The Central Bank of Nigeria (CBN) has ordered banks to stop cash payments but use electronic payments for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). This directive was contained in a circular titled, ‘Allowable Channels For Payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA)’, which was issued on Thursday and signed by CBN’s, Director of Trade and Exchange Department, Hassan Mahmud.
The circular reads in part, “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.”
The introduction of this new policy is created by the apex bank to control the volatility in the foreign exchange market.
