December 18, 2024
By Idris Buba
The Central Bank of Nigeria CBN has announced a daily transaction limit of N100,000 per customer and restricted cash-outs per day to a maximum of N1.2 million for transactions conducted by Point of Sale, POS, agents.
This policy, form part of a new directive issued by the CBN on December 17, 2024, and signed by Director of the Payments System Management Department at the CBN, Oladimeji Yisa Taiwo, the circular emphasizes the importance of leveraging technology to streamline transactions.
The circular, which was released on Tuesday and addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents, emphasizes the need for uniform operational standards, fraud prevention, and improved monitoring within the agent banking sector.
The circular outlined several critical measures for principals of agent banking operations to implement immediately:
READ MORE; Nigerians Groan As Cash Scarcity Compounds Economic Hardship
Accordingly, POS agents must ensure no individual customer withdraws more than N100,000 daily, regardless of the channel,
Each agent’s total cash-out transactions should not exceed N1,200,000 daily and Customers are restricted to a maximum cash withdrawal of N500,000 per week.
Further more, Agents are required to clearly demarcate their banking services from other merchant activities and use the approved Agent Code 6010 for all transactions.
While the new policy aims to enhance security and accountability, it may pose challenges for POS operators who rely on high-volume transactions to sustain their businesses.
Customers may also face inconveniences due to the reduced cash availability, however, the CBN has urged stakeholders to adhere to the guidelines and contribute to the realization of a more robust and cashless financial system.
