CBN units day by day cash-out restrict for POS transactions at N100,000 per customer 

The Central Bank of Nigeria (CBN) has launched a day by day transaction restrict of N100,000 per customer for cash-out transactions performed by Level of Sale (POS) brokers.

This coverage, a part of a brand new directive issued on December 17, 2024, and signed by Oladimeji Yisa Taiwo for the Director of the Funds System Administration Division on the CBN, goals to streamline company banking operations, encourage digital cost adoption, and improve the nation’s cashless economic system drive.

The round, which was launched on Tuesday and addressed to Deposit Cash Banks, Microfinance Banks, Cell Cash Operators, and Superagents, emphasizes the necessity for uniform operational requirements, fraud prevention, and improved monitoring inside the agent banking sector.

Key directives for POS brokers 

The round outlined a number of vital measures for principals of agent banking operations to implement instantly:

1. Every day cash-out restrict: POS brokers should guarantee no particular person customer withdraws greater than N100,000 day by day, whatever the channel.
2. Cumulative day by day restrict for brokers: Every agent’s whole cash-out transactions mustn’t exceed N1,200,000 day by day.
3. Weekly withdrawal cap for purchasers: Clients are restricted to a most money withdrawal of N500,000 per week.
4. Separation of agent and service provider actions: Brokers are required to obviously demarcate their banking companies from different service provider actions and use the accepted Agent Code 6010 for all transactions.
5. Unique use of float accounts: All company banking actions have to be performed by way of float accounts maintained with the principal establishments.
6. Necessary monitoring of agent accounts: Establishments should monitor accounts linked to brokers’ BVNs to establish any unauthorized banking actions exterior designated float accounts.
7. Actual-time transaction reporting: Brokers are required to attach their terminals to the Funds Terminal Service Aggregator (PTSA) and ship day by day transaction reviews to the Nigerian Inter-Bank Settlement System (NIBSS) electronically. The reporting template shall be supplied by the CBN.

CBN plans periodic oversight 

The CBN reiterated that every one principals stay answerable for the actions and omissions of their brokers in relation to banking companies.

• To make sure compliance, the apex bank will conduct periodic oversight, together with backend configuration checks.
• Violations of those directives will appeal to extreme penalties, together with financial fines and administrative sanctions. This measure underscores the CBN’s dedication to making sure a safe, clear, and environment friendly agent banking ecosystem.
• This intervention comes as a part of broader efforts by the CBN to advance its cashless coverage and tackle the challenges posed by the heavy reliance on money in Nigeria’s economic system.
• The coverage additionally seeks to curtail fraud related to agent banking operations whereas selling the usage of digital cost channels.

Implications for POS operators and prospects 

• Whereas the brand new coverage goals to boost safety and accountability, it might pose challenges for POS operators who depend on high-volume transactions to maintain their companies.
• Clients may additionally face inconveniences because of the lowered money availability, notably in rural areas with restricted entry to banks, particularly throughout this festive interval.
• The CBN has urged stakeholders to stick to the rules and contribute to the conclusion of a extra sturdy and cashless monetary system in Nigeria.