Central Bank of Nigeria (CBN) has limited cash withdrawals on Point-of-Sale (PoS) machines to ₦100,000 per customer daily. The apex bank announced the development in a circular titled: “Cash-Out Limits for Agent Banking Transactions” and sent to banks, microfinance institutions, mobile money operators as well as other financial agents.
It explained that the measure aimed at solving existing problems, preventing fraud, and creating consistent practices in the banking sector.
Details of the the directives include a weekly cash withdrawal limit of ₦500,000 per customer across all channels, a maximum daily cash-out limit of ₦100,000 for PoS transactions per customer, a cap of ₦1,200,000 for the total daily cash-out amount by each agent, a clear separation of agent banking from merchant activities, with proper agent codes used for transactions, an exclusive use of float accounts by agents for their banking activities, a regular monitoring of agent accounts linked to BVNs to prevent misuse, a connection of all agent terminals to a Payment Terminal Service Aggregator (PTSA), a daily reporting of all transactions, limits and balances to the Nigeria Inter-Bank Settlement System (NIBSS).
The apex bank stressed that agents’ supervising institutions, known as principals, would be fully accountable for any violations.
The bank also vowed to carry out surprise checks to ensure compliance with the rules, insisting that failure to follow the guidelines would be meted with fines or other penalties.
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