The Central Bank of Nigeria (CBN) has introduced a daily cash withdrawal limit of N100,000 per customer for transactions conducted through Point-of-Sale (PoS) terminals. This directive, part of efforts to bolster the cashless economy and mitigate financial fraud, was outlined 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 circular establishes stringent regulations aimed at standardizing agent banking operations and curbing illicit financial activities.
The new policy sets weekly withdrawal limits and mandates operational compliance for agents. Specifically:
1. Cash withdrawals (cash-out) per customer are capped at N500,000 weekly, irrespective of the transaction channel.
2. A maximum daily cash-out transaction limit of N100,000 per customer is enforced on PoS terminals.
3. Total cumulative daily cash-out transactions for each agent are restricted to N1.2 million.In addition, the CBN has mandated that agent banking services be distinctly separated from merchant activities. To ensure transparency, agents must use the approved Agent Code 6010 for all transactions and operate float accounts solely maintained with their principals for agency banking purposes.
The circular further stipulates that principals, including banks and mobile money operators, are to monitor all agent accounts linked to the Bank Verification Number (BVN). This oversight aims to detect and prevent unauthorized financial transactions outside the designated float accounts. Moreover, all agent terminals must be connected to a certified Payment Terminal Service Aggregator (PTSA) to enable real-time monitoring and reporting.
The apex bank has also directed that daily transaction records, including cash-out activities and cumulative balances, be electronically reported to the Nigeria Interbank Settlement System (NIBSS).
To reinforce compliance, the CBN announced plans for impromptu back-end system checks and other oversight measures. It further warned that principals would be held accountable for any violations of agent banking guidelines as outlined in the “Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria.”
Failure to adhere to these directives, the CBN stated, would attract monetary fines and administrative sanctions.
This development aligns with the CBN’s broader strategy to transition Nigeria to a cashless economy, curb fraudulent practices in the financial sector, and promote uniformity in agent banking operations. Financial institutions and agents have been urged to comply with the new regulations to avoid penalties and ensure the smooth implementation of the policy.
By Saifullahi Muhammad
