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Implications of Cashless Society

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THE IMPLICATIONS OF CENTRAL BANK OF NIGERIA (CBN) CASH-LITE POLICY ON FINANCIAL/CORPORATE MANAGEMENT

Introduction
Owing to the huge cost of cash handling by Deposit Money Banks (DMBs) in the country, the Central Bank of Nigeria introduced Cash-lite policy to drive people towards alternative e-Channels to reduce the handling cost. The policy was introduced last year. It has officially taken off in Lagos with effect from 1st March, 2012 to commence in other states by 1st June, 2012.
The Cash-lite policy is aimed at reducing the volume of cash transactions in the Economy through Point of Sales terminals (PoS), web payment, mobile money and Near Field Communications (NFC) transactions. This enables the payment for goods and services via Point of Sales (PoS) without handling cash. The policy stipulates a cumulative daily limit of N150,000 for individual accounts and N1,000,000 for corporate accounts for withdrawal and deposit into a bank account.
On exceeding this limit a cash handling cost of N100 for every N1000 (i.e. 10% of the excess amount) is charged. For instance: If you withdraws/deposits N1,000,000 in a day, the initial N150,000 will be processed free but you will be charge 10% handling cost for the excess N850,000, this means you will be paying N85,000 as charges. So, under the cashless policy you will be debited for N1, 085,000 if you withdraw N1, 000,000 and credited for N915, 000 if you deposit N1, 000,000. With the policy, a private/individual account can only do a maximum cumulative cash transaction of N150,000 with a service charge of N100 per additional N1,000, while a corporate account can only do a maximum cash transaction of N1 million with a charge of N200 per extra N1,000.

Channels of Cash-lite transaction
The Cash-lite transaction can be undertaking through the following mediums:
Internet Banking/Online Banking: This enables normal

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