CBN Imposes A Daily Cash-Out Cap Of N100,000 Per Customer For POS Transactions

A daily transaction restriction of N100,000 per customer has been implemented by the Central Bank of Nigeria (CBN) for cash-out transactions carried out by Point of Sale (POS) agents.

This policy, which was signed by Oladimeji Yisa Taiwo, the Director of the CBN’s Payments System Management Department, as part of a new directive issued on December 17, 2024, intends to improve the nation’s push towards a cashless economy, promote the adoption of electronic payments, and streamline agency banking operations.

Addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents, the circular was issued on Tuesday and highlights the necessity of increased monitoring, fraud prevention, and consistent operational standards in the agent banking industry.

Important instructions for POS agents

The circular listed a number of crucial actions that agent banking operation principals must take right away:

1. Cash-out limit each day: Regardless of the channel, POS agents are required to make sure that no single consumer withdraws more than N100,000 each day.
2. Agents’ cumulative daily limit: The daily amount of cash-out transactions for each agent should not be more than N1,200,000.
3. Customers’ weekly withdrawal cap: The weekly maximum cash withdrawal amount for customers is N500,000.
4. Keeping merchant and agency operations apart: Agents must use the authorized Agent Code 6010 for all transactions and clearly distinguish their banking services from other merchant activity.
5. Use of float accounts exclusively: Every agency banking operation needs to be carried out using float accounts that are kept with the big banks.
6. Agent accounts must be monitored: To spot any illegal banking activity outside of approved float accounts, institutions must keep an eye on the accounts connected to agents’ BVNs.
7. Reporting on transactions in real time: Agents must electronically transmit daily transaction reports to the Nigerian Inter-Bank Settlement System (NIBSS) and link their terminals to the Payments Terminal Service Aggregator (PTSA). The CBN will supply the reporting template.

CBN arranges for recurring supervision

In regard to banking services, the CBN reaffirmed that all principals are nevertheless liable for the deeds and inactions of their agents.

• The apex bank will carry out routine oversight, including backend configuration checks, to guarantee compliance.
• Serious consequences, such as monetary fines and administrative sanctions, will result from breaking these directives. This action demonstrates the CBN’s dedication to maintaining an agent banking ecosystem that is safe, open, and effective.
• This action is a component of the CBN’s larger initiatives to promote its cashless policy and solve the problems caused by Nigeria’s economy’s excessive reliance on cash.
• While encouraging the use of electronic payment channels, the policy also aims to reduce fraud related to agent banking operations.

Impact on customers and POS Operators

• The new policy may present difficulties for point-of-sale (POS) operators who depend on high transaction volumes to maintain their operations, even though its goal is to improve security and accountability.
• The decreased availability of cash may also cause problems for customers, especially in remote locations where banks are hard to reach, especially during this holiday season.
• The CBN has called on all parties involved to follow the rules and help make Nigeria’s financial system stronger and cashless.