The Central Bank of Nigeria (CBN) on Monday removed primary mortgage banks and microfinance banks from its cash withdrawal limit policy. The apex bank made this known in a statement signed by the bank’s Director, Payment System Management, Musa Jimoh, addressed to all financial institutions across the country.
In December 2022, the CBN in a move to redesign the naira instituted cash withdrawal limits for banks and other financial institutions. Maximum weekly withdrawal limits for individuals and corporate organisations were set at N500,000.00 and N5,000,000 respectively.
It also stated that where the circumstance warrants a withdrawal, a processing fee of 3% and 5% will be charged for individual and corporate organizations respectively. According to the CBN then, the policy was to encourage individuals to key into its cashless policy initiative by encouraging the use of alternative transaction channels such as eNaira, mobile banking apps, USSD, internet banking, cards/POS etc.
However, Central bank hereby directs that microfinance banks and mortgage banks that serve the poor have been exempted from paying processing fees during cash withdrawals above the cash withdrawal limit.
The bank also noted that microfinance banks and mortgage banks are to adhere to the initial cash withdrawal limits stated in BSD/DIR/PUB/LAB/015/073 dated 21/12/2022. It also mandated banks and other financial institutions to ensure customers provide their Tax Identification Number, means of identification and a written note of approval from the MD/CEO of the financial institution authorising the withdrawal.
