Limits For Agent Banking Transactions

Against the backdrop of growing concern that Point Of Sale (PoS) mobile agents are capitalizing on lingering cash scarcity in the country to hike their charges, the Central Bank of Nigeria (CBN), on Tuesday, announced several policy interventions, including new cash-out limits for agent banking transactions.

In a circular to Deposit Money Banks (DMBs), Microfinance Banks, Mobile Money Operators and Super-Agents posted on its website, the apex bank directed all principals of agents to immediately comply with the new directives.

Specifically, under the new rules: Issuers must set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week; all agent banking terminals are to set a daily maximum transaction cash-out limit of N100,000.00 per customer; each agent’s daily cumulative cash-out limit must not exceed N1,200,000.00; agent banking services must be clearly demarcated from merchant activities and agents must apply the approved Agent Code 6010 for agent banking activities.

Furthermore, the directives also stipulate that agency banking activities be consummated exclusively through agent float accounts maintained with the principals; there must be monitoring of accounts associated with the agents’ Bank Verification Numbers (BVN(s) “with a view to identifying agent banking activities which may be conducted outside the designated float account(s)” and all agent terminals must be connected to a Payment Terminal Service Aggregator (PTSA).

In addition, the directives mandate principals to: “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 report to the CBN.” The circular said that the template of this report will be sent to principals. It further said:

“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.”