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Payments System: CBN debars agents from activating PoS terminals for financial transactions

*The Central Bank of Nigeria stresses the agent banking initiative has resulted in proliferation of financial services agents, resulting in a significant and growing portion of financial transactions being conducted through the agents across the country

Isola Moses | ConsumerConnect

In view of the reported proliferation of financial services agents across the country, the Central Bank of Nigeria (CBN) has debarred agents from using Point of Sale (PoS) terminals.

ConsumerConnect reports the CBN stressed the PoS terminals  are meant for merchants to carry out cash-in and cash-out transactions in the economy.

The Bankers’ Bank disclosed this development via a circular announcing the Exposure Draft of the Regulatory Framework for Agent Banking in the West African country.

The banking sector regulator noted that the agent banking initiative had resulted in the proliferation of financial services agents across Nigeria, resulting in a significant and growing portion of financial transactions being conducted through the agents.

It is recalled the CBN and other regulatory agencies in the financial services sector recently complained about the astronomical increases in PoS operators’ charges to consumers amid the current Naira scarcity and cash swap.

Likewise, a broad spectrum of consumers, interest groups, civil rights organisations, and industry associations also expressed dissatisfaction with exorbitant charges by several PoS operators for financial services to their clients.

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