The Central Bank of Nigeria (CBN) has imposed a limit of N100,000 on daily withdrawals from point-of-sale (PoS) terminals per customer.
In a circular to all deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents titled ‘Cash-out Limits for Agent Banking Transactions,’ the CBN said this move is part of its efforts to promote a cashless economy.
The circular outlined that the restriction aims to address challenges, fight fraud, and establish consistent operational standards across the sector.
The circular states: “To this end, ALL principals of agents must adhere to the following directives immediately:
i. Issuers must set a cash withdrawal limit (cash-out) of N500,000 per customer per week.
ii. All agent banking terminals should have a daily cash-out limit of N100,000 per customer.
iii. The daily cumulative cash-out limit for each agent should not exceed N1,200,000.
iv. Agent banking activities must be distinct from merchant activities, with agents using the approved Agent Code 6010.
v. Agency banking should only be conducted through agent float accounts maintained with principals.
vi. Monitor agents’ BVNs to identify any banking activities conducted outside designated float accounts.
vii. Ensure all agent terminals are connected to a PTSA.
viii. All daily transaction data, including withdrawals and float account balances, must be sent electronically to NIBSS for reporting to the CBN. A report template will be provided to principals.”
CBN clarified that principals will be held fully accountable for their agents’ actions under the guidelines for regulating agent banking in Nigeria.
The apex bank also warned that it would conduct surprise checks to ensure compliance and that violations of these directives would result in appropriate penalties, including fines and administrative sanctions.
