The Central Bank of Nigeria (CBN) has banned banks from cash payment of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), a move the apex bank believes will help it track transactions.
The apex bank stated that authorised dealers can pay through electronic channels only.
The CBN gave the directive in a circular referenced TED/FEM/PUB/FPC/001/006 titled, ‘Allowable Channels for Payout Of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA)’.
The circular was signed by the CBN Director of Trade and Exchange Department, Dr Hassan Mahmud, said, “Memorandum 8 of the Foreign Exchange manual 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.”
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