Business and Economy

Microfinance Banks and Primary Mortgage Banks exempted from cash withdrawal limit policy

For direct cash withdrawals from their correspondent banks, microfinance banks and principal mortgage banks are exempt from the cash withdrawal limits, according to a letter to banks and other financial institutions from CBN Director, Payment System Management Department, Must Jimoh.

Jimoh stated in a circular titled “Exemption of Primary Mortgage Banks and Microfinance Banks from Cash Withdrawal Limits” that “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.”

He continued by saying that the change will allow them to continue to fulfil their predetermined responsibilities in the economy and continue to offer their clients specialised retail banking services.

According to the circular with reference number BSD/DIR/PUB/LAB/015/073 dated December 21, 2022, the microfinance and main mortgage banks are obligated to completely comply with the cash withdrawal limitations when providing their customers with services, he stated.

The CBN mandated that as of January 9, 2023, individuals and business entities might withdraw a maximum of N500,000 and N5 million, respectively, under the amended cash withdrawal policy regime.

The new regulation replaces the N100,000 and N500,000 thresholds for individuals and corporations, respectively, that the apex bank had earlier declared on December 6, 2022.

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