CBN Limits PoS Withdrawals to N100,000 Daily Per Customer

The Central Bank of Nigeria (CBN) has introduced a daily cash withdrawal limit of ₦100,000 per customer for Point-of-Sale (PoS) transactions.

This was announced in a circular addressed to Deposit Money Banks (DMBs), Microfinance Banks, Mobile Money Operators, and Super-Agents. The directive, titled “Cash-Out Limits for Agent Banking Transactions,” aligns with the CBN’s ongoing drive toward a cashless economy.

The circular highlighted the CBN’s efforts to address operational challenges, combat fraud, and establish standardized practices across the financial sector.

Key Directives from the CBN:

  1. Weekly Withdrawal Cap:

A maximum cash withdrawal of ₦500,000 per customer per week, regardless of the channel used.

  1. Daily PoS Limit:

PoS terminals are now limited to a daily cash-out of ₦100,000 per customer.

  1. Agent Transaction Cap:

An agent’s cumulative daily cash-out transactions must not exceed ₦1.2 million.

  1. Separation of Activities:

Agent banking services must be distinct from merchant activities, with all agent banking transactions using the approved Agent Code 6010.

  1. Float Account Oversight:

All agent transactions must be conducted via float accounts maintained with the principal, and these accounts will be monitored for compliance.

  1. Reporting to CBN:

Agents are required to electronically report daily transactions, including balances and transaction limits, to the Nigeria Inter-Bank Settlement System (NIBSS).

Accountability and Enforcement

The CBN emphasized that principals (banks and financial institutions overseeing agents) would be held accountable for the actions and omissions of their agents.

The apex bank warned that it would conduct routine and unannounced inspections to ensure compliance, including back-end configuration checks. Breaches of these directives will result in penalties, which may include monetary fines and administrative sanctions.

This move by the CBN is part of a broader effort to transition Nigeria into a more cashless society while reducing fraud and streamlining agent banking operations.

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