Regulatory Alerts2012-03-02 | BPS/DIR/GEN/CIR/01/002Circular on Cash Withdrawal Limit for Primary Mortgage Institutions and Microfinance Banks.
The Central Bank of Nigeria has clarified that the N1 million withdrawal limit for corporate customers does not apply to Primary Mortgage Institutions (PMIs) and Microfinance Banks (MFBs). These specialized banks often face daily withdrawals exceeding N1 million, necessitating them to withdraw more from their correspondent banks. As a result, such institutions should not be subjected to the corporate withdrawal limit, allowing them to meet their customers' needs.
CENTRAL BANK OF NIGERIA Central Business District P.M.B. 0187 Garki, Abuja 09-46238455 (Fax) 09-46238445 Tel BPS/DIR/GEN/CIR/01/002 March 1, 2012 ALL DEPOSIT MONEY BANKS NEED FOR CLARIFICATION ON CASH WITHDRAWAL LIMIT FOR PRIMARY MORTGAGE INSTITUTIONS AND MICROFINANCE BANKS It has come to our notice that some Deposit Money Banks apply cash withdrawal/deposit limits for Corporate Organizations to Primary Mortgage Institutions (PMIs) and Microfinance Banks (MFBs).
PMIs and MFBs are specialized banks as defined under the new banking model which have customers that maintain savings demand and time deposit accounts with them. As deposit-taking institutions, they are obliged to honour the withdrawal requests of their customers and other mature obligations.
It is imperative to note that the aggregate withdrawals by the depositors of MFBs and PMIs per day could exceed N1 million, thus necessitating those institutions to withdraw over N1 million from their correspondent banks in order to service their customers. It has that therefore, become necessary to clarify direct withdrawal/deposit by Microfinance Banks and Primary Mortgage Institutions are excluded from the policy of N1 million limit for corporate bodies to enable them meet the legitimate demands of their numerous customers. However, the cash withdrawal/deposit limits are applicable to the customers of MFBs and PMIs.
Please be guided.
0 G. I. Emokpae Ag. Director, Banking & Payments System Department