CBN Sends Warning to PoS Operators, Banks Hoarding Cash as Nigerians Pay N400 to Withdraw N10k

• The CBN has warned banks and PoS operators that are disrupting the seamless circulation of the naira
• It is investigating the reported cases capable of undermining the smooth running of the economy
• This is on the back of a report that PoS operators are charging over 100% for cash withdrawal

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria (CBN) has delivered a solid warning to Deposit Money Banks (DMBs) and Point-Of-Sale (PoS) operators that are disrupting the seamless circulation of the naira.

The apex bank specifically frowns at such inappropriate actions by certain individuals.

Banks, PoS operators to be sanctioned

CBN disclosed that banks and PoS operators found wanting of such activities would be sanctioned.

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Reps tell POS operators to stop selling naira notes nationwide, give reasons

It stated:

"The attention of the Central Bank of Nigeria (CBN) has been drawn to alleged cases of collusion between some Deposit Money Banks (DMBs) and Point-Of-Sale (PoS) operators affecting the availability of cash and disrupting the seamless circulation of the Naira."

It also said it is investigating the reported cases capable of undermining the smooth running of the economy.

Meanwhile, the bank also encouraged the public to use alternative payment channels.

In addition, it asked the public to report any unauthorized activities, such as capping and hoarding, by banks or PoS agents to the CBN branch in their locations or via the link to address complaints and inquiries on the subject.

This comes after a report that PoS operators have hiked their charges to N400 for every N10,000 withdrawals instead of the N200 they previously charged.

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Senior bank workers give reasons for cash scarcity as POS operators set new withdrawal charges

Legit.ng reports that PoS operators allege that bank staff demand N10,000 for every 100,000 withdrawals.

Findings reveal that commercial banks have limited over-the-counter withdrawals to N20,000 and N50,000, respectively.

Across ATMs, banks have limited withdrawals to just N5,000 instead of the previous 100,000.

PoS operators devise new means of generating money as cash scarcity persists in Nigeria

Legit.ng reported that in recent weeks, findings have shown that a scarcity of cash in the financial system has made it difficult for banks to pay many consumers who wish to withdraw their money.

PoS operators have also hiked charges to over 100% following persistent cash scarcity in Nigeria.

Reports indicated that many PoS businesses have resorted to different alternatives to save their companies from shrinking.

Source: Legit.ng