The Central Bank of Nigeria has excluded primary mortgage Banks and Microfinance Banks providing banking services to people experiencing poverty from its cash withdrawal limit.
In a circular released on Monday, July 31, to the banks and other financial institutions and signed by the Director of Payment System Management, Musa Jimoh, the bank said those categories of banks are exempt from its cash withdrawal limits imposed on commercial banks.
The circular read, “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 corresponding banks.
“This is to enable them to continue to play their expected roles in the economy and provide specialised retail banking service 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.”
In the heat of the naira redesign programme in December 2022, the CBN imposed limits on withdrawals by commercial bank customers.
The CBN placed a N20,000 weekly withdrawal limit on individuals and N500,000 on corporate bodies. The policy, however, drew knocks from Nigerians, prompting the CBN to raise the weekly withdrawal limits to N500,000 for individuals and N5 million for corporate organisations, respectively.
The CBN said any withdrawal above the approved limits must be approved in writing by the bank’s Managing Director. The latest move by the bank is meant to boost financial inclusion, especially for the poor and rural dwellers.
