Institution Limit

Institution Limit

The Institution Limit is a comprehensive control mechanism within the Core Banking Application that defines the maximum transaction boundaries for various payment channels across the banking institution. This feature allows banks to set and manage transaction limits for different payment methods, such as ATM withdrawals and POS transactions. These limits are configurable at multiple levels:

  • Per Transaction Limit: Defines the maximum amount allowed for a single transaction.

  • Daily Transaction Limit: Sets the total amount that can be transacted within a 24-hour period

  • Weekly Transaction Limit: Establishes the maximum transaction volume over a seven-day period

  • Transaction Count: Controls how many transactions can be performed within a day

Accessing the Institution Limit Page

  1. Log into the Core Banking Application

  2. From the left sidebar menu, navigate to Operations

  3. Click on Configurations

  4. Select Institution Limit

The Institution Limit allows banks to implement their own risk management policies while ensuring smooth customer transactions. It helps in:

  • Preventing fraudulent activities by limiting exposure

  • Managing cash flow and liquidity

  • Implementing bank-specific policies

  • Controlling operational risks

  • Maintaining service quality standards

Regulatory Limit

The Regulatory Limit represents the maximum transaction thresholds banks must comply with, as set by financial regulatory authorities. These limits serve as the absolute ceiling for all transaction limits within the banking system and cannot be exceeded under any circumstances. The regulatory limits are:

  • ATM Transactions:

    • Per Transaction: ₦20,000.00

    • Daily Limit: ₦100,000.00

    • Weekly Limit: ₦500,000.00

  • POS Transactions:

    • Per Transaction: Not specified

    • Daily Limit: ₦100,000.00

    • Weekly Limit: ₦500,000.00

Key Aspects of Regulatory Limits:

  1. Compliance Requirement: These limits are mandatory and supersede any institution-set limits

  2. Risk Management: They help in preventing money laundering and other financial crimes

  3. Consumer Protection: Protects customers by limiting potential fraud exposure

  4. Market Stability: Contributes to overall financial market stability by controlling transaction volumes

  5. Automatic Enforcement: The system automatically prevents any transaction that would exceed these regulatory thresholds

The Relationship between Institution and Regulatory Limits:

  • Institution Limits must always be equal to or lower than Regulatory Limits

  • The system displays warning messages when Institution Limits exceed Regulatory Limits

  • Banks can set stricter limits than regulatory requirements but cannot exceed them

  • Both limits work together to create a secure and compliant transaction environment

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