The Central Bank of Nigeria (CBN) has introduced a daily withdrawal cap of N100,000 per customer for transactions conducted through Point-of-Sale (PoS) terminals.
This new measure is part of the CBN’s ongoing push towards a cashless economy, aimed at addressing challenges such as fraud and establishing consistent operational standards within the financial sector.
The CBN issued a circular outlining the withdrawal restrictions, which applies to all deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents.
The circular also specifies that the total daily cash-out limit for each agent should not exceed N1,200,000.
In the circular, the CBN emphasized the need to clearly distinguish agent banking services from merchant activities and mandated that agents must use the approved Agent Code 6010 for their banking operations.
Furthermore, agents are required to carry out transactions exclusively through float accounts maintained with the principal financial institutions.
The CBN also called for continuous monitoring of agents’ accounts through their Bank Verification Numbers (BVNs) to detect any irregularities or activities outside the designated float accounts.
Additionally, it was stipulated that all agent terminals must be connected to a Point of Transaction Switching Application (PTSA), and daily transaction data must be submitted electronically to the Nigeria Inter-Bank Settlement System (NIBSS) for reporting to the CBN.
To ensure compliance with the new regulations, the CBN has outlined penalties for violations, including both financial and administrative sanctions.
The central bank also stated it would undertake oversight activities, including unannounced backend checks to ensure that agents adhere to the new rules.
This measure is expected to further enhance the CBN’s efforts in fostering transparency and accountability in the financial services sector while advancing the country’s cashless economy agenda.
