Key questions this article answers:
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What updates did CBN propose in the exposure draft of its agency banking guidelines released on March 9?
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What are their implications for agency banking operators?
On March 9, 2023, barely a week away from Nigeria’s 2023 gubernatorial elections, there was one thing we weren’t expecting: a memo from the Central Bank of Nigeria (CBN).
Yet, we got one.
CBN released an exposure draft, proposing updates to its 2013 agency banking guidelines. CBN proposed two new restrictions. The first was retail merchants' point-of-sale devices (POS) should not be used for agent cash-in/cash-out services (aka cash withdrawals and deposits). The other was mandating agents be exclusive to one financial service provider. But in this article, we will focus on the first one.
CBN doesn’t want merchants at supermarkets, fuel stations or restaurants etc., using the same POS devices to process customer payments and offer cash withdrawals
