Home Banking & Finance CBN bars agents from using PoS for transactions

CBN bars agents from using PoS for transactions


The Central Bank of Nigeria (CBN) has barred the use of Point of Sale (PoS) terminals by agents to carry out cash-in and cash-out transactions stating that it is meant for merchants.

The CBN made this known in a circular titled Exposure Draft of the Regulatory Framework for Agent Banking in Nigeria.

The apex bank said the agent banking initiative has resulted in the proliferation of financial services agents across Nigeria and has led to a significant and growing portion of financial transactions being conducted through the agents.

“This has necessitated the review of agent banking regulations to streamline activities in agent banking while ensuring that appropriate risk mitigation measures are taken by stakeholders”, it said.

Section 8.3 of the guidelines which highlighted prohibited activities for agents stated: “An agent shall not accept deposit or allow withdrawal above an amount which shall be prescribed, from time to time by the bank.

“Use the wrong option for transactions e.g agents shall not use the purchase option PoS Terminals for cash in and cash-out transactions.”



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