Cash Scarcity: CBN Places N1.2m Limit on PoS Operators

As the unavailability of cash in banking halls in the country continues to worry customers, the Central Bank of Nigeria(CBN) has moved to curb activities of banking agents popularly known as Point of Sale (PoS) operators.

Despite the unavailability of cash at Automated Teller Machines (ATMs) of banks and limited cash within the banking halls, PoS operators have continually had access to unlimited cash that is dispensed to bank customers at a charge. A situation bank customers have continued to complain about.

The CBN had given a December 1 deadline to bank to ensure that there is cash at the ATMs and banking halls but this had proved abortive as cash scarcity remained at the official banking channels.
To this end, the CBN in a circular on cash out limits for agent banking transactions issued to all Deposit Money Banks, Microfinance Banks, Moble Money Operators and Super-Agents, has placed a N1.2 million limit on PoS operators.

According to the circular signed by Oladimeji Yisa Taiwo for the Director, Payment System Management department of the CBN, the policy interventions have become necessary to enhance the use of electronic payment channels for agency banking operations.

The circular directed that “Issuers shallset a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week. Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer.

“Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1.2 million. Ensure that agent banking services are clearly demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities.

“Ensure that agency banking activities are consummated exclusively through agent float accounts maintainedwith the principals. Monitor accounts associated with the agents’ BVN(s) with a view to identifying agent banking activities which may be conducted outside the designated float account(s).

They are also to ensure that all agent terminals are connected to a PTSA and 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 repot to the CBN. “The template of this report will be sent to principals. As stated in the Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria, principals shall be wholly responsible and liable for all actions and omissions of their agents as it relates to agent banking services or matters connected therewith.

“The CBN will conduct oversight of the afore-mentioned actions (including impromptu back-end configuration checks) to ensure that all principals and their agents comply. Any breach of the directives contained in this Circular shall attract appropriate penalties including monetary and/or administrative sanctions.”