CBN limits daily cash-out for PoS transactions to N100,000, N1.2 million for agents

• The Central Bank of Nigeria has limited daily cash-out for Point of Sale transactions to N100,000
• The bank also limited each customer's cash withdrawal on all channels to N100,000 and PoS agents to N1.2 million daily
• CBN also directed a clear distinction between agent services and merchant activities

The Central Bank of Nigeria (CBN) has introduced a new policy that limits daily transaction limit of N100,000 per customer for cash-out transactions conducted by Point of Sale (PoS) agents.

The apex bank also set each customer’s weekly cash withdrawal limit at N500,000 irrespective of channel, while each agent’s daily cumulative cash-out limit was pegged at N1.2 million

It stated this in a circular by Oladimeji Yisa Taiwo for the Director of the Payments System Management Department at the CBN, directed to all deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents, on Tuesday, December 17.

The CBN said the directive is in line with its cashless economy efforts, to streamline agency banking operations and encourage electronic payment adoption.

It said, “In view of the above, all principals of agents are to comply with the following directives immediately: Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week.

“Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer, and ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00.”

Agent services should be distinct from merchant activities

The CBN also directed banks to ensure that agent banking services are clearly distinguished from merchant activities, adding that agents apply the approved Agent Code 6010 for banking activities.

It added that all agency banking activities must be conducted through float accounts maintained with the principal institutions, which must monitor accounts linked to agents’ BVNs to identify any unauthorised banking activities outside the designated float accounts.

The directive also stated that agents are required to connect their terminals to the Payments Terminal Service Aggregator (PTSA) and send daily transaction reports electronically to the Nigerian Inter-Bank Settlement System (NIBSS). The reporting template will be provided by the CBN.

It stated, “Ensure that agency banking activities are consummated exclusively through agent float accounts maintained with the principals, monitor accounts associated with the agents’ BVN(s) with a view to identifying agent banking activities which may be conducted outside the designated float account(s).

“Ensure that all agent terminals are connected to a PTSA and ensure that all daily transactions per agent, including withdrawals, limits of transactions, and balances in the float accounts of each agent, are sent electronically to NIBSS as a report to the CBN. The template of this report will be sent to principals.”

CBN plans periodic monitoring and penalties for defaulters

The CBN maintained that principals would be held fully responsible and liable for all actions and omissions of their agents related to agent banking services.

The apex bank said it would conduct period oversight activities that will include impromptu back-end configuration checks to ensure compliance.

The circular also noted that a breach of the directives will attract appropriate penalties, including monetary and/or administrative sanctions.

CBN making efforts to limit cash scarcity, naira sale

The apex bank has been committed to reducing the recent wave of cash scarcity in the country despite a whopping N4.29 trillion of currency in circulation being outside the banking system.

To halt the illicit flow of minted banknotes to currency hawkers and economic agents that commodify naira banknotes, the CBN announced a N150 million fine at first instance per branch of Deposit Money Banks found guilty.

The apex bank, in a circular on November 13, 2024, announced stringent penalties for banks found culpable of hoarding or diverting cash to hawkers.

The CBN said any bank linked to cash seized from hawkers would face a fine of 10 per cent on the total value of the withdrawn funds, and subsequent violations would attract an incremental penalty of five per cent.

It also warned banks against cash hoarding and diversion, as such practices limit access to cash and undermine its efforts to ensure an efficient and effective cash flow.

CBN to start fining banks over cash scarcity at ATMs

Meanwhile, TheRadar reported that the Central Bank of Nigeria (CBN) issued a stern warning to financial institutions over the ongoing cash scarcity at Automated Teller Machines (ATMs) across the country. 

CBN governor, Olayemi Cardoso, announced that penalties would be imposed on erring banks and other financial players during his address at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria on Friday, November 29.