CBN forbids agents from doing transactions using PoS terminals

 Agents are not permitted to use Point of Sale (PoS) terminals designed for merchants to

conduct cash-in and cash-out transactions, according to the Central Bank of Nigeria (CBN).

In a circular announcing the Exposure Draft of the Regulatory Framework for Agent Banking in Nigeria, the apex bank made this information public.

The CBN claims that the agent banking effort has led to a considerable and expanding number of financial services agents popping up all throughout Nigeria and being used to perform a sizable part of financial transactions.

This "has required the reform of agent banking legislation to streamline agent banking activities while ensuring that adequate risk mitigation measures are adopted by stakeholders," the statement read.

"An agent shall not take deposit or enable withdrawal over an amount which shall be prescribed, from time to time by the bank," the rules' Section 8.3's list of forbidden actions for agents, read. Utilize the incorrect choice for a transaction, such as when agents are prohibited from using PoS Terminals' buy option for cash-in and cash-out transactions.