Microfinance banks operating in the country have been granted waiver for cash collection and lodgment processing charges by the Central Bank of Nigeria (CBN). Meanwhile, microfinance banks’ customers are not exempted from the cash-lite economy in terms of cash withdrawal and deposit limit processing charges.
This is as a result of the fact that these banks disburse and collect cash from their numerous customers who are not lettered. Microfinance bank customers operate at the lowest end of the economy and deal mainly in cash. Olufemi Babajide, chairman, Lagos State chapter of National Association of Microfinance Banks (NAMBLAG), disclosed this while refuting the news aired by Channels Television that microfinance banks’ customers were exempted from cash processing charges of the CBN.
He said he had never had an interview with the media organisation and had never given out such information, saying “the CBN policy on cash-lite economy is applauded by microfinance banks. Microfinance banks will not pay cash processing charges if they deposit or withdraw cash from their correspondence banks in excess of N1 million per day as contained in the policy.
“This is as a result of the fact that we disburse and collect cash from our numerous customers who are not lettered. MFB customers operate at the lowest end of the economy and they deal mainly in cash. However, the policy on cash-lite economy as spelt out by the CBN will be applied to MFB customers.
“That is, they will pay cash processing charges if they deposit or withdraw amounts in excess of N150,000 for individuals and corporate bodies. Other payment options such as mobile payment, use of cheque books, credit cards, funds transfer, etc. are gradually being embraced by MFB customers.
Whereas MFBs are exempted from the cash-lite policy of the CBN, their customers are not exempted.” The CBN last year pegged a limit of daily cash withdrawal and lodgment by any individual and corporate customer at N150,000 and N1 million, respectively.
It also gave June 1, 2012, as deadline for the commencement of the daily cumulative limit of N150,000 and N1,000,000 on free cash withdrawals and lodgments by any individual and corporate customers, respectively, with Deposit Money Banks (DMBs).
This latest development, according to the apex financial regulatory authority, is coming on the heels of increasing dominance of cash in the economy with its implication for cost of cash management to the banking industry, security, money laundering, among others.
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