Access, Union Bank, Zenith, Other Banks Begin Implementation of PoS Withdrawal Limits

• Commercial banks and other financial institutions have commenced the daily and weekly limits ordered by the Central Bank of Nigeria (CBN)
• The CBN revealed in a circular on December 17, 2024, that PoS transactions have been restricted to N100,000 daily and N500,000 weekly
• The development comes after the CBN also sanctioned nine banks for failing to load their ATMs with cash

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

One of Nigeria’s commercial banks, Union Bank, has commenced implementing the daily withdrawal limits on Point-of-Sale (PoS) terminals ordered by the Central Bank of Nigeria (CBN).

The implementation came amid a directive by the apex bank on December 17, 2024, restricting the daily withdrawal limit on PoS to N100,000 per customer.

CBN reveals reasons for cash withdrawal limits

CBN said the intervention aims to solve known challenges, fight fraud, and establish uniform industry-wide operational guidelines.

Read also

CBN launches new Foreign Exchange Code for FX transaction as banks begin sale of BTA, PTA

Six weeks after the CBN’s directives, Union Bank emailed its customers to inform them that the implementation of the daily withdrawal limit had begun. Customers are henceforth limited to a weekly withdrawal of N500,000 on PoS.

According to the email, the bank acted according to the apex bank’s orders to limit transactions on PoS to the stated amount daily and weekly.

Union Bank notifies customers

Union Bank’s announcement comes after CBN fined nine banks N3.1 trillion for failing to load their automated teller machines (ATMs) with cash and causing a cash squeeze during Christmas.

Union Bank, one of the banks fined by CBN, said its ATMs are also available for cash withdrawals, encouraging its customers to use alternative channels for their transactions.

“Our ATMs are also available for your cash withdrawals. We encourage you to use our alternative channels (UnionMobile, *826#, UnionOnline) for all your transactions,” the bank stated.

Read also

Access, Zenith, other Nigerian banks begin sale of dollars to Nigerians as naira falls slightly

TheCable reports that the financial institutions were sanctioned following spot checks by CBN, revealing non-compliance with its cash distribution guidelines.

Banks begin PTA, BTA payments to customers

The development comes after some commercial banks resumed selling their customers Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), showing a shift in FX availability after a prolonged supply shortage. 

The development came as financial institutions adjusted to market demands and the Central Bank of Nigeria (CBN) policy changes. 

Nigeria’s oldest financial Institution, First Bank, announced the resumption of FX sales for various international transactions. 

The bank stressed that customers can now access FX for PTA, BTA, Payment of school fees, medical bills and other authorised transactions under Form A. 

It said that Form A applications, including school fees, student upkeep, PTA, BTA, and medical bills, must be processed via the CBN’s trade monitoring systems (TRMS) portal, with all needed supporting documents uploaded to ensure a seamless application process.

Read also

UBA, Zenith, 7 other banks rush to settle USSD debts ahead of January 27 disconnection deadline

PoS operators to increase charges again

Legit.ng earlier reported that Point of sale (PoS) operators in Nigeria are considering another service charge increase after the Nigerian government approved a 50% tariff hike for telecommunications companies.

Ogunbayi Ganiyu, the national publicity relations officer of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), cited the effect of the tariff hike on their businesses.

He explained that PoS operators depend heavily on telecom services, especially mobile data, for their operations.

Source: Legit.ng