The Central Bank of Nigeria (CBN) implements a daily cash withdrawal limit of N100,000 per customer for Point of Sale (POS) transactions. This new directive, aimed at improving agency banking operations and promoting electronic payments, aligns with the CBN’s push for a cashless economy.
The policy, outlined in a circular dated December 17, 2024, is signed by Oladimeji Yisa Taiwo on behalf of the Director of the Payments System Management Department. The circular is addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents, emphasizing the need to enhance monitoring and prevent fraud within the agent banking sector.
Key Guidelines for POS Agents
The directive introduces the following measures:
- Daily Customer Withdrawal Cap: POS agents must ensure that individual customers do not withdraw more than N100,000 per day.
- Agent Transaction Limit: Each agent’s daily cash-out transactions are capped at N1,200,000.
- Weekly Customer Withdrawal Limit: Customers can withdraw a maximum of N500,000 per week.
- Separation of Services: Agents must clearly separate banking services from other merchant activities and use the designated Agent Code 6010 for all transactions.
- Exclusive Float Accounts: All agent banking activities must be conducted through dedicated float accounts tied to principal institutions.
- BVN Monitoring: Institutions are required to monitor agent accounts linked to Bank Verification Numbers (BVNs) to prevent unauthorized transactions.
- Real-Time Reporting: POS agents must connect their terminals to the Payment Terminal Service Aggregator (PTSA) and submit daily transaction reports electronically to the Nigerian Inter-Bank Settlement System (NIBSS) using a reporting template provided by the CBN.
The CBN stresses that all financial institutions are accountable for the activities of their agents. To ensure compliance, the bank will conduct periodic checks, including backend system reviews. Non-compliance with these directives will result in monetary penalties and administrative sanctions.
This policy aims to enhance security and curb fraud in agent banking operations. However, it may pose challenges for POS operators who rely on high-volume transactions, particularly in rural areas with limited banking access. Customers may also experience inconveniences due to reduced cash availability, especially during peak periods like the festive season.
The CBN calls on stakeholders to adhere to these guidelines, emphasizing the importance of collaboration in achieving a secure, efficient, and cashless financial system in Nigeria.
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