The Central Bank of Nigeria, CBN, has explained the introduction of a N100,000 daily withdrawal limit on point-of-sales, PoS, terminals as part of efforts to promote a cashless economy.

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Also, CBN added, the measure will address operational challenges, reduce fraud, and establish uniform standards across the industry.

Recall that CBN announced the measure in a circular titled “Cash-out limits for agent banking transactions,” to all deposit money banks, DMBs, microfinance banks, mobile money operators, and super-agents. 

In the circular, CBN outlined several key directives that all agents must follow.

A directive stated that agent banking terminals must be configured with a daily maximum transaction cash-out limit of N100,000 per customer.

And the cumulative daily cash-out for each agent cannot exceed N1,200,000.

The CBN further instructed that “agent banking services are clearly demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities.”

The bank has also warned that any violations of these directives will “attract appropriate penalties including monetary and/or administrative sanctions.”

Vanguard News