‘PoS Operators Are Not Endangered’ – CBN Gives Conditions For Bulk Withdrawal

‘PoS Operators Are Not Endangered’ – CBN Gives Conditions For Bulk Withdrawal

The Central Bank of Nigeria (CBN) has refuted claims that its new policy restricting cash withdrawals is aimed specifically at point-of-sale (PoS) agents.

Though the apex bank set the daily withdrawal limit for individuals and organizations at N100,000 and N500,000, respectively, it allowed for compelling cases to withdraw up to N5 million or N10 million.

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“Let me just correct an impression: not in any way are they (PoS agents) endangered,” the CBN’s Director of Banking Supervision, Mustafa Haruna, said during a live appearance on Channels Television’s Sunrise on Saturday.

“When you do the numbers, how much does a typical agent outlet need in a day? People need to just see this as a policy that is intended at contributing to economic growth and development, and when Nigerians know the enormous benefits inherent in this policy, I’m very sure it will shift mindsets.

“It is typical when you introduce something new, there is always that trepidation and apprehension. But that is why we are also combining it with extensive and sustained campaigns and sensitisation just to ensure that Nigerians understand what is at play, what is involved, and what is in it for them.”

Haruna cited the apex bank’s December 6 circular, which stated that if an individual or organization requires an amount above the set limit due to “compelling circumstances,” there are conditions that must be met.

The CBN had stated that in such cases, withdrawals above the limit would be subject to processing fees of 5% and 10% for individuals and corporate entities, respectively, in addition to “enhanced due diligence and further information requirements.”

Haruna cited the apex bank’s December 6 circular, which stated that if an individual or organization requires an amount above the set limit due to “compelling circumstances,” there are conditions that must be met.

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The CBN had stated that in such cases, withdrawals above the limit would be subject to processing fees of 5% and 10% for individuals and corporate entities, respectively, in addition to “enhanced due diligence and further information requirements.”

“There is hardly any nuke or cranny in Nigeria where you go that you won’t see one agent outlet or the other where they do cash-in, cash-out services. Such customers can take advantage of those services,” the CBN director said.

“But to the point about the quantum of naira such a customer would need, of course, this is an evolutionary process; we will get there. And if you have such a need for a high volume of cash, you can always go to your bank to say, ‘Look, this is my business,’ and they will be able to (attend to you).”

According to him, the CBN policy was aimed at expanding the cashless policy, which was first implemented as a pilot program in major cities such as Lagos and Abuja a decade ago. He explained that the policy needed to be scaled up due to the high cost of currency management.

“We started since 2012 and we had some charges that you have to pay, although the revised limit and charges are different from what we had. This is not something new. We feel we should take things to a high level if we must make progress, in line with global trends,” he said.

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