The Central Bank of Nigeria (CBN) has imposed a daily withdrawal limit of N100,000 per customer for Point-of-Sale (PoS) transactions, as part of its push toward advancing a cashless economy.
This was disclosed in a circular titled “Cash-out Limits for Agent Banking Transactions”, addressed to Deposit Money Banks (DMBs), microfinance banks, mobile money operators, and super-agents.
Clampdown on Currency Misuse
The CBN also announced a ₦150 million fine for financial institutions involved in the illegal flow of mint naira notes to currency hawkers, including PoS operators. Subsequent violations will attract stricter penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
The move comes after the apex bank addressed concerns about the validity of old ₦1000, ₦500, and ₦200 notes still in circulation.
Monitoring and Enforcement
To enforce compliance, the CBN will increase spot checks in banking halls and ATMs while deploying mystery shoppers to identify and curb illegal cash hawking activities.
Combatting Cash Scarcity
These measures are part of the CBN’s strategy to alleviate cash scarcity, particularly during the yuletide season. The bank revealed that over 94% of currency in circulation is outside the control of deposit banks, marking a year-on-year increase of ₦1.59 trillion in cash held outside formal financial institutions.
A Persistent Challenge
CBN data from 2024 shows that over 90% of currency in circulation consistently remains outside the banking system, reflecting a deep-seated reliance on cash transactions.
The CBN’s latest actions underscore its commitment to enforcing cashless policies and curbing systemic cash shortages while fostering a more transparent and regulated financial system.
