CBN Announces New Daily, Weekly Cash Withdrawal Limit for PoS Operators

• The CBN has set a new limit for cash withdrawal for PoS operators in a bid to checkmate ongoing cash scarcity and improve electronic transaction
• The apex bank has revealed plans to monitor and ensure compliance with the new policy nationwide
• In recent weeks, Nigerians have been struggling to get cash from the banks and ATMs across the country

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has announced a daily cash withdrawal limit of N100,000 per customer for point-of-sale (PoS) transactions.

Furthermore, the customers will now be restricted to a weekly cash withdrawal limit of N500,000.

The CBN disclosed this in a circular titled 'Circular on Cash-Out Limits for Agent Banking Transactions’ released late on Tuesday, December 17, 2024.

The policy was addressed to all Deposit Money Banks (DMBs), microfinance banks, mobile money operators, and super-agents.

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CBN explained that the directive seeks to enhance the use of electronic payment channels and address challenges in agent banking operations.

What CBN expects from PoS operators

Vanguard reports that in the circular, CBN stressed that the interventions were necessary to combat fraud, standardise PoS operations, and encourage electronic transactions.

Part of the circular reads:

“In view of the above, ALL principals of agents are to comply with the following directives immediately:

i. Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week,” the circular reads.

“ii. Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer.

“iii. Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00.

“iv. Ensure that agent banking services are clearly demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities.

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“v. Ensure that agency banking activities are consummated exclusively through agent float accounts maintained with the principals.

“vi. Monitor accounts associated with the agents’ BVN(S) with a view to identifying agent banking activities which may be conducted outside the designated float account(s).

“vii. Ensure that all agent terminals are connected to a PTSA

“viii. Ensure that all daily transactions per agent, including withdrawals, limits of transactions and balances in the float accounts of each agent, are sent electronically to NIBSS as a repot to the CBN. The template of this report will be sent to principals.”

Penalties for failing to adhere to CBN directives

To ensure compliance, the apex bank announced plans to conduct oversight activities, including impromptu checks on back-end configurations.

CBN said any breach of the directives would attract severe penalties, including monetary fines and administrative sanctions.

The CBN noted that principals would be held accountable for all actions and omissions of their agents in line with the guidelines for regulating agent banking in Nigeria.

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CBN affirms circulation of old naira notes

Earlier, Legit.ng reported that the Central Bank of Nigeria affirmed that the N200, N500, and N1,000 banknotes would remain valid even after December 2024.

The CBN, therefore, urged Nigerians to continue using the old naira banknotes for transactions, as they remain legal tender.

Sidi Hakama, the CBN's acting director of corporate communications, disclosed this in a statement.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng