The Central Bank of Nigeria (CBN) has announced a new policy limiting cash-out transactions via Point of Sale (POS) agents to N100,000 per customer per day. This directive, issued on December 17, 2024, is part of the CBN’s strategy to enhance the adoption of electronic payments and bolster Nigeria’s cashless economy drive.
The circular, signed by Oladimeji Yisa Taiwo on behalf of the Director of Payments System Management, was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents. It outlines operational standards aimed at improving security, transparency, and monitoring within the agent banking sector.
Key Directives for POS Agents
- Daily Limits for Customers and Agents:
- Individual customers can withdraw a maximum of N100,000 per day.
- POS agents have a cumulative daily withdrawal limit of N1,200,000.
- Weekly withdrawals for customers are capped at N500,000.
- Operational Guidelines:
- Agents must separate banking activities from other merchant services and use the approved Agent Code 6010 for all transactions.
- Transactions must be conducted exclusively through float accounts linked to principal institutions.
- Agents must connect their terminals to the Payments Terminal Service Aggregator (PTSA) and report daily transactions to the Nigerian Inter-Bank Settlement System (NIBSS).
- Oversight and Monitoring:
- Institutions are required to monitor accounts linked to agents’ BVNs for unauthorized activities.
- The CBN will conduct periodic audits to ensure compliance, with violations attracting fines and administrative sanctions.
Implications of the New Policy
The policy is designed to reduce fraud, improve accountability, and enhance the use of electronic payment systems. However, it could pose challenges for POS operators, particularly those in rural areas where access to banking services is limited. Customers may also experience inconveniences due to restricted cash availability, especially during high-demand periods like the festive season.
Despite these concerns, the CBN remains committed to advancing its cashless policy and has called on stakeholders to adhere to the guidelines for a secure and efficient financial ecosystem.
This latest measure highlights the apex bank’s dedication to addressing Nigeria’s reliance on cash while promoting financial inclusivity through digital solutions.
