The Central Bank of Nigeria (CBN) has introduced a new directive aimed at promoting a cashless economy by limiting daily Point-of-Sale (POS) withdrawals to N100,000 per customer. This move is part of the apex bank's efforts to combat fraud, establish uniform operational standards, and address identified challenges in the financial sector ¹.
*Key Provisions of the Directive*
- Daily customer limit: No customer can withdraw more than N100,000 per day through any POS service ¹.
- Agent daily transaction limit: Each POS agent is limited to N1,200,000 in cash-out transactions per day ¹.
- Customer weekly withdrawal limit: Customers are limited to N500,000 in withdrawals per week ¹.
*Implementation and Monitoring*
The CBN has mandated that all agency banking transactions must be conducted exclusively through float accounts maintained with the principal institutions ². Agents must also separate their banking services from other merchant activities and use the approved Agent Code 6010 for transactions ². To ensure compliance, the CBN will conduct oversight activities, including impromptu back-end configuration checks ².
*Penalties for Non-Compliance*
The CBN has warned that breach of the directives contained in the circular will attract appropriate penalties, including monetary and/or administrative sanctions ². Any bank caught supplying minted Naira notes to currency hawkers will have to pay a fine of N150 million ².
*Benefits of the Directive*
The new directive aims to promote electronic payments and reduce the use of cash, which can help to:
- Reduce fraud and money laundering
- Enhance financial inclusion
- Improve economic growth and stability
- Increase transparency and accountability in financial transactions
*Challenges and Concerns*
However, the directive may pose challenges for POS operators who depend on high-volume transactions, and may inconvenience customers, especially in areas with few banking services ¹.
*Conclusion*
The CBN's new directive is a significant step towards promoting a cashless economy in Nigeria. While there may be challenges and concerns, the benefits of reducing fraud, enhancing financial inclusion, and improving economic growth and stability make this directive a welcome move. As the CBN continues to monitor compliance and address any challenges that arise, it is clear that the future of cashless transactions in Nigeria is bright ¹ ².
