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In a recent circular signed by Musa Jimoh, Director of Payments System Management Department at the Central Bank of Nigeria (CBN), microfinance banks (MFBs) and primary mortgage banks (PMBs) have been granted an exemption from paying processing fees for withdrawals exceeding the cash withdrawal limits.
The circular stated that the exemption applies specifically to microfinance banks and primary mortgage banks that cater to the economically active poor. The CBN’s decision aims to enable these institutions to continue fulfilling their essential roles in the economy and providing specialized retail banking services to their customers.
However, the exemption comes with a requirement for MFBs and PMBs to fully adhere to the cash withdrawal limits outlined in the circular with reference number BSD/DIR/PUB/LAB/015/073, dated December 21, 2022, when serving their customers.
The CBN’s directive emphasizes the importance of supporting microfinance banks and primary mortgage banks in their efforts to drive financial inclusion and promote economic growth, especially among the economically disadvantaged segments of the population.
By exempting MFBs and PMBs from withdrawal processing fees, the Central Bank of Nigeria aims to encourage and facilitate greater financial access and services for those who need it most. The move is expected to further empower these institutions in their mission to uplift the underprivileged communities and contribute positively to the nation’s economy.
All affected institutions are urged to adhere to the guidelines provided in the circular to ensure seamless implementation of the exemption while continuing to comply with the cash withdrawal limits specified by the CBN.
The exemption represents a step forward in fostering financial inclusivity and advancing the objectives of microfinance banks and primary mortgage banks in Nigeria. With the CBN’s support, these institutions are better positioned to continue playing pivotal roles in enhancing financial stability and growth in the country.
