August 01, (THEWILL) – The Central Bank of Nigeria (CBN) has exempted Microfinance banks (MFBs) and primary mortgage banks (PMBs), from paying processing fees for withdrawals above the cash withdrawal limits.
In December 2022, the CBN directed deposit money banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities per week do not exceed N100,000 and N500,000 respectively.
Although the cash withdrawal policy commenced on January 9, 2023, the apex bank further increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations to N500,000 and N5 million respectively.
But the CBN on Monday, in a circular signed by its Director, Payment System Management Department, Musa Jimoh, exempted Microfinance banks and mortgage banks that serve the poor, from paying processing fees during cash withdrawals above the withdrawal limits.
Addressed to banks and other financial institutions, the circular reads in part: “The Central Bank of Nigeria hereby directs the exemption of microfinance banks and primary mortgage banks that provide banking services to the economically active poor, from paying the processing fees for withdrawals above the cash withdrawal limits for direct cash withdrawals from their correspondent banks.
“This is to enable them continue to play their expected roles in the economy and provide specialised retail banking services to their customers.
“Please, note that the microfinance and primary mortgage banks are required to fully comply with the cash withdrawal limits in serving their customers as per the circular with reference number BSD/DIR/PUB/LAB/015/073 dated December 21, 2022.
“Please be guided accordingly.”
