CBN Sets N1.2M Cash-Out Limit for Agency Banks

The country’s agency banks have been restricted to a daily total cash-out restriction of N1.2 million.

The Central Bank of Nigeria (CBN) stated in a circular that the action is intended to increase agency banking activities’ usage of electronic payment channels.

Individuals are now permitted to withdraw N100,000 per day and N500,000 per week under this new regulation.

All deposit money banks, microfinance banks, mobile money operators, and super-agents were the recipients of the circular dated December 17, 2024.

According to the CBN, the intervention’s goals are to combat fraud, correct issues that have been detected, and create consistent industry-wide operational standards.

Based on the standards, issuers must impose a weekly cash withdrawal cap of N500,000 per customer, regardless of channel.

“Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000 per customer.

Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.

Ensure that agent banking services are demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities,” it said.

According to the circular, which was signed by Oladimeji Taiwo on behalf of the Payments System Management Department, the action would guarantee that only agent float accounts kept with the principals are used for agency banking operations.

To detect agent banking transactions that might be carried out outside of the designated float account(s), the CBN further stated that principals are required to keep an eye on accounts linked to the agents’ BVN(s).

Principals are also supposed to make sure that every agent terminal is linked to a PTSA.

“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 said.

According to the Nigerian rules for the Regulation of Agent Banking and Agent Banking Relationships, the CBN pointed out that principals are fully accountable for the acts and inactions of their agents regarding related services or concerns.

To make sure that all principals and their agents comply, the CBN suggested that it would supervise the new interventions, including conducting spontaneous back-end configuration checks.

It said, “Any breach of the directives contained in this Circular shall attract appropriate penalties, including monetary and/or administrative sanctions,”

Manomsi Mallum/ The Guardian