CBN has set a daily POS cash-out limit of N100,000 per customer.
The Central Bank of Nigeria (CBN) has introduced a daily transaction limit of N100,000 per customer for cash-out transactions by POS agents. This new policy, part of a directive issued on December 17, 2024, aims to streamline agency banking, promote electronic payments, and enhance the country’s cashless economy initiative. The circular was addressed to banks, microfinance institutions, mobile money operators, and super agents, emphasizing uniform standards, fraud prevention, and better monitoring.
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Key directives for POS agents include:
- Daily Cash-Out Limit: No individual customer can withdraw more than N100,000 daily.
- Cumulative Daily Limit: Each agent’s total cash-out transactions should not exceed N1,200,000 daily.
- Weekly Withdrawal Cap: Customers are limited to N500,000 per week.
- Separation of Activities: Agents must distinguish banking services from other merchant activities, using Agent Code 6010 for all transactions.
- Float Accounts: All agency banking must be conducted through float accounts maintained with principal institutions.
- Monitoring: Institutions must monitor agent accounts linked to BVNs for unauthorized activities.
- Real-Time Reporting: Agents must send daily transaction reports electronically to NIBSS through PTSA.
CBN will conduct periodic oversight and enforce severe penalties for violations. The policy aims to enhance security, reduce fraud, and promote a cashless economy, though it may pose challenges for operators and customers, especially in rural areas.
