- The Central Bank of Nigeria capped daily transactions for PoS agents at N1.2 million and individual customers at N100,000
- These measures aim to enhance electronic payments, prevent fraud, and standardize operations within the agent banking sector in Nigeria
The Central Bank of Nigeria (CBN) has introduced new restrictions for Point of Sale (PoS) agents, capping daily transaction limits at N1.2 million for agents and N100,000 for individual customers.
This development, announced in the Circular on Cash-Out Limits for Agent Banking Transactions, was signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Director of Payments System Management.
The policy aligns with the bank’s ongoing efforts to promote a cashless economy.
Key Highlights of the Policy
- Daily Cash-Out Limits
- PoS agents: N1.2 million.
- Individual customers: N100,000 per day.
- Weekly cash withdrawal for customers is capped at N500,000.
- Agent Banking Activities
- Agent banking services must be separated from merchant activities.
- Agents are required to use the approved Agent Code 6010 for all transactions.
- Exclusive Use of Float Accounts
- All agency banking transactions must be conducted through float accounts maintained with principal financial institutions.
This aligns 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. Agents must apply the approved Agent Code 6010 for agent banking activities.
The circular addressed deposit money banks, microfinance banks, mobile money operators, and superagents. It stressed the importance of uniform operational standards, fraud prevention, and improved monitoring within the agent banking sector.
The circular further stated that customers’ weekly withdrawal cap is N500,000. At the same time, agents must separate 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.