Cash-less economy in nigeria

A cash-less society is a culture where no one use cash for transaction, all purchase being made are by credit card, charge card, cheque or direct transfer form one account to another through mobile banking
Reflecting back at the dawn of january 1, 2012, pilot scheme of mobile money, one of the financial service introduce by the central bank of nigeria, via a CBN circula ref no. COD/DIR/GEN/CIT/05/O31 Date 20th april 2011, to achieve a cash-less economy, which took of in lagos, the commercial nerve center of nigeria
The central bank of nigeria(CBN) has introduce a new policy which is the cash-less base transaction which stipulate a cash handling charge on daily cash withdrewal or cash deposit that will not exceed 500,000 for individual and 3,000,000 for corporate bodies. This policy is to reduce(not to eliminate)the amount of physical cash (coin and note) circulating in the economy
The convergence of communication and information system is enabling a rapid move to electronic commerce and the empowerment of the individual to have an unprecedented level of control over his or her own finance
Globally, this move has been bolstered, majorly by proper regulation, infrastructure upgrade and security network, especially in advance nation, besides, combined market for all types of mobile payments which is expected to reach more than $600 billion globally by 2013 which will double the current figure
I ask myself why cash-less policy,knowing very well that people are use to cash policy and many are comfortable with it. But here are the summary for the implementation of cash-less policy, the are:
1. To reduce the cost of banking service( including cost of credit) for more efficient transaction options and great reach
2. To improve the effectiveness of monetary policy in managing inflation
3. To derive development and modernization of our payments system
4. To achieve the goal of being amongst the 20 economies in the world by the year 2020
5. To create a great relationship between individual and it financial regulation
In the mind of the Central Bank Governor. Sanusi Lamido Sanusi. The following are the reason for the implementation of the cash-less policy
1. High cost of cash along the value chain form CBN and the bank to the traders and corporate bodies.
2. Reduce The high risk of using cash which also lead to financial lost.
3. Reduce high cash usage to eliminate corruption,leakage and money lunderry.
For everything in life there is a limitation and cash-less policy is not an exception, the limitation are as follows.
1. For individual, the daily free withdrawal limit is 500,000 while the daily free deposit limit is 500,000
2. It limit to the amount so far as it involves cash, irrespective of channel(ATM etc ) in which cash is withdraw or deposited
3. Illiterate cannot make use mobile transaction,
With all the reason made by both economic analysts and the central bank, do you fully support the implementation of cash-less policy?

By Kingsley
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cash-less economy


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