The Central Bank of Nigeria (CBN) has introduced a new measure that imposes a daily withdrawal limit of N100,000 per customer on Point-of-Sale (PoS) transactions.
This policy is part of the apex bank’s broader effort to foster a cashless economy and address challenges related to fraud, as well as establish uniform operational standards across the financial industry. According to a circular issued by the CBN, this new restriction is intended to regulate agent banking activities more effectively and ensure that the operations of PoS terminals align with the ongoing financial reforms in the country.
In the circular, the CBN emphasized that all financial institutions, including deposit money banks, microfinance banks, mobile money operators, and super-agents, must comply with the new guidelines immediately. One of the key points of the new policy is that each customer can only withdraw up to N100,000 per day from PoS terminals, regardless of the channel used. Additionally, there is a weekly withdrawal limit of N500,000 per customer, and agents are restricted from processing transactions that exceed N1,200,000 per day in total. This ensures that cash-outs are carefully monitored and kept within manageable limits to curb potential risks associated with large withdrawals.
The CBN also laid out specific operational requirements for agent banking services, stating that these services should be clearly differentiated from merchant activities. It also instructed agents to apply a specific Agent Code (6010) for all transactions related to agent banking. Furthermore, agent banking activities must be conducted exclusively through agent float accounts held with the principals (i.e., financial institutions). These new directives are aimed at ensuring transparency and maintaining a secure and regulated environment for agent banking transactions.
In addition to the withdrawal limits, the CBN stressed the importance of monitoring and compliance. Agents must ensure that their terminals are connected to a PoS Terminal Service Application (PTSA), which is essential for secure transaction processing. Moreover, the CBN requires agents to report their daily transaction activities, including withdrawals, transaction limits, and float account balances, electronically to the National Interbank Settlement System (NIBSS), which in turn will transmit the data to the CBN for oversight.
The CBN has made it clear that financial institutions (principals) will be held fully responsible for the actions and omissions of their agents in relation to agent banking services. The central bank also indicated that it would conduct impromptu checks and back-end configuration inspections to ensure that agents and their principals comply with the new policy. Any breaches of the new guidelines, including non-compliance with the daily withdrawal limits or failure to report transactions, will attract appropriate penalties, which may include both monetary and administrative sanctions.
This policy is part of the CBN’s ongoing efforts to advance a cashless society, which is designed to reduce the reliance on cash transactions, streamline financial services, and enhance the overall efficiency of the banking sector. By regulating the operations of PoS terminals and agent banking activities, the CBN aims to create a more transparent, secure, and efficient financial ecosystem, while also curbing fraud and illegal activities that may arise from unchecked cash movements.
Ultimately, these changes are expected to contribute to the financial inclusion agenda in Nigeria by encouraging the use of digital platforms for financial transactions.
