CBN Sets Daily N100,000 Withdrawal Limit on POS Transactions
The Central Bank of Nigeria (CBN) has announced a new policy limiting daily cash-out transactions via Point of Sale (POS) agents to N100,000 per customer.
The directive, issued on Tuesday and signed by Oladimeji Yisa Taiwo on behalf of the Director of the Payments System Management Department, aims to streamline agency banking operations, enhance fraud prevention, and promote the adoption of electronic payments in line with the CBN’s cashless economy goals.
Key Provisions of the Policy:
- Daily Limits:
- Individual customers cannot withdraw more than N100,000 daily, regardless of the channel.
- Each agent’s total cash-out transactions are capped at N1,200,000 per day.
- Weekly customer withdrawals are limited to N500,000.
- Operational Requirements:
- POS agents must separate their banking activities from other merchant services.
- Transactions must use the approved Agent Code 6010.
- Agents are required to connect their terminals to the Payments Terminal Service Aggregator (PTSA).
- Monitoring and Reporting:
- All agency banking activities must be conducted via designated float accounts maintained with principal institutions.
- Institutions must monitor accounts linked to agents’ BVNs to prevent unauthorized banking activities.
- Agents must submit daily transaction reports electronically to the Nigerian Inter-Bank Settlement System (NIBSS) using a CBN-provided reporting template.
- Enforcement and Penalties:
- Violations will attract monetary fines and administrative sanctions.
- The CBN will conduct periodic backend checks and oversight to ensure compliance.
The CBN stressed that principals, including Deposit Money Banks, Microfinance Banks, and Mobile Money Operators, remain accountable for the activities of their agents.
Implications:
The measure is part of the CBN’s broader efforts to secure Nigeria’s agent banking ecosystem while encouraging the transition to a more cashless society. However, it also raises concerns about its potential impact on rural and underserved areas where POS services play a critical role in financial inclusion.
The apex bank reiterated its commitment to fostering a secure, transparent, and efficient banking environment for all stakeholders.
