The Central Bank of Nigeria (CBN) has announced a daily withdrawal limit of ₦100,000 per customer for Point-of-Sale (PoS) terminals. This measure, outlined in a circular titled “Cash-out limits for agent banking transactions,” is part of the apex bank’s efforts to promote a cashless economy, combat fraud, and ensure uniformity across the financial industry.

Key Directives in the Circular

The circular, addressed to deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents, outlined the following measures:

1. Weekly Withdrawal Limit: A maximum of ₦500,000 per customer across all channels.

2. Daily PoS Withdrawal Limit: ₦100,000 per customer.

3. Agent Cumulative Limit: Each agent’s daily cash-out transactions must not exceed ₦1,200,000.

4. Agent Code Enforcement: All agent banking activities must use the approved Agent Code 6010 and be distinct from merchant transactions.

5. Exclusive Float Accounts: Agent transactions must occur exclusively through designated float accounts maintained with their principals.

Monitoring and Compliance

The CBN emphasized the need for principals to monitor agents’ activities closely. This includes:

• Linking agent accounts to their BVNs to track activities outside designated float accounts.

• Ensuring all PoS terminals are connected to a Payment Terminal Service Aggregator (PTSA).

• Submitting daily electronic transaction reports to the Nigeria Inter-Bank Settlement System (NIBSS), based on a template provided by the CBN.

Oversight and Sanctions

The CBN warned that it would conduct impromptu checks on agent banking operations to ensure compliance. Principals would be held liable for any violations by their agents, with penalties for non-compliance ranging from monetary fines to administrative sanctions.

Industry Impact

The CBN stated that these directives aim to address challenges in the agent banking space, reduce fraud, and strengthen the cashless policy. However, stakeholders in the PoS and agency banking sectors may face operational adjustments as they align with the new restrictions.

This move reflects the CBN’s broader push for greater transparency and accountability in Nigeria’s financial ecosystem.