The use of merchant point-of-sale (POS) terminals for deposits and withdrawals of funds by supermarkets, stores, and other small business owners has been prohibited by the Central Bank of Nigeria (CBN).
In an Exposure Draft of the Regulatory Framework for Agent Banking in Nigeria, the apex bank stated that owners of merchant POS machines are not permitted to carry out cash-in and cash-out transactions because such functions are reserved for a different category of agent banking operators.
While listing a list of prohibited activities for agents, the bank stated in the draft, “Agents shall not use purchase option PoS Terminals for cash-in and cash-out transactions.”
The guidelines cover agent banking operations and super agent licensing, as well as the minimum standards and requirements for the process of agent banking in the country, as well as the roles and responsibilities of stakeholders involved in agent banking.
It also stated that the agents were allowed to accept cash deposits and withdrawals have a limit they must not go beyond.
The CBN emphasized that agents must not “accept deposit or allow withdrawal above an amount which shall be prescribed, from time to time, by the bank,” and must not “charge customers fees outside regulated fees regime.”
The Central Bank explained that it came up with these rules “in the exercise of the powers conferred on the bank by Section 2 (d) of the Central Bank of Nigeria Act, 2007 and Section 57 (2) of the Banks and Other Financial Institutions Act (BOFIA), Laws of the Federation of Nigeria, 2004.”
The guidelines cover the operations of agent banking and the licensing of super agents, provide minimum standards and requirements for the process of agent banking in the country, and the roles and responsibilities of stakeholders involved in agent banking.