One of Nigeria’s commercial banks, Union Bank, has commenced implementing the daily withdrawal limits on Point-of-Sale (PoS) terminals ordered by the Central Bank of Nigeria (CBN)......Read The Full Article>>.....Read The Full Article>>
The implementation came amid a directive by the apex bank on December 17, 2024, restricting the daily withdrawal limit on PoS to N100,000 per customer.
CBN said the intervention aims to solve known challenges, fight fraud, and establish uniform industry-wide operational guidelines.
Six weeks after the CBN’s directives, Union Bank emailed its customers to inform them that the implementation of the daily withdrawal limit had begun. Customers are henceforth limited to a weekly withdrawal of N500,000 on PoS.
According to the email, the bank acted according to the apex bank’s orders to limit transactions on PoS to the stated amount daily and weekly.
Union Bank’s announcement comes after CBN fined nine banks N3.1 trillion for failing to load their automated teller machines (ATMs) with cash and causing a cash squeeze during Christmas.
Union Bank, one of the banks fined by CBN, said its ATMs are also available for cash withdrawals, encouraging its customers to use alternative channels for their transactions.
“Our ATMs are also available for your cash withdrawals. We encourage you to use our alternative channels (UnionMobile, *826#, UnionOnline) for all your transactions,” the bank stated.
TheCable reports that the financial institutions were sanctioned following spot checks by CBN, revealing non-compliance with its cash distribution guidelines.
The development comes after some commercial banks resumed selling their customers Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), showing a shift in FX availability after a prolonged supply shortage.
The development came as financial institutions adjusted to market demands and the Central Bank of Nigeria (CBN) policy changes.
Nigeria’s oldest financial Institution, First Bank, announced the resumption of FX sales for various international transactions.
The bank stressed that customers can now access FX for PTA, BTA, Payment of school fees, medical bills and other authorised transactions under Form A.
It said that Form A applications, including school fees, student upkeep, PTA, BTA, and medical bills, must be processed via the CBN’s trade monitoring systems (TRMS) portal, with all needed supporting documents uploaded to ensure a seamless application process.
Ogunbayi Ganiyu, the national publicity relations officer of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), cited the effect of the tariff hike on their businesses.
He explained that PoS operators depend heavily on telecom services, especially mobile data, for their operations.