CBN caps PoS operators’ bank withdrawals, amid cash crunch for depositors
By Jeph Ajobaju, Chief Copy Editor
Point of Sale (PoS) operators can no longer withdraw from banks more than N100,000 per customer per day, according to a new directive from the Central Bank of Nigeria (CBN) to strengthen its push for a cashless economy.
The policy is contained in a circular issued by CBN Payments System Management Department, signed by Oladimeji Taiwo, and seeks to increase the use of electronic payment channels, address operational challenges, combat fraud, and establish uniform standards across the financial industry.
This comes as banks fail to stock their Automatic Teller Machines (ATMs) with cash for customers to withdraw and hardly pay out more than N20,000 over the counter per customer.
As a consequence, PoS operators have become the saving grace through whom people essentially buy naira at high costs that even got hiked two weeks ago.
And there are widespread media reports of rogues stealing from bank customers’ accounts by hacking data of electronic financial transactions.
The new circular said the CBN has mandated that issuers must limit cash withdrawals to a maximum of N500,000 per customer per week across all channels.
PoS terminals are to enforce a daily transaction cash-out limit of N100,000 per customer, with total daily cash-out transactions by an agent not exceeding N1,200,000 as part of measures to streamline cash handling and encourage the adoption of digital payment systems.
The CBN also directed that
- All agency banking activities be conducted exclusively through designated float accounts maintained by the agents’ principals.
- Operations of agency banking must be clearly separated from merchant activities, with agents required to use the approved Agent Code 6010 for transactions.
- Principals are to monitor accounts associated with agents’ Bank Verification Numbers (BVNs) to detect and address activities conducted outside designated float accounts.
- All agent banking terminals must be connected to the Payment Terminal Service Aggregator (PTSA) to allow effective monitoring.
- Daily transaction details, including withdrawals and float account balances, are to be electronically submitted to the Nigeria Inter-Bank Settlement System (NIBSS) as part of the reporting process.
The CBN said it will provide a standard reporting template to ensure consistency in data submitted by agency banking operators.
The circular stressed that
- Principals of PoS operators would bear full responsibility and liability for the actions and omissions of their agents in relation to agency banking services.
- This is in accordance with the Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria.
- The CBN reiterated its commitment to enforcing these measures through impromptu back-end configuration checks and other oversight mechanisms.
- Failure to comply with these directives will result in penalties, which may include monetary fines and administrative sanctions.
- These policies are essential for promoting trust in electronic payment systems, tackling fraud, and addressing inefficiencies in the agency banking sector.
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