CBN Mandates Electronic Channels for Payout of PTA and BTA, Bans Cash Transactions

The Central Bank of Nigeria (CBN) has issued a directive prohibiting the use of cash for Business Travel Allowance (BTA) and Personal Travel Allowance (PTA), mandating banks to facilitate transactions exclusively through electronic channels. This decision, aimed at enhancing stability and transparency in the foreign exchange market, was communicated through a circular titled ‘Allowable Channels For Payout Of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA)’ signed by Hassan Mahmud, Director of the Trade and Exchange Department at the CBN.

The circular references Memorandum 8 of the Foreign Exchange manual and a previous directive dated February 20, 2017, outlining the eligibility criteria for accessing PTA/BTA. In alignment with the CBN’s commitment to combat foreign exchange malpractices and promote market integrity, all Authorized Dealer Banks are required to conduct PTA/BTA transactions solely through electronic channels, including debit or credit cards.

The CBN’s directive unequivocally prohibits cash payments for PTA/BTA, underscoring the imperative of compliance with electronic transfer methods. Both Authorized Dealer Banks and the general public are urged to adhere to these regulations to ensure seamless implementation and adherence to the principles of transparency and stability in the foreign exchange market.

This measure reflects the CBN’s ongoing efforts to modernize payment systems, enhance regulatory oversight, and mitigate the risks associated with cash transactions. As Nigeria navigates the evolving landscape of foreign exchange management, stakeholders are encouraged to embrace digital payment solutions for smoother and more secure transactions.

Stay tuned for further updates as the CBN continues to implement measures aimed at fostering financial stability and integrity in Nigeria’s economy.