CBN Sets Daily Withdrawal Limit on POS to N100 Thousands Per Customer

Israel Adeleke

In a move towards efforts to advance a cash-less economy, the Central Bank of Nigeria (CBN) has set a daily withdrawal limit on point-of-sale (PoS) terminals to N100,000 per customer.

OPEN TELEVISION NAIJA (OTN) News reports that this development was contained in a circular titled ‘Cash-out limits for agent banking transactions' which was sent to all deposit money banks (DMBs), microfinance Banks, mobile money operators and super-agents.

According to the apex bank of Nigeria (CBN), the restriction is in line with the apex bank’s ongoing efforts to advance a cash-less economy.

OTN News had earlier reported that CBN has announced a fine of ₦150 million on Deposit Money Banks found guilty of giving out illegal flow of mint naira notes to currency hawkers, including POS operators across the country.

Furthermore, the move was after the apex bank addressed recent misinformation about the validity of the old N1000, N500, and N200 banknotes still in circulation.

The Apex bank explained that under the directive, any branch of a financial institution found culpable will face a penalty of N150m for the first violation.

Subsequent infractions, the CBN warned, would attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

However, to ensure compliance, the apex bank stated that it would increase periodic spot checks in banking halls and ATMs while deploying mystery shoppers to uncover illicit cash hawking spots across the country.

All these new implementations are part of efforts by the CBN to control cash scarcity especially in this yuletide season.

The apex bank also revealed that more than 94 per cent of the cash in circulation in the country is outside the control of deposit banks, marking a significant year-on-year increase of N1.59 trillion in the amount of currency held outside banks.