CBN Enforces New Cash Withdrawal Limits on PoS Transactions

Our reporter

The Central Bank of Nigeria (CBN) has announced fresh restrictions on daily cash withdrawals through point-of-sale (PoS) terminals, capping transactions at N100,000 per customer per day. 

 

This policy, communicated via a circular titled "Cash-out Limits for Agent Banking Transactions," is part of the CBN's push to strengthen the cashless economy, tackle financial fraud, and establish consistent standards in agent banking operations across the country. 

 

The circular, addressed to deposit money banks, microfinance banks, mobile money operators, and super-agents, outlined key measures: 

1. Customers are restricted to N500,000 cash withdrawals across all channels per week. 

2. Agents can only process a maximum of N1.2 million in cumulative daily withdrawals. 

3. Clear distinctions must be maintained between agent banking activities and merchant transactions. 

4. All transactions must go through designated float accounts tied to the agent's principal institution. 

 

The CBN also emphasised monitoring agent accounts linked to their BVNs to ensure compliance and prevent unauthorised activities. Additionally, agents are required to send daily transaction reports electronically to the Nigeria Inter-Bank Settlement System (NIBSS) for oversight by the CBN. 

 

In its circular, the apex bank warned of strict penalties, including monetary fines and administrative sanctions, for institutions and agents found breaching these guidelines. The CBN stated that principals would be held fully accountable for any violations by their agents. 

 

This move aligns with the regulator’s broader strategy to reduce reliance on cash and improve transparency in Nigeria's financial system.