CBN Introduces Daily Cash Transaction Limit of N100,000 for POS Agents
The Central Bank of Nigeria (CBN) has announced a new cash transaction limit of N100,000 per customer per day for Point-of-Sale (POS) agents, a move aimed at advancing Nigeria’s cashless policy.
In a statement dated December 17, 2024, and signed by Oladimeji Taiwo on behalf of the Director of the Payments System Management Department, the apex bank instructed Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super-Agents, and other stakeholders to comply immediately with the new directives. The statement highlighted measures to ensure compliance, combat fraud, and promote the use of electronic payment systems in agency banking operations.
Key Directives for POS Agents
POS agents are now required to adhere to the following limits:
- Individual Customer Withdrawals: Maximum of N100,000 per day.
- Agent Daily Cumulative Cash-Out Limit: Capped at N1.2 million.
- Weekly Customer Cash Withdrawal Limit: Restricted to N500,000.
“All principals of agents must comply with these directives immediately,” the statement emphasized. It also mandated that agent banking operations be conducted solely through float accounts maintained with principal institutions to ensure uniformity and compliance.
Measures for Compliance
To facilitate compliance, the CBN outlined the following strategies:
- Use of Approved Agent Code: All agents must use Agent Code 6010 for transactions, keeping agent banking services separate from other merchant activities.
- Monitoring Agent Accounts: Principals of agent banking operations must oversee accounts linked to agents’ Bank Verification Numbers (BVNs) to detect unauthorized activities.
- Payment Terminal Integration: Banking terminals must connect to the Payments Terminal Service Aggregator, ensuring operational transparency.
- Daily Reporting: Agents are required to submit daily transaction reports, including withdrawal limits and float account balances, to the Nigerian Inter-Bank Settlement System using the CBN-provided reporting template.
Penalties for Non-Compliance
The CBN warned that any breach of the directive would attract penalties, including monetary fines and administrative sanctions. Additionally, principals of agency banking operations will be held accountable for the actions and omissions of their agents.
Monitoring and Enforcement
The apex bank announced plans for timely monitoring and backend configuration checks to ensure compliance. These checks aim to address challenges in agent banking, enhance the adoption of electronic payment channels, and prevent fraudulent activities.
Advancing Nigeria’s Cashless Policy
In its conclusion, the CBN called on all stakeholders to adhere strictly to the directives, emphasizing that the measures are critical to the smooth implementation of the policy and the advancement of Nigeria’s cashless economy. With this initiative, the CBN seeks to streamline agency banking operations, promote electronic transactions, and safeguard the financial ecosystem from fraud and other malpractices.
