CEM EPORT, FINANCE | Primary Mortgage Banks and Microfinance Banks have been exempted from the cash withdrawal limit policy of the Central Bank of Nigeria (CBN).
According to a circular by the CBN. microfinance banks and mortgage banks that serve the poor have been exempted from paying processing fees during cash withdrawals.
The circular addressed to all financial institutions across the country, dated 31 July 2023 was signed by the bank’s Director, Payment System Management, Musa Jimoh.
The bank cleared that the exemption of microfinance banks and mortgage banks was for them to continue to play their expected role in the economy and provide specialized banking services to their customers.
The statement reads;
“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 fee for withdrawals above the cash withdrawal limit for direct cash withdrawals from their correspondent banks.
“This is to enable them to continue to play their expected role in the economy and provide specialized banking services to their customers”
The bank also noted that microfinance banks and mortgage banks are to adhere to the cash withdrawal limits stated in its circular BSD/DIR/PUB/LAB/015/073 dated December 21, 2022.
Recall that CEM reported that the CBN instituted a cash withdrawal limits for individuals and corporate organisations in December 2022.
The CBN placed a maximum weekly withdrawal limits for individuals at ₦5 hundred thousand and corporate organisations at ₦5 million. It also stated that where the circumstance warrants a withdrawal above the limit a processing fee of 3% and 5% will be charged for individual and corporate organizations respectively.
Additionally, it said that for withdrawal above the limit such customer should provide their Tax Identification Number, means of identification and a written note of approval from the MD/CEO of the financial institution authorising the withdrawal.
