Business

CBN Sets Daily POS Transaction Cap at N100,000 for Agents

As part of this policy, POS agents are now restricted from paying more than N100,000 as cash to each customer per day"

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The Central Bank of Nigeria (CBN) has introduced a new policy aimed at promoting a cashless economy and enhancing the security and accountability of agent banking operations.

As part of this policy, POS agents are now restricted from paying more than N100,000 in cash to each customer per day.

The policy, which was outlined in a circular released on December 17, 2024, also sets a cumulative daily limit for agents at N1,200,000 and a weekly withdrawal cap for customers at N500,000.

Additionally, agents are required to clearly demarcate their banking services from other merchant activities and use the approved Agent Code 6010 for all transactions.

The CBN has also mandated that all agency banking activities be conducted through float accounts maintained with principal institutions and that institutions monitor accounts linked to agents’ BVNs to identify any unauthorized banking activities.

Furthermore, agents are required to connect their terminals to the Payments Terminal Service Aggregator (PTSA) and send daily transaction reports to the Nigerian Inter-Bank Settlement System (NIBSS) electronically.

The CBN has urged stakeholders to adhere to the guidelines and contribute to the realization of a more robust and cashless financial system in Nigeria.

However, the new policy may pose challenges for POS operators who rely on high-volume transactions to sustain their businesses, and customers may face inconveniences due to reduced cash availability, particularly in rural areas.

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