The Central Bank of Nigeria (CBN) has imposed a daily withdrawal limit of N100,000 per customer on point-of-sale (PoS) terminals, signaling a decisive step towards strengthening the nation’s cashless economy.
In a circular titled: “Cash-Out Limits for Agent Banking Transactions,” addressed to deposit money banks (DMBs), microfinance banks, mobile money operators and super-agents, the apex bank outlined the new restrictions as part of its strategy to address industry challenges, curb fraud, and establish uniform operational standards.
Key directives in the circular include: A weekly cash withdrawal cap of N500,000 per customer across all channels; a daily cash-out limit of N100,000 per customer on PoS terminals; Agents’ cumulative daily cash-out transactions must not exceed N1,200,000; Agent banking services must be distinct from merchant activities, with the approved Agent Code 6010 exclusively used for agent banking; All transactions must flow through designated agent float accounts maintained with principals; Monitoring of agents’ BVN-linked accounts to detect unauthorised transactions; Mandatory connection of all agent terminals to the Payments Terminal Service Aggregator (PTSA) and submission of daily transaction reports to the Nigeria Inter-Bank Settlement System (NIBSS) for onward reporting to the CBN.
The CBN emphasised that principals are fully responsible for the actions of their agents under the guidelines for agent banking and warned of oversight checks, including backend configuration inspections. Non-compliance with these directives, the apex bank warned, would attract penalties ranging from monetary fines to administrative sanctions.
The move, stakeholders note, highlights CBN’s commitment to modernising the financial sector while addressing operational vulnerabilities in agent banking.