The Central Bank of Nigeria (CBN) has introduced limits on Point of Sale (PoS) withdrawals, capping daily transactions at N100,000 per customer. This new measure aims to promote a cashless economy, combat fraud, and enforce consistent operational standards, with penalties for non-compliance.
The Central Bank of Nigeria (CBN) has introduced a new regulation limiting daily withdrawals on Point of Sale (PoS) terminals to N100,000 per customer. This move is part of the CBN's push to promote a cashless economy, reduce fraud, and standardize operations across financial institutions. The directive, communicated through a circular to deposit money banks, microfinance banks, mobile money operators, and super-agents, also sets weekly withdrawal limits at N500,000 per customer. Additionally, each agent’s cumulative cash-out limit is capped at N1,200,000 per day.
The CBN has also emphasized the need for a clear separation between agent banking and merchant activities, as well as the use of approved agent codes. Agents are required to ensure transactions are processed through agent float accounts, with daily transaction limits and balances electronically reported to the Nigeria Inter-Bank Settlement System (NIBSS).
To ensure compliance, the CBN will monitor agents and conduct surprise checks on their systems. Any breaches of the regulations will incur penalties, including monetary fines or administrative sanctions. The CBN stressed that principals, such as banks and mobile operators, would be held accountable for any violations by their agents. This move is expected to streamline agent banking services while ensuring greater transparency and security in cash transactions across Nigeria.
