The Central Bank of Nigeria (CBN) has implemented a new policy aimed at advancing the cashless economy, introducing a daily cash-out transaction limit of N100,000 per customer for agency banking operators, commonly known as Point of Sale (PoS) operators. This directive, announced in a circular issued by the CBN’s Payments System Management Department and signed by Oladimeji Yisa Taiwo, seeks to encourage the use of electronic payment channels while addressing operational inefficiencies and combating fraud.
Under the new policy, customers are restricted to a maximum cash withdrawal of N500,000 per week across all payment channels. PoS operators, in addition to the individual daily transaction cap, are limited to a total daily cash-out threshold of N1,200,000 for all transactions.
The policy also mandates that all agency banking transactions must be conducted through designated float accounts operated by the agents’ principals, ensuring a clear distinction between agency banking and merchant activities. Agents are required to use the approved Agent Code 6010 for their operations, and principals are tasked with monitoring accounts linked to agents’ Bank Verification Numbers (BVNs) to identify and address unauthorized transactions.
To enhance oversight, the CBN requires all agent banking terminals to connect to the Payment Terminal Service Aggregator (PTSA) for effective monitoring. Operators are also expected to electronically submit daily transaction records, including withdrawals and float account balances, to the Nigeria Inter-Bank Settlement System (NIBSS) using a standardized reporting template provided by the CBN.
The circular emphasized that the principals of PoS operators will bear full responsibility for the actions and omissions of their agents. This directive aligns with the existing Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria.
The CBN has warned of stringent penalties, including fines and administrative sanctions, for non-compliance. It has also committed to enforcing these regulations through impromptu back-end checks and other supervisory measures.
According to the apex bank, these policies are integral to promoting trust in electronic payment systems, curbing fraud, and addressing challenges in the agency banking sector. The measures aim to standardize operations, improve transparency, and further entrench the cashless economy in Nigeria.