The Central Bank of Nigeria (CBN) on Monday removed primary mortgage banks and microfinance banks from its cash withdrawal limit policy.
The apex bank made this known in a circular signed by the bank’s Director, Payment System Management, Musa Jimoh and addressed to all financial institutions across the country.
The bank noted that microfinance banks and mortgage banks that serve the poor have been exempted from paying processing fees during cash withdrawals.
The CBN’s statement
- It stated thus, “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 21/12/2022.
What you should know
In December 2022, the CBN in a move to redesign the naira instituted cash withdrawal limits for banks and other financial institutions.
Maximum weekly withdrawal limits for individuals and corporate organisations were set at N500,000.00 and N5,000,000 respectively. It also stated that where the circumstance warrants a withdrawal, a processing fee of 3% and 5% will be charged for individual and corporate organizations respectively.
It also mandated banks and other financial institutions to ensure customers 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.
According to the CBN then, the new regulations were to be effective from Jan 9, 2023.
The bank explained the policy was to encourage individuals to key into its cashless policy initiative by encouraging the use of alternative transaction channels such as eNaira, mobile banking apps, USSD, internet banking, cards/POS etc.