CBN Restricts POS Withdrawals to ₦100,000 Daily in New Cashless Policy Drive

The Central Bank of Nigeria (CBN) has imposed a daily withdrawal limit of ₦100,000 per individual customer for Point-of-Sale (POS) transactions, aiming to bolster its cashless policy and streamline agency banking operations nationwide.

The directive, outlined in a circular dated December 17, 2024, was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super-Agents. Signed by Oladimeji Taiwo on behalf of the Director of the Payments System Management Department, the circular urged stakeholders to implement the policy immediately.

The circular emphasized, “Issuers must enforce a weekly cash withdrawal limit of ₦500,000 per customer and ensure that POS terminals are configured for a maximum daily transaction limit of ₦100,000. Additionally, agents’ cumulative cash-out limit should not exceed ₦1.2 million daily.”

The CBN also mandated that agency banking services be conducted exclusively via float accounts maintained with principal institutions to ensure accountability. To separate agency banking from other merchant activities, the approved Agent Code 6010 must be used for all transactions.

All agent banking terminals are now required to connect with the Payments Terminal Service Aggregator for enhanced monitoring. Daily transaction reports, including withdrawal data and float account balances, must be submitted electronically to the Nigerian Inter-Bank Settlement System (NIBSS) using templates provided by the apex bank.

The directive tasked principals of agent banking operations with monitoring accounts linked to their agents’ Bank Verification Numbers (BVNs) to identify unauthorized activities. The CBN further warned, “Any breaches of this directive will result in penalties, including monetary fines and administrative sanctions.”

Periodic oversight and impromptu backend checks will also be conducted to ensure strict compliance with the guidelines.

The CBN noted that the measures are designed to curb fraudulent activities, enhance operational transparency, and encourage the adoption of electronic payment systems. However, concerns have been raised about the potential impact on POS operators and customers, especially in areas with limited banking infrastructure.

Commenting on the policy, an industry expert said, “While this policy promotes a cashless economy, it may disrupt daily transactions for small businesses and rural communities where banking alternatives are scarce.”

The apex bank, however, called on stakeholders to adhere strictly to the directive, emphasizing that collective efforts are required to drive Nigeria’s cashless economy forward.

The CBN reassured Nigerians that these guidelines are part of its broader strategy to improve the efficiency and security of the nation’s payment systems.