CBN LIMITS DAILY WITHDRAWAL ON POS TO N100,000

The Central Bank of Nigeria (CBN) has introduced a new daily limit for cash withdrawals using Point of Sale (POS) systems. As of December 17, 2024, each customer can now withdraw up to N100,000 per day. This move is part of the CBN’s efforts to promote electronic payments and move towards a cashless economy.

Aims and Objectives

The CBN’s decision to limit daily withdrawals on POS is aimed at reducing the risk of fraud and promoting the use of digital payment methods. The bank believes that this move will help to reduce the reliance on cash transactions and encourage Nigerians to adopt more secure and efficient payment methods.

Guidelines for POS Operations

To ensure a smooth transition, the CBN has issued guidelines for POS operations. These guidelines include:

• Daily Customer Limit: No customer can withdraw more than N100,000 per day through any POS service.
• Agent Daily Transaction Limit: Each POS agent is limited to N1,200,000 in cash-out transactions per day.
• Customer Weekly Withdrawal Limit: Customers are limited to N500,000 in withdrawals per week.
• Transaction Fees: POS operators are required to charge a transaction fee of 0.5% of the transaction amount, subject to a maximum of N2,000.

Implications for POS Operators and Customers

The new daily limit for POS withdrawals is expected to have significant implications for POS operators and customers. POS operators who rely on high-volume transactions may see a decline in their business, while customers may face inconvenience, especially in areas with limited banking services.

Reaction from Stakeholders

Stakeholders in the financial sector have reacted to the CBN’s decision, with some expressing support for the move. “The CBN’s decision to limit daily withdrawals on POS is a step in the right direction,” said Mr. Taiwo Oyedele, a financial analyst. “It will help to reduce the risk of fraud and promote the use of digital payment methods.”

However, others have expressed concerns about the potential impact on POS operators and customers. “The new daily limit for POS withdrawals may cause inconvenience for customers, especially in areas with limited banking services,” said Mrs. Nneka Chukwueke, a POS operator.

Conclusion

The CBN’s decision to limit daily withdrawals on POS is a significant step towards promoting electronic payments and reducing the risk of fraud. While the move may have implications for POS operators and customers, it is expected to have long-term benefits for the Nigerian economy. As the financial sector continues to evolve, it is essential for stakeholders to adapt to changing regulations and technologies.