Cbn Enforces New Cash-out Limits For Agent Banking To Propel Cashless Economy

In a strategic move to bolster Nigeria's cashless policy, the Central Bank of Nigeria (CBN) has introduced stringent cash-out limits for agent banking transactions. Effective immediately, individual customer withdrawals are capped at ₦100,000 per day, with a weekly ceiling of ₦500,000 across all channels. Additionally, agents are restricted to a cumulative daily cash-out limit of ₦1.2 million.

This directive mandates that all agent banking terminals enforce these limits to enhance electronic payment adoption, combat fraud, and standardize operations within the industry. The CBN emphasizes that agent banking services must be distinctly separated from merchant activities, utilizing the approved Agent Code 6010 for all transactions. Furthermore, all agency banking activities are to be conducted exclusively through designated float accounts maintained with their principals.

To ensure compliance, the CBN requires that all agent terminals connect to a Payment Terminal Service Aggregator (PTSA). Daily transaction reports, including withdrawal limits and float account balances, must be electronically submitted to the Nigeria Inter-Bank Settlement System (NIBSS) using a standardized template provided by the CBN. Principals are also tasked with monitoring accounts linked to agents' Bank Verification Numbers (BVNs) to detect any unauthorized activities outside the designated float accounts.

The apex bank underscores that principals will bear full responsibility for the actions and omissions of their agents concerning banking services. The CBN has committed to conducting periodic oversight and impromptu backend configuration checks to ensure adherence to these directives. Non-compliance will attract appropriate penalties, including monetary fines and administrative sanctions.

These measures are part of the CBN's ongoing efforts to promote a cashless economy, address operational challenges, and establish uniform standards across Nigeria's financial industry. By enforcing these cash-out limits, the CBN aims to encourage the use of electronic payment channels, thereby reducing the risks associated with cash-based transactions and enhancing overall financial system efficiency.

For a comprehensive understanding, stakeholders are advised to review the full circular available on the CBN's official website.