New cbn cashless policy

The Central Bank of Nigeria (CBN) has introduced a cashless policy aimed at reducing the use of cash transactions and promoting electronic payments in the country. Here are some key aspects of the policy:

Objectives:

  1. Reduce the use of cash transactions and promote electronic payments.
  2. Increase financial inclusion by making it easier for people to access financial services.
  3. Improve the efficiency of financial transactions.
  4. Reduce the risk of fraud and money laundering.

Key Features:

  1. Cash withdrawal limits: The policy sets limits on cash withdrawals from ATMs, banks, and other financial institutions. For individuals, the daily limit is N500,000 (approximately $1,300), while for businesses, it is N3,000,000 (approximately $7,800).
  2. Cashless transactions: The policy encourages the use of electronic payment channels, such as mobile banking, online banking, and card transactions.
  3. Increased fees: The policy introduces higher fees for cash transactions, such as ATM withdrawals and over-the-counter cash withdrawals.
  4. Discounts for electronic payments: The policy offers discounts for customers who use electronic payment channels, such as lower fees for online transactions.
  5. Increased security: The policy aims to reduce the risk of fraud and money laundering by promoting the use of electronic payment channels, which are more secure than cash transactions.

Implementation:

  1. Phased implementation: The policy will be implemented in phases, starting with major cities and gradually expanding to other parts of the country.
  2. Monitoring and enforcement: The CBN will monitor and enforce the policy through regular inspections and audits of financial institutions.
  3. Public education: The CBN will conduct public education campaigns to raise awareness about the benefits of the cashless policy and how to use electronic payment channels.

Benefits:

  1. Increased financial inclusion: The policy aims to increase financial inclusion by making it easier for people to access financial services.
  2. Improved efficiency: The policy aims to improve the efficiency of financial transactions by reducing the use of cash and promoting electronic payments.
  3. Reduced risk of fraud: The policy aims to reduce the risk of fraud and money laundering by promoting the use of electronic payment channels.
  4. Increased economic growth: The policy aims to increase economic growth by promoting electronic payments and reducing the use of cash.

Challenges:

  1. Infrastructure: The policy may face challenges related to the availability and quality of electronic payment infrastructure, such as ATMs and internet connectivity.
  2. Public awareness: The policy may face challenges related to public awareness and adoption of electronic payment channels.
  3. Regulatory framework: The policy may face challenges related to the regulatory framework, including the need for changes to existing laws and regulations.

Overall, the CBN's cashless policy aims to promote electronic payments and reduce the use of cash in Nigeria. While there may be challenges, the policy has the potential to increase financial inclusion, improve efficiency, and reduce the risk of fraud and money laundering.