The Central Bank of Nigeria (CBN) has imposed a daily withdrawal limit of N100,000 per customer on Point-of-Sale (PoS) terminals as part of its efforts to promote a cashless economy and curb financial fraud.
In a circular titled “Cash-out Limits for Agent Banking Transactions” and addressed to Deposit Money Banks (DMBs), Microfinance Banks, Mobile Money Operators, and Super-Agents, the CBN outlined new regulations aimed at standardizing operations within the agent banking industry.
The apex bank said the measures are intended to address challenges, combat fraudulent activities, and ensure uniform practices across the financial sector.
The circular specified that:
- Cash withdrawals (cash-out) per customer are limited to N500,000 per week, regardless of the transaction channel.
- Agent banking terminals must enforce a daily maximum transaction cash-out limit of N100,000 per customer.
- Each agent’s total daily cumulative cash-out limit must not exceed N1,200,000.
- Agent banking services must be distinctly separated from merchant activities, with agents required to apply the approved Agent Code 6010 for agent banking transactions.
- Agents must operate float accounts exclusively maintained with their principals for agency banking services.
- Principals are to monitor all agent accounts linked to the Bank Verification Number (BVN) to detect any unauthorized banking activities outside the designated float account.
- All agent terminals must be connected to a PTSA (Payment Terminal Service Aggregator).
- Daily transaction records, including cash-out activities, cumulative balances, and limits, must be electronically sent to the Nigeria Interbank Settlement System (NIBSS) as a report to the CBN.
The CBN emphasized that principals would be fully responsible and liable for any breaches of agent banking guidelines, as stated in the Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria.
To ensure compliance, the apex bank said it would conduct impromptu back-end configuration checks and oversight activities.
It also warned that failure to adhere to the directives would attract monetary fines and administrative sanctions.
