CBN Imposes Daily Cash-Out Limit of N100,000 for POS Transactions
This directive, effective immediately, aims to promote electronic payment adoption and strengthen Nigeria’s cashless economy initiatives.
The policy, issued on December 17, 2024, was signed by Oladimeji Yisa Taiwo on behalf of the Director of Payments System Management at the CBN. It was communicated to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents, emphasizing the need for operational consistency, fraud prevention, and enhanced oversight within agency banking.
Key Provisions for POS Operators
The circular highlights several measures for POS agents and their principals to implement immediately:
Daily Withdrawal Cap: Customers are restricted to a maximum of N100,000 cash-out per day, regardless of the channel used.
Agent Transaction Limit: POS agents cannot exceed N1.2 million in cumulative daily cash-out transactions.
Weekly Withdrawal Limit: Customers are limited to withdrawing a total of N500,000 per week.
Separation of Services: POS agents must clearly differentiate their banking services from other business activities and use the approved Agent Code 6010 for all transactions.
Float Account Exclusivity: All agency banking transactions must be conducted through float accounts linked to the agent’s principal financial institution.
BVN-Linked Monitoring: Institutions must monitor accounts tied to agents’ Bank Verification Numbers (BVNs) to prevent unauthorized activities outside designated float accounts.
Real-Time Reporting: POS agents are required to connect their terminals to the Payments Terminal Service Aggregator (PTSA) and electronically report daily transactions to the Nigerian Inter-Bank Settlement System (NIBSS) using a template provided by the CBN.
CBN’s Oversight Measures
The CBN stated that principals of agent banking operations are accountable for their agents’ activities and any violations of the new directives. The apex bank plans to conduct periodic compliance checks, including backend configuration audits.
Non-compliance will attract severe penalties, including fines and administrative sanctions, underscoring the CBN’s commitment to ensuring a secure and transparent agent banking ecosystem.
The rationale for the Policy
The policy forms part of the CBN’s broader strategy to reduce reliance on cash transactions, promote digital payments, and address fraud risks within agent banking operations. The directive aligns with the central bank’s ongoing cashless policy efforts to modernize Nigeria’s financial system.
Challenges for Operators and Customers
While the CBN’s new policy aims to enhance accountability and security, it poses challenges for POS operators who rely on high-volume transactions to sustain their businesses. Customers, particularly those in rural areas with limited banking access, may face difficulties in meeting their cash needs, especially during the festive season when demand for cash increases.
The CBN has called on all stakeholders to comply with the new regulations and collaborate in building a more robust and cashless financial system in Nigeria.
Reference
CBN Imposes Daily Cash-Out Limit of N100,000 for POS Transactions
yehx8x