CBN Sets N100,000 Daily Limit for POS Cash Withdrawals

The Central Bank of Nigeria (CBN) has set a new daily limit for cash withdrawals using Point of Sale (POS) systems. Each customer can now withdraw up to N100,000 per day.

This rule, announced on December 17, 2024, is part of efforts to promote electronic payments and move towards a cashless economy.

The directive affects Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Superagents, and is designed to ensure consistency, reduce fraud, and enhance monitoring within the agent banking system.

Key Guidelines for POS Operations:

Daily customer limit: No customer can withdraw more than N100,000 per day through any POS service.

Agent daily transaction limit: Each POS agent is limited to N1,200,000 in cash-out transactions per day.

Customer weekly withdrawal limit: Customers are limited to N500,000 in withdrawals per week.

Separation of services: Agents must separate their banking services from other business activities and use the designated Agent Code 6010 for all transactions.

Use of float accounts: All agency banking transactions must be conducted through float accounts set up with the agent’s principal financial institution.

Monitoring of agent activities: Financial institutions must monitor the accounts linked to agents’ Bank Verification Numbers (BVNs) to detect any unauthorised activities.

Mandatory transaction reporting: Agents must connect their terminals to the Payments Terminal Service Aggregator (PTSA) and report their transactions daily to the Nigerian Inter-Bank Settlement System (NIBSS) using a template provided by the CBN.

The CBN will perform periodic checks to ensure compliance with these rules. Non-compliance will result in penalties, including fines and administrative actions. 

These regulations aim to reduce fraud and encourage the use of digital payment methods, although they may challenge POS operators who depend on high-volume transactions and inconvenience customers, especially in areas with few banking services.

The CBN encourages all stakeholders to adhere to these guidelines to support the development of a secure and efficient cashless financial system in Nigeria.