CBN Announces Daily, Weekly Cash Withdrawals Limit for POS Transactions
- The CBN has announced a new rule for PoS operators transactions under new agent banking guidelines
- The apex bank also wants financial institutions to submit monthly reports on agent activities, fraud cases and complains
- The new rules take immediate effect, while provisions on agent location and exclusivity will take effect on April 1, 2026
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has set a daily Point of Sales (PoS) cumulative cash transaction limits of N1.2 million for agent while individual customers can only transact up to N100,000 per day.
The apex bank stated this in its revised framework for agent banking across the country released on Monday, October 6.
Source: Getty Images
The document, numbered PSP/DIR/CON/CWO/001/049 and signed by Musa Jimoh, Director of the Payments System Management Department, aims to strengthen financial stability, promote inclusion, and protect consumers within the agent banking ecosystem.
The circular stated:
“The guidelines aim to establish minimum standards for operating agent banking in Nigeria, enhance service quality, and encourage responsible market conduct."
New cash withdrawal limit
Under the revised framework, cash deposit to N100,000 and Bill payments to N100,000 daily and N500,000 weekly for individuals
Th CBN said directive takes effect immediately.
Part of the circular reads:
""Customers using agent banking services are subject to the following transaction limits: a daily limit of N100,000 and a weekly limit of N500,000 for both cash-in (deposits) and cash-out (withdrawals) transactions from previously 1 million. For bill payments, the maximum allowable transaction amount is N100,000 per day and N100,000 per week.
"Financial institutions shall ensure that transactional limits for agent banking services remain within the maximum regulatory thresholds stipulated in this section of the Guidelines.
"The CBN may vary or amend the transaction limits specified from time to time for each service, in line with the extant CBN Guide to Charges for Banks and Other Financial Institutions in Nigeria."
POS device new instructions
The CBN also instructed POS device deployed to or used by an agent in carrying out agent banking services shall be geo-fenced or tagged to operate strictly within the registered agent premises or approved location.
It noted that full implementation on agent location and exclusivity will become effective from April 1, 2026.
Additionally, all devices used for agent banking must be geo-fenced to ensure they operate strictly within approved locations.
Any relocation or closure of an agent’s business premises requires written approval from the principal or super agent and a 30-day notice displayed at the business site.
Source: Getty Images
More instruction on agent banking
As part of the new rules, all agent banking transactions must be conducted through dedicated accounts or wallets maintained by principal financial institutions.
The CBN warned that using non-designated accounts for agent operations would constitute a regulatory violation and attract sanctions.
Agents found guilty of fraud or misconduct may be placed on industry watchlists or have their operating agreements terminated.
The guidelines also require all financial institutions to submit monthly reports to the CBN detailing transaction volumes and values, incidents of fraud, customer complaints, agent activity, and training efforts. Reports are due no later than the 10th day of the following month.
In a move to enhance transparency, the CBN directed principals, including deposit money banks, microfinance institutions, and payment service providers, to publish and regularly update their lists of agents on their official websites and display them within their branches.
Super agents are also required to maintain at least 50 sub-agents spread across Nigeria’s six geopolitical zones to boost financial inclusion in underserved regions, Punch reports.
Additionally, the CBN mandated that all agent transactions be carried out in real time using secure and interoperable payment systems, while financial institutions must deploy technologies that enable instant settlements and immediate reversals in the event of system failures.
Transaction receipts are to include the agent’s name and geographical coordinates, and all audit trails must be preserved for a minimum of five years.
PoS terminal transaction increases
Earlier, Legit.ng reported that the value of transactions over PoS terminals in Nigeria surged to N18 trillion in 2024, hitting an all-time yearly record.
More Nigerians embrace Point of Sales (PoS) terminals as the number of transactions increases for the year 2024.
Similarly, the volume of transactions grew by 8% year-on-year, reaching 1.5 billion in 2024 compared to 1.4 billion in the previous year.
Source: Legit.ng
