Central Bank of Nigeria (CBN) Circular on Cash-Out Limits for Agent Banking Tran

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Central Bank of Nigeria (CBN) Circular on Cash-Out Limits for Agent Banking Transactions

The Central Bank of Nigeria (CBN), in its continuous effort to promote a cashless economy and improve the efficiency of electronic payment channels, has introduced new policy measures for agent banking operations. These interventions aim to address challenges, combat fraud, and standardize operational practices across the industry.

Below are the key directives issued by the CBN, effective immediately:

Key Directives for Agent Banking Transactions

• Weekly Cash-Out Limit: Each customer is restricted to a maximum cash withdrawal (cash-out) limit of ₦500,000 per week, regardless of the channel used.
• Daily Transaction Limit:
  Per Customer: Agent banking terminals must enforce a daily cash-out transaction limit of ₦100,000 per customer.
  Per Agent: The cumulative daily cash-out limit for an agent must not exceed ₦1,200,000.
• Operational Guidelines for Agents:
  Agent banking services must be distinct from merchant activities, and agents are required to use the approved Agent Code 6010.
  Transactions must be conducted exclusively through agent float accounts maintained with their principals.

Monitoring and Reporting:

• Principals must monitor accounts associated with agents’ BVNs to ensure transactions are conducted only through designated float accounts.
• All agent terminals must connect to a Payment Terminal Service Aggregator (PTSA).
• Daily transaction reports, including withdrawals, limits, and float account balances, must be submitted electronically to the Nigeria Inter-Bank Settlement System (NIBSS) using the CBN-approved template.

Responsibility of Principals:
Principals are fully liable for all actions and omissions of their agents related to agent banking services.

Oversight and Compliance
The CBN will oversee compliance through regular monitoring, including back-end configuration checks. Non-compliance with these directives will result in appropriate penalties, including monetary and/or administrative sanctions.

Conclusion
All principals of agent banking services are required to comply with these directives immediately. These measures are crucial for enhancing security, ensuring operational efficiency, and fostering trust within the agent banking ecosystem.

Issued by:
Oladimeji Yisa Taiwo
Director, Payments System Management Department
Date: December 17, 2024

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