CBN sets N100,000 daily limit on POS withdrawals per customer

Onome Amuge

The Central Bank of Nigeria (CBN) has set a new limit of N100,000 per customer for daily withdrawals made through Point-of-Sale (POS) terminals.

This limit was communicated to all Deposit Money Banks (DMBs), Microfinance Banks, Mobile Money Operators, and Super-Agents in a recent circular titled “Cash-out Limits for Agent Banking Transactions,” according to which the restriction is in line with the CBN’s drive towards a more cashless society.

The circular, signed by Oladimeji Taiwo on behalf of the Director of the Payments System Management Department at the CBN, explained that these measures are designed to address known challenges within the industry, combat fraud, and establish standardised procedures for all players in the financial sector.

The apex bank mandates that POS agents must ensure that individual customer withdrawals do not exceed N100,000 daily, limiting each transaction to this threshold.

Furthermore, agents are subject to a cumulative daily limit of N1.2 million in cash-out transactions, while customers’ total cash withdrawal capacity is capped at N500,000 per week.

The circular stated: “All principals of agents are to comply with the following directives immediately:

“i. Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week,” the circular reads.

“ii. Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer.

“iii. Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00”

In a bid to enhance transparency and accountability in agency banking transactions, the Central Bank of Nigeria (CBN) has mandated that all such transactions must be processed exclusively through float accounts maintained with the principal institutions.

Moreover, the apex bank has ordered the segregation of agent banking services from other merchant activities, requiring agents to use the officially designated Agent Code 6010 for all agency banking transactions.

To strengthen oversight of agent banking transactions, the CBN has further mandated that all agent banking terminals must be integrated with the Payments Terminal Service Aggregator, allowing for more efficient tracking of cash flows.

In addition, principals of agent banking operations are required to submit daily transaction reports, including withdrawal limits and float account balances, using a reporting template provided by the CBN and transmitted through the Nigerian Inter-Bank Settlement System (NIBSS).

The CBN reiterated that the guidelines for regulating agent banking and agent banking relationships in Nigeria stipulate that principals are solely responsible and liable for any actions or omissions of their agents in relation to agency banking services.

The apex bank warned that it would carry out periodic oversight activities, including unannounced backend configuration checks, to ensure compliance with these guidelines and prevent any deviations from the established norms.

The CBN also emphasised that failure to comply with the stipulated directives would result in severe consequences, including both monetary and administrative sanctions.