CBN exempts mortgage, micro-finance banks from cash limit policy

The Central Bank of Nigeria (CBN) has announced the exemption of primary mortgage banks and Microfinance banks from its cash withdrawal limit.

The apex bank issued the directive in a circular tagged, ‘PSM/DIR/PUB/CIR/001/049’, addressed specifically to banks and other financial institutions.

The circular titled, ‘Exemption of Primary Mortgage Banks and Microfinance Banks from cash withdrawal limits’, was signed by Musa Jimoh, the CBN director, payment system management department.

It stated 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 corresponding banks.

This, according to the CBN,  is to enable them to continue to play their expected roles in the economy and provide specialised retail banking service to their customers.

The circular also  noted 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.