Deposit Money Banks have slashed the amount their customers can apply for Personal Travel Allowance and schools fees as the foreign exchange worsens.
Lenders have been forced to take drastic measures to meet their dollar obligations in recent times because of the shortage of foreign exchange.
Some DMBs have sent emails to their customers on Tuesday about the new development. In the emailed letter, the amount of PTA their customers can apply for from $4,000 to $2,000.
The Punch reported that lenders slashed foreign school fees payment to $7,500 per semester from $15,000.
One of the DMBs, First Bank of Nigeria Limited admonished its customers to also make their various FX requests several weeks ahead of time.
FBN sent a general email to its customers titled, ‘Important update on FX purchase.’
Also, the bank noted that requests could only be made twice a year. Customers were instructed to submit their applications weeks before their trips.
Part of the mail reads, “At FirstBank, we value you and are committed to keeping you informed on changes regarding foreign currency (Form A) requests. In view of the limited FX supply in the industry, kindly note the following:
“Payment of PTA/BTA is subject to a maximum of $2,000 and two quarters in a year, while funds will be disbursed within the week of the trip. Customers are encouraged to apply for PTA/BTA some weeks ahead of their trip.”
It added that, “Application for upkeep is subject to a maximum of $1,500 (or its equivalent in other currencies) per semester and limited to two semesters per session.
“Payment of school fees is subject to a maximum of $7,500 (or its equivalent in other currencies) per semester and limited to two semesters per session. A minimum of 16 weeks is required for processing school fees and upkeep/maintenance, after the submission of documents along with the approved Form A at the branch.”
The bank said they will continue to treat requests on a first come first served basis while also considering the availability of foreign exchange.
It also warned that customers’ accounts should be sufficiently funded as failure to do this will result in rejection.
It says, “Kindly ensure your account is sufficiently funded to accommodate the value of the transaction and charges at the time of processing, “as any request not backed with an adequately funded account or the required documentation will be rejected and considered a new request upon re-submission. Updates on pending, approved or rejected Form A requests are duly posted and accessible on the Trade Monitoring System portal.”