The Central Bank of Nigeria (CBN) has announced a new policy imposing a daily cash withdrawal limit of N100,000 for customers using Point of Sale (POS) agents.
The directive, signed by Oladimeji Yisa Taiwo, seeks to improve agency banking, promote electronic payments, and support Nigeria’s cashless economy transition.
Released on Tuesday, the circular specifically targets Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and super agents.
It underscores the need for standardized operational practices, reinforced fraud prevention measures, and improved oversight within the agent banking sector.
The Central Bank of Nigeria requires immediate compliance from all stakeholders to ensure efficiency and security.
The new policy mandates POS agents to limit individual customer withdrawals to N100,000, regardless of the withdrawal method used.
Agents must limit total cash-out transactions to N1,200,000 daily, while customers face a weekly withdrawal cap of N500,000.
Agents must clearly separate banking services from other merchant activities and use the approved Agent Code 6010 for transactions.
All agency banking activities must take place through float accounts maintained with principal financial institutions.
These institutions will monitor accounts linked to agents’ Bank Verification Numbers (BVNs) to prevent unauthorized banking activity.
Moreover, agents must connect terminals to PTSA and electronically submit daily transaction reports to NIBSS.
Adherence to a specific reporting template provided by the CBN is mandatory.
The central bank also holds principals responsible for their agents’ actions and omissions in relation to banking services.
To ensure adherence to these regulations, the CBN will conduct periodic oversight that includes backend configuration checks.
This initiative supports the CBN‘s aim to promote a cashless economy and combat challenges of cash dependence and banking fraud.