CBN Introduces Daily Withdrawal Cap For PoS, Cautions Operators On Compliance

CBN Introduces Daily Withdrawal Cap For PoS, Cautions Operators On ComplianceThe Central Bank of Nigeria (CBN) has introduced a daily withdrawal limit of ₦100,000 per customer for point-of-sale (PoS) terminals. This new policy was communicated to all deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents in a circular titled “Cash-out Limits for Agent Banking Transactions.”

The CBN stated that the intervention is aimed at addressing existing challenges, curbing fraud, and establishing consistent operational standards across the financial sector.

As per the circular, the following directives must be adhered to immediately:

1.Withdrawal Limits: Issuers are to set a weekly cash withdrawal limit of ₦500,000 per customer, irrespective of the channel used.

2.PoS Limits: Agent banking terminals must be configured to allow a daily maximum transaction limit of ₦100,000 per customer.

3.Cumulative Agent Limit: The daily cumulative withdrawal per agent should not exceed ₦1,200,000.

4.Separation of Agent and Merchant Activities: Agent banking services must be clearly differentiated from merchant activities, with the approved Agent Code 6010 used for all agent transactions.

5.Agent Float Accounts: All agent banking activities must be conducted through designated float accounts held with the principal.

6.Monitoring of Accounts: Agents’ BVN-linked accounts will be closely monitored to detect any transactions conducted outside the designated float accounts.

7.Terminal Connectivity: All agent terminals must be connected to a PTSA (Payment Terminal Service Aggregator).

8.Reporting: Daily transaction details, including withdrawals and account balances, must be electronically reported to NIBSS and forwarded to the CBN.

The CBN emphasized that principals are fully responsible for the actions and omissions of their agents in relation to agent banking services. Furthermore, the bank stated it would carry out regular oversight, including unscheduled checks of back-end configurations, to ensure compliance.

Any failure to comply with the directives will result in appropriate penalties, including monetary and administrative sanctions.

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