Daily withdrawals from Point of Sale (POS) terminals have now been restricted to a maximum limit of N100,000 per customer, as part of new regulations introduced by the Central Bank of Nigeria (CBN). This directive was disclosed through a circular sent to all deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents across the country.
The CBN, in the circular titled ‘Cash-out limits for agent banking transactions,’ explained that the decision is part of the apex bank’s continued efforts to promote a cashless economy and ensure the financial ecosystem evolves to meet global standards. The circular emphasized the importance of these measures in addressing identified challenges within the financial system, combating fraud, and implementing uniform operational standards for agent banking services.
The new regulations require all stakeholders in the agent banking sector to comply immediately with the following directives: “Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week. Additionally, agent banking terminals must enforce a daily transaction cash-out limit of N100,000.00 per customer.”
The circular highlighted that these measures were designed not only to strengthen the integrity of financial transactions but also to promote a more secure and efficient financial landscape. By capping the amount customers can withdraw daily and weekly, the CBN aims to mitigate risks associated with large cash transactions, reduce fraudulent activities, and encourage the adoption of electronic payment systems.
The apex bank further emphasized that these directives are mandatory and must be enforced immediately by all agents and their principals to ensure compliance and consistency across the industry. The move aligns with the CBN’s broader vision to deepen financial inclusion and enhance the trust and reliability of Nigeria’s banking system.
