The Central Bank of Nigeria (CBN) has capped individual cash withdrawals on Point-of-Sale (PoS) transactions at ₦100,000 per day.
The directive, issued on 17 December 2024, aims to promote a cashless economy and enhance financial transparency in agency banking operations.
According to a circular signed by Oladimeji Yisa Taiwo on behalf of the Director of Payments System Management, the policy mandates all Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents to comply with immediate effect.
These measures aim to simplify agent banking services, prevent fraud, and encourage the adoption of electronic payment systems.
7 Key Highlights of the New Policy
- Daily Cash-Out Limit: PoS agents must limit individual customer withdrawals to ₦100,000 per day.
- Agent Cumulative Limit: Each PoS agent’s total daily transactions must not exceed ₦1.2 million.
- Weekly Withdrawal Cap: Customers can withdraw a maximum of ₦500,000 per week, regardless of the channel used.
- Separation of Services: PoS agents must clearly distinguish their banking activities from other merchant services and use an approved Agent Code (6010) for all transactions.
- Float Accounts Usage: Transactions must be exclusively conducted through float accounts maintained with principal institutions.
- Transaction Reporting: Agents are required to send daily transaction reports electronically to the Nigerian Inter-Bank Settlement System (NIBSS) using a template provided by the CBN.
- Monitoring and Compliance: Institutions are tasked with monitoring agent accounts and ensuring all transactions adhere to the guidelines.
Monitoring and Penalties
The CBN has stressed that it will conduct regular oversight to ensure compliance. Institutions responsible for agent banking services are required to monitor linked accounts and report any unauthorised activities. Violations of these directives will attract heavy penalties, ranging from monetary fines to administrative sanctions.
While the policy aims to bolster financial inclusion and reduce fraud, it could lead to challenges for PoS operators and customers. Agents who depend on high-volume transactions may face operational difficulties, while customers in rural areas might experience reduced access to cash, especially during peak periods like the festive season.
Towards a Cashless Economy
This directive is part of the CBN’s strategy to promote a cashless financial system in Nigeria. In addressing operational irregularities and encouraging the use of electronic payment methods, the apex bank hopes to enhance financial accountability and security.
The CBN has urged all stakeholders to comply with the new guidelines and contribute to a stronger and secure banking system in the country.
