The Central Bank of Nigeria (CBN) has recently taken a commendable initiative, granting an exemption to Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs) from paying processing fees for withdrawals exceeding the cash withdrawal limits from their correspondent banks. This progressive decision reflects the CBN’s recognition of the pivotal role these institutions play in serving the economically active poor.
In a circular dated July 31, 2023, signed by Mr. Musa Jimoh, the Director of Payments System Management Department at CBN, the directive was officially communicated to banks and Other Financial Institutions. The move aims to promote inclusivity and empower PMBs and MFBs to continue contributing significantly to the economy, catering to the financial needs of their customers with specialized retail banking services.
By encouraging these banks to waive the processing fees, the CBN reinforces its commitment to fostering financial growth and accessibility, particularly for those in need. This step acknowledges the vital services provided by PMBs and MFBs, enabling them to support the economically active poor and contribute to the nation’s economic development.
