From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) has set a daily transaction limit of N100,000 per customer for cash withdrawal transactions facilitated by Point of Sale (POS) agents.
This policy, stated in a new directive issued and signed by Oladimeji Yisa Taiwo on behalf of the Director of the Payments System Management Department at the CBN, is designed to improve agency banking operations, encourage the adoption of electronic payments, and facilitate the country’s shift towards a cashless economy.
The circular, released on Tuesday and directed at Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents, highlights the need for standardised operational practices, fraud prevention measures, and enhanced oversight within the agent banking industry.
The circular specifies several key actions that principals of agent banking operations must implement immediately. Failure to do so will attract severe penalties, including monetary fines and administrative sanctions.
One of the key directives mandates that POS agents must ensure no individual customer withdraws more than N100,000 daily, regardless of the withdrawal channel. Additionally, each agent’s total cash-out transactions are capped at N1,200,000 per day, while customers face a weekly withdrawal limit of N500,000.
Agents are also required to distinctly separate their banking services from other merchant activities and utilise the approved Agent Code 6010 for all transactions. All agency banking activities must be conducted through float accounts maintained with the principal institutions, which are responsible for monitoring accounts linked to agents’ BVNs to detect any unauthorised banking activities outside the designated float accounts.
Moreover, agents must connect their terminals to the Payments Terminal Service Aggregator (PTSA) and electronically submit daily transaction reports to the Nigerian Inter-Bank Settlement System (NIBSS), using a reporting template provided by the CBN.
The apex bank emphasised that all principals are accountable for their agents’ actions and omissions concerning banking services.
To ensure adherence to these regulations, the CBN will conduct periodic oversight, including backend configuration checks.
This initiative is part of broader efforts by the CBN to promote its cashless policy and tackle the challenges of heavy cash dependence in Nigeria’s economy. The policy also aims to reduce fraud linked to agent banking operations while encouraging the use of electronic payment channels.