CBN limits POS daily withdrawal to N100,000 per customer

The Central Bank of Nigeria, CBN, has imposed a daily withdrawal cap of N100,000 per customer on point-of-sale, PoS, terminals.

In a directive addressed to all Deposit Money Banks, DMBs, microfinance banks, mobile money operators, and super-agents, titled ‘Cash-out Limits for Agent Banking Transactions,’ the CBN stated that the measure aligns with its ongoing push to promote a cashless economy.

The circular explained that the policy is designed to tackle existing challenges, curb fraud, and enforce uniform operational standards across the financial sector.

“In view of the above, ALL principals of agents are to comply with the following directives immediately:
i. Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week,” the circular reads.

“ii. Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer.

“iii. Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00.

“iv. Ensure that agent banking services are clearly demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities.

“v. Ensure that agency banking activities are consummated exclusively through agent float accounts maintained with the principals.

“vi. Monitor accounts associated with the agents’ BVN(S) with a view to identifying agent banking activities which may be conducted outside the designated float account(s).

“vii. Ensure that all agent terminals are connected to a PTSA

“viii. Ensure that all daily transactions per agent, including withdrawals, limits of transactions and balances in the float accounts of each agent, are sent electronically to NIBSS as a repot to the CBN. The template of this report will be sent to principals.”

The CBN stated that, as outlined in the guidelines for regulating agent banking and agent banking relationships in Nigeria, principals will be held fully accountable for any actions or omissions by their agents concerning agent banking services.

The apex bank further cautioned that it will carry out oversight activities, such as unannounced back-end configuration checks, to ensure strict adherence to the rules.

It warned that any violation of the directives in the circular will result in appropriate penalties, which may include monetary fines and/or administrative sanctions.