CBN Introduces Daily N100,000 Cash-Out Limit for POS Agents
New Cashless Policy Measures Aim to Combat Fraud and Promote Electronic Payments
The Central Bank of Nigeria (CBN) has announced new stringent regulations for Point-of-Sale (POS) agents, introducing a daily cash-out transaction limit of N100,000 per individual customer as part of its ongoing cashless policy initiative.
The circular, dated December 17, 2024, and signed by Oladimeji Taiwo, applies to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super-Agents, with immediate effect.
Key provisions of the new directive include:
- Individual customer withdrawals limited to N100,000 daily
- Agents restricted to a cumulative daily cash-out limit of N1.2 million
- Maximum customer weekly cash withdrawal capped at N500,000
The CBN mandated that all agency banking transactions be conducted exclusively through float accounts, with agents required to use the approved Agent Code 6010 for transactions. All banking terminals must connect to the Payments Terminal Service Aggregator, with daily transaction reports to be electronically submitted to the Nigerian Inter-Bank Settlement System.
The apex bank will conduct periodic oversight and impromptu backend configuration checks to ensure compliance. Violations may result in monetary fines and administrative sanctions.
The policy aims to address challenges in agent banking, prevent fraudulent activities, and accelerate the adoption of electronic payment channels. However, it is expected to significantly impact POS operators and customers, particularly in areas with limited banking infrastructure.
The CBN stressed that principal institutions will be fully responsible for their agents’ actions and urged stakeholders to adhere strictly to the new directives to support Nigeria’s transition to a cashless economy.
