The Central Bank of Nigeria (CBN) has set a daily withdrawal limit of ₦100,000 for customers using point-of-sale (PoS) terminals, as part of a broader set of measures aimed at streamlining agent banking operations.
The new directive was communicated through a circular titled “Cash-out Limits for Agent Banking Transactions,” which was sent to all deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents across the country.
The the apex bank seeks to address ongoing challenges in the agent banking sector, curb fraud, and establish consistent operational standards across the financial ecosystem.
The circular outlines specific guidelines for the implementation of these changes, which must be adhered to immediately:
1. Cash Withdrawal Limit: The withdrawal limit per customer is set at ₦500,000 per week, regardless of the channel used (such as PoS terminals or other platforms).
2. Daily Transaction Limit: PoS terminals are now required to impose a daily cash-out limit of ₦100,000 per customer.
3. Cumulative Agent Limit: The total daily cash withdrawal limit for each agent must not exceed ₦1,200,000.
4. Connection to PTSA: All agent terminals must be connected to a Payment Terminal Service Aggregator (PTSA).
5. Electronic Reporting: Agents are required to electronically report all daily transactions, including withdrawals, transaction limits, and balances in agent float accounts, to the Nigerian Interbank Settlement System (NIBSS) for onward transmission to the CBN. A template for this report will be provided to the principals of agent banks.
The CBN emphasized that principals (i.e., the financial institutions responsible for the agents) will be held fully accountable for any actions or failures related to the operation of agent banking services. This includes ensuring that all agents comply with the outlined limits and reporting requirements.
Furthermore, the apex bank warned that it would conduct unannounced checks, including back-end configuration inspections, to ensure that agents are adhering to these guidelines. The CBN also stated that any violations of the new directives would result in significant penalties, including financial and administrative sanctions.
This move is part of the CBN’s broader efforts to regulate the growing agent banking sector, enhance the security of transactions, and standardize banking practices across various service channels.