ABUJA: The Central Bank of Nigeria (CBN) has introduced a daily cash-out limit of N100,000 per individual customer for Point-of-Sale (POS) transactions as part of new measures to advance the country’s cashless policy.
The new rules, outlined in a circular issued on December 17, 2024, aim to address challenges in agent banking, reduce fraudulent activities, and promote the use of electronic payment channels. These measures are designed to improve operational standards in the sector and encourage the wider adoption of digital payment systems.
The circular, signed by Oladimeji Taiwo on behalf of the Director of the Payments System Management Department, mandates immediate compliance by all relevant stakeholders, including Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super-Agents. The directive sets several guidelines to ensure uniformity in POS operations, including a N100,000 daily cash-out limit per customer.
In addition, POS agents are restricted to a total cash-out limit of N1.2 million per day, while customers are allowed a maximum of N500,000 in withdrawals per week. The circular also directs that all cash withdrawals be conducted through float accounts maintained with the principal institutions.
Furthermore, agents are required to use the designated Agent Code 6010 for transactions, with all terminals connected to the Payments Terminal Service Aggregator. Daily transaction reports, including withdrawal limits and float account balances, must be electronically submitted to the Nigerian Inter-Bank Settlement System using a template provided by the CBN.
The CBN also stressed the need for principals to monitor accounts linked to agents’ Bank Verification Numbers (BVNs) to detect any unauthorized transactions outside the approved float accounts. Principals will be held accountable for their agents’ actions, with potential penalties for non-compliance, including monetary fines and administrative sanctions.
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The policy is expected to have a significant impact on POS operators and customers, particularly in areas with limited banking infrastructure. Despite these challenges, the CBN emphasized the importance of adhering to the new regulations to ensure the smooth implementation of Nigeria’s cashless economy.
The CBN also revealed that more than 94% of the currency in circulation is held outside deposit banks, marking a substantial increase of N1.59 trillion compared to the previous year.
Data from the CBN shows that the amount of currency outside the banking system reached N4.29 trillion in October 2024, representing 94.3% of the total currency in circulation. This marks a 59% year-on-year increase from N2.70 trillion in October 2023.
