Did You Know CBN Has Limited POS Cash-Out Transactions to N100,000 Per Day for Customers?

On December 17, 2024, the Central Bank of Nigeria (CBN) implemented a new directive limiting daily cash-out transactions by Point of Sale (POS) agents to ₦100,000 per customer.

The policy, signed by Oladimeji Yisa Taiwo on behalf of the Director of the Payments System Management Department at the CBN, was detailed in a circular addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super agents.

According to the CBN, the directive seeks to:

• Establish operational uniformity within agency banking.
• Enhance fraud prevention measures.
• Improve transaction monitoring.
• Support Nigeria’s long-term goal of reducing dependency on cash-based transactions.

Dr. Taiwo stated that these changes are essential to ensuring a more secure and efficient agent banking ecosystem.

Key Directives for POS Agents

The CBN’s guidelines outlined several measures to be implemented immediately:

1. Daily Cash-Out Limit Per Customer

No customer can withdraw more than ₦100,000 in a day through POS terminals, irrespective of the channel.

2. Cumulative Daily Limit for Agents

POS agents are restricted to a daily total of ₦1,200,000 for all cash-out transactions.

3. Weekly Withdrawal Limit for Customers

Customers cannot exceed a cash withdrawal limit of ₦500,000 per week.

4. Separation of Merchant and Agent Banking Activities

POS agents must clearly demarcate their banking services from other merchant activities. The approved Agent Code 6010 must be used for all agency banking transactions.

5. Mandatory Use of Float Accounts

All transactions must be conducted exclusively through float accounts maintained with principal financial institutions.

6. Account Monitoring

Financial institutions must monitor accounts linked to agents’ Bank Verification Numbers (BVNs) to detect unauthorized transactions outside designated float accounts.

7. Real-Time Transaction Reporting

POS agents must connect their terminals to the Payments Terminal Service Aggregator (PTSA) and electronically report daily transactions to the Nigerian Inter-Bank Settlement System (NIBSS) using a template provided by the CBN.

The CBN emphasized that all principals remain responsible for ensuring that their agents adhere strictly to these directives. To monitor compliance:

• The CBN will conduct periodic oversight inspections, including backend configuration checks.
• Violations of the directive will result in monetary fines and administrative sanctions.

However , the daily cash-out limits present operational challenges for POS agents, especially those who rely on high transaction volumes to sustain their businesses. With a maximum daily transaction cap of ₦1,200,000, operators in high-demand areas may find it difficult to meet customer needs.

Furthermore, for customers the new directive may lead to reduced cash availability, particularly in rural areas with limited banking infrastructure. This issue becomes even more intense during festive seasons, when cash demand typically surges.