This directive, communicated to all deposit money banks (DMBs), microfinance institutions, mobile money operators, and super-agents in a notice titled ‘Cash-out limits for agent banking transactions,’ supports the CBN's initiative to foster a cashless economy.
The circular outlines that these measures are designed to tackle recognized issues, reduce fraud, and create consistent operational standards throughout the sector.
“To this end, all agents are required to adhere to the following directives without delay:
i. Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week,” the circular reads.
“ii. Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer.
“iii. Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00.
“iv. Ensure that agent banking services are clearly demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities.
“v. Ensure that agency banking activities are consummated exclusively through agent float accounts maintained with the principals.
“vi. 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).
“vii. Ensure that all agent terminals are connected to a PTSA
“viii. 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 repot to the CBN. The template of this report will be sent to principals.”
The Central Bank of Nigeria (CBN) clarifies that, per agent banking regulatory guidelines, principals assume complete responsibility and liability for all agent actions and omissions related to agent banking services.
Furthermore, the CBN will conduct oversight, including unannounced back-end configuration audits, to ensure compliance. Any violation of these directives will result in appropriate penalties, potentially including financial and/or administrative sanctions.