or downgrade of licences.

“The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall not be based on shareholders’ funds,” it stated

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Tinubu orders creation of single-digit tax system

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Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

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Naira gains further against dollar

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Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

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The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

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