The Central Bank of Nigeria (CBN) has introduced a cap of N100,000 daily for withdrawals from point-of-sale (PoS) terminals, targeting individuals to promote a shift towards a cashless economy.
Strategic Move Towards Cashless Policy
In a directive sent to all banks, microfinance institutions, mobile money operators, and super-agents, the CBN outlined measures to tackle fraud, standardize operations, and streamline banking services.
New Transaction Limits and Compliance
- Weekly and Daily Limits: The circular specifies that the maximum cash withdrawal per customer should not exceed N500,000 weekly across all channels. Daily transactions are now limited to N100,000 per customer through PoS terminals, with each agent’s daily cash-out capped at N1,200,000.
- Operational Directives: Agents must ensure their banking services are distinctly separate from other commercial activities, using the designated Agent Code 6010 for all transactions. All agent banking must be processed through specific float accounts monitored by the principal banks.
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Enhanced Monitoring and Accountability
- Account Surveillance: Banks are required to keep a close watch on accounts linked to agents’ Bank Verification Numbers (BVNs) to prevent unauthorized transactions outside the approved float accounts.
- Reporting and Connectivity: All PoS terminals must be connected to a Payment Terminal Service Aggregator (PTSA), and daily transaction details must be reported to the Nigerian Inter-Bank Settlement System (NIBSS) for oversight by the CBN.
Enforcement and Consequences
The CBN has made it clear that they will not only monitor compliance through random checks but also hold principals accountable for any breaches by their agents. Sanctions, both monetary and administrative, will be applied to those who fail to adhere to these new rules.
This policy reflects the CBN’s commitment to reducing physical cash circulation, enhancing digital transactions, and maintaining a robust regulatory environment amidst the push for a cashless Nigeria.
