The Central Bank of Nigeria (CBN) has exempted Microfinance Banks (MfBs) and Primary Mortgage Banks (PMBs) from the cash withdrawal limit policy compliance.
In a circular to banks and other financial institutions signed by CBN Director, Payment System Management Department, Must Jimoh, Microfinance banks and primary mortgage banks do not need to comply with the cash withdrawal limits for direct cash withdrawals from their correspondent banks.
Jimoh in the circular titled: “Exemption of Primary Mortgage Banks and Microfinance Banks from Cash Withdrawal Limits” said: ” 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.”
Continuing, he said the move was to enable them continue to play their expected roles in the economy and provide specialised retail banking services to their customers.
“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,” he said.
Under the updated cash withdrawal policy regime, the CBN directed that effective January 9, 2023, individuals and corporate entities can withdraw a maximum of N500,000 and N5 million respectively.
The policy shift supersedes N100,000 and N500,000 for individuals and corporates respectively, previously announced by the apex bank on December 6, 2022.
