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CBN Moves to Strengthen Cashless Economy, Pegs Individual’s Daily Withdrawals at 100k, and 500k Weekly

CBN Moves to Strengthen Cashless Economy, Pegs Individual’s Daily Withdrawals at 100k, and 500k Weekly
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In new initiatives aimed at strengthening its cashless economy policy and streamline banking operations, the Central Bank of Nigeria (CBN) has announced new cash-out limits for agent banking transactions. This directive, effective immediately, imposes caps on withdrawals for both customers and agents to encourage the use of electronic payment systems and reduce risks associated with cash-based transactions.
Under the new regulations, individuals can withdraw a maximum of ₦100,000 per day, with a weekly limit set at ₦500,000. Agents, who play a critical role in facilitating banking services in underserved areas, are restricted to a cumulative daily withdrawal cap of ₦1.2 million. These measures are designed to curb excessive cash usage while ensuring financial transactions remain secure and traceable.
The CBN further mandates that all agent banking terminals enforce these limits. To enhance operational efficiency and prevent misuse, agent transactions must utilise the approved Agent Code 6010, and all operations are to be conducted exclusively through designated float accounts maintained with the agents’ principals. This ensures transparency and accountability in agent banking activities.
To monitor compliance, all agent terminals must be connected to a Payment Terminal Service Aggregator (PTSA), and transaction reports must be submitted daily to the Nigeria Inter-Bank Settlement System (NIBSS). These reports will include withdrawal amounts and float account balances, ensuring that activities remain within regulatory guidelines. Additionally, principals are required to monitor all accounts tied to agents’ Bank Verification Numbers (BVNs) to detect and prevent unauthorised transactions outside the designated float accounts.
The CBN has also taken steps to clarify the roles and responsibilities of principals and agents. Principals will be held fully accountable for any violations or misconduct by their agents in delivering banking services. To enforce these rules, the CBN will conduct routine inspections and backend system checks. Non-compliance will result in penalties, including financial sanctions and administrative measures, to ensure strict adherence to the policy.
This directive reflects the CBN’s commitment to addressing key challenges in the banking sector, including fraud, inefficiencies, and operational inconsistencies. By imposing these limits, the apex bank aims to standardise agent banking activities while promoting the use of electronic payment channels for everyday transactions.
The initiative is a strategic step toward reducing the economy’s reliance on cash, enhancing the security of financial transactions, and fostering a more inclusive banking system. Stakeholders are encouraged to review the complete circular on the CBN’s official website for a detailed understanding of the new guidelines and their implications for agent banking operations nationwide.

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Written by Shola Akinyele

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