The Central Bank of Nigeria (CBN) has restricted daily withdrawals on point-of-sale (PoS) terminals to N100,000 per individual.
In a notice addressed to all deposit money banks (DMBs), microfinance Banks, mobile money operators, and super-agents, under the heading ‘Cash-out constraints for agent banking operations,’ CBN stated that the limitation aligns with the bank’s persistent endeavors to promote a cashless economy.
Per the notice, these measures are designed to tackle recognized issues, mitigate fraud, and instate consistent operational benchmarks across the sector.
The notice states: “In light of the above, ALL principals of agents must adhere to the following instructions without delay:
1. Issuers must establish a cash withdrawal ceiling (cash-out) per customer (irrespective of channel) at N500,000.00 weekly,” as indicated in the notice.
2. Guarantee that all agent banking terminals are configured to a daily maximum transaction cash-out limit of N100,000.00 per customer.
3. Ensure that each agent’s cumulative daily cash-out limit does not surpass N1,200,000.00.
4. Confirm that agent banking services are distinctly separated from merchant operations and that agents utilize the authorized Agent Code 6010 for agent banking transactions.
5. Validate that agency banking activities are executed solely through agent float accounts held with the principals.
6. Oversee accounts linked to the agents’ BVN(S) to detect agent banking activities potentially conducted beyond the designated float account(s).
7. Confirm that all agent terminals are connected to a PTSA.
8. Ensure that all daily transactions per agent, including withdrawals, transaction limits, and balances in each agent’s float accounts are electronically submitted to NIBSS as a report to the CBN. The template for this report will be forwarded to the principals.”
CBN mentioned that as outlined in the guidelines for regulating agent banking and agent banking relationships in Nigeria, principals would be entirely accountable for all actions and inactions of their agents related to agent banking services.
The apex bank also cautioned that it would undertake supervisory activities, including unannounced back-end configuration checks to guarantee compliance.
CBN asserted that any violation of the directives outlined in the notice would incur relevant penalties, including financial and/or administrative disciplinary actions.