The Central Bank of Nigeria (CBN) has introduced a new policy to strengthen its drive towards a cashless economy, setting a daily maximum transaction cash-out limit of N100,000 per customer for agency banking operators, also known as Point of Sale (PoS) operators.
This directive, outlined in a circular issued on Tuesday by the CBN’s Payments System Management Department and signed by Oladimeji Yisa Taiwo, aims to enhance the use of electronic payment channels, address operational challenges, combat fraud, and establish uniform standards across the industry.
According to the circular, the CBN has mandated that issuers must limit cash withdrawals to a maximum of N500,000 per customer per week across all channels.
Additionally, PoS terminals are to enforce a daily transaction cash-out limit of N100,000 per customer, with the total daily cash-out transactions by any agent not exceeding N1,200,000. These measures are designed to streamline cash handling and encourage the adoption of digital payment systems.
To ensure transparency and proper oversight, the CBN has directed that all agency banking activities be conducted exclusively through designated float accounts maintained by the agents’ principals. Furthermore, the operations of agency banking must be clearly separated from merchant activities, with agents required to use the approved Agent Code 6010 for transactions.
Principals are also tasked with monitoring accounts associated with agents’ Bank Verification Numbers (BVNs) to detect and address activities conducted outside the designated float accounts.
All agent banking terminals must be connected to the Payment Terminal Service Aggregator (PTSA) to allow effective monitoring.
Daily transaction details, including withdrawals and float account balances, are to be electronically submitted to the Nigeria Inter-Bank Settlement System (NIBSS) as part of the reporting process. The CBN will provide a standard reporting template to ensure consistency in the data submitted by agency banking operators.
The circular stressed that principals of PoS operators would bear full responsibility and liability for the actions and omissions of their agents in relation to agency banking services. This is in accordance with the Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria. The CBN reiterated its commitment to enforcing these measures through impromptu back-end configuration checks and other oversight mechanisms.
Failure to comply with these directives will result in penalties, which may include monetary fines and administrative sanctions. The CBN also stated that these policies are essential for promoting trust in electronic payment systems, tackling fraud, and addressing inefficiencies in the agency banking sector.
