The Central Bank of Nigeria, CBN, has announced the exemption of microfinance banks, MFBs, and primary mortgage banks, PMBs, from paying processing fees for withdrawals that exceed the cash withdrawal limits.
This was disclosed in a circular issued by Musa Jimoh, director of payments system management department on Monday.
The circular 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 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.”
Recall that the CBN had in December 2022 set a N100,000 and 500,000 withdrawal limit for individuals and corporate bodies respectively.
However, the limit was reviewed to N500,000 and N5 million respectively following reactions from Nigerians.
The CBN said a processing fee of 3 percent and 5 percent will be charged for individual and corporate organisations, respectively where withdrawals above the specified limit is required for legitimate purposes.
The cash withdrawal policy commenced on January 9, 2023.
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