In an effort to curb the lingering cash crunch being experienced across the country, the Central Bank of Nigeria, CBN, has introduced a daily cash-out transaction.
According to the apex bank, the daily limit per individual customer for Point-of-Sale agents is now N100,000. While Issuers shall set a cash withdrawal limit (cash out) per customer at N500, 000 per week.
This was contained in a circular sent by CBN to all Deposit Money Banks (DMBs), Microfinance Banks, Mobile Money Operators, MMOs, and super-agents.
The memo titled ‘Cash-out limits for agent banking transactions,’ explained that the restriction is in line with the Central bank’s ongoing efforts to advance a cashless economy.
It read, “In view of the above, all principals of agents are to comply with the following directives immediately. Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week.
“Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer. And ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00.”
CBN directed that the banks should ensure that agent banking services are clearly demarcated from merchant activities. And that agents apply and get the approved Agent Code 6010 for agent banking activities.
The apex bank directed, “Ensure that agency banking activities are consummated exclusively through agent float accounts maintained with the principals. And monitor accounts associated with the agents’ BVN(S) with a view to identifying agent banking activities which may be conducted outside the designated float account(s).
“Ensure that all agent terminals are connected to a PTSA. And ensure that all daily transactions per agent, including withdrawals, limits of transactions and balances in the float accounts of each agent, are sent electronically to NIBSS as a report to the CBN. The template of this report will be sent to principals,” it added.
CBN also explained that regulating agent banking and agent banking relationships in Nigeria that principals would be held fully responsible. They would also be liable for all actions and omissions of their agents related to agent banking services.
The apex bank, therefore, warned it would conduct oversight activities, including impromptu back-end configuration checks to ensure compliance.
It noted that breach of the directives contained in the circular will attract appropriate penalties, including monetary and/or administrative sanctions.
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