The Central Bank of Nigeria (CBN) on Thursday reminded all Deposit Money Banks (DMBs) on the commencement of the Federal Government Independent Revenue e-Collection Scheme.
The Federal Government Independent Revenue e-Collection initiative will automate revenue collections of Ministries, Departments and Agencies (MDAs) directly into the Federal Government’s Consolidated Revenue Fund (CRF) account at the CBN through the Remita e-collection platform and other electronic payment channels.
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Consequently, as the apex bank previously communicated, banks branches are required to have been setup and sensitised, and their internet banking platform configured for use by revenue payers, to make transfers to the Federal Government e-collection account in their, which will be swept by the banks to the CRF, as previously agreed the CBN, Office of the Accountant General of the Federation (OAGF) and banks.
The OAGF had issued a treasury circular to all MDAs to close existing revenue accounts in banks not later than February 28, 2015 and transfer available funds to the CRF.
Dipo Fatokun, director, banking and payments system department, CBN in a circular released yesterday told banks to ensure full compliance.
Sundiata Post reports that banks are beginning to look for new sources of deposits and means of boosting profits, as the Treasury Single Account (TSA) implementation looms.
Bolade Agbola, Chairman, Lagos State Branch of the Chartered Institute of Bankers of Nigeria (CIBN) told Sundiata Post on phone that by the time the MDAs pull their funds, banks will not be able to make profit the way they used to, their margins will shrink, so many laons will go bad and provision for loan loss will increase.