Breaking News: CBN Bans Cash For Travel Allowances

Breaking News: CBN Bans Cash For Travel Allowances

In a bold move amidst the nation’s forex challenges, the Central Bank of Nigeria (CBN) enforces a digital revolution, decreeing that Personal and Basic Travel Allowances (PTA/BTA) must now be disbursed solely through electronic means….READ ALSO Reps Summon CBN And MDAs Over TSA Violations

Hassan Mahmud, Director of the CBN’s Trade and Exchange Department, unveiled this groundbreaking directive in a circular dated February 14, 2024. The announcement marks a significant shift in policy, compelling all authorized dealers and the public at large to embrace electronic channels for these transactions.

Titled ‘Allowable Channels For Payout Of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA)’, the circular reinforces the eligibility criteria outlined in Memorandum 8 of the Foreign Exchange manual and a prior directive from February 20, 2017.

In a bid to uphold market transparency, deter malpractices, and ensure forex stability, the CBN mandates that all Authorized Dealer Banks must transition to electronic disbursement methods for PTA/BTA. This includes the utilization of debit or credit cards, ushering in a new era of efficiency and accountability in forex transactions.

The CBN’s decisive action underscores its unwavering commitment to modernization and transparency, setting the stage for a more streamlined and secure forex landscape. As Nigeria navigates its forex challenges, this digital leap promises to reshape the country’s financial landscape for the better.