CBN restricts PoS agents to N1.2m daily transaction, N100,000 for customers

The Central Bank of Nigeria (CBN) has restricted Point of Sales (PoS) agents to a daily transaction limit of N1.2 million. The bank also introduced a daily transaction limit of N100,000 per customer for cash-out transactions conducted by the agents. This implies that customers can only withdraw N100,000 daily from PoS agents. The apex bank […]

The Central Bank of Nigeria (CBN) has restricted Point of Sales (PoS) agents to a daily transaction limit of N1.2 million.

The bank also introduced a daily transaction limit of N100,000 per customer for cash-out transactions conducted by the agents.

This implies that customers can only withdraw N100,000 daily from PoS agents.

The apex bank revealed this in its ‘Circular on Cash-Out Limits for Agent Banking Transactions,’ released on Tuesday and signed by Oladimeji Yisa Taiwo for the Director of the Payments System Management Department at the CBN.

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It noted that this is in line with its ongoing efforts to advance a cashless economy.

“The bank hereby releases the following policy interventions, which have become necessary to enhance the use of electronic payment channels for agency banking operations,” the circular read.

According to the CBN, agent banking services are now to be demarcated from merchant activities and agents must apply the approved Agent Code 6010 for agent banking activities.

The circular addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators and Superagents, stressed the importance of uniform operational standards, fraud prevention, and improved monitoring within the agent banking sector.

The circular further spelled out weekly withdrawal cap for customers at N500,000 per week while agents are required to clearly demarcate their banking services from other merchant activities and use the approved Agent Code 6010 for all transactions. 

Exclusive use of float accounts: All agency banking activities must be conducted through float accounts maintained with the principal institutions.