CBN Excludes Microfinance and Primary Mortgage Banks From Cash Withdrawal Limits

The Central Bank of Nigeria, CBN has exempted microfinance banks and primary mortgage banks from paying processing fees for withdrawals above the cash withdrawal limits.

This was contained in a circular issued on Monday and signed by the director of payments system management department, Musa Jimoh.

The CBN explained that this was to enable them continue to play their expected roles in the economy and provide specialized retail banking services to their customers.

The apex bank noted that the microfinance and primary mortgage banks are required to fully comply with the cash withdrawal limits in serving their customers.

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.

However, due to mixed reactions from Nigerians, the apex bank increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organizations to N500,000 and N5 million, respectively.

The apex bank said in compelling circumstances where cash withdrawal above the specified limit is required for legitimate purposes, a processing fee of 3 percent will be charged for individuals and 5 percent for corporate organizations, respectively.

According to the CBN, the aim is to boost the cashless policy and reduce the amount of cash outside the banking system