Branch Coordinator, Nigerian Inter Bank Settlement Scheme, Ilorin, Mr. Owoeye Oluwaseun, has said that the cash-less economy being implemented by the Central Bank of Nigeria will improve efficiency in financial transactions and enhance economic growth.

Speaking during a lecture, titled, ‘Cash-less economy: prospects, challenges and expectations,’ organised by Ilorin Bankers Committee, under the aegis of the CBN, Ilorin, on Monday, Oluwaseun added that it would also enhance effectiveness of monetary policy.

According to him, the policy will reduce associated risk of using cash, drive development and modernise Nigeria’s payment system as well as reduce revenue leakages and corruption.

He stressed that it would also significantly push awareness and usage of other electronic channels, such as Internet banking, electronic funds transfer, mobile payments and Automated Teller Machine payments.

Oluwaseun said it would also provide more efficient transaction options and greater reach as well as improve the effectiveness of monetary policy in managing inflation and driving economic growth.

He added that the policy would also lead to 30 per cent reduction in operational cost of banking operations, just as it would act as catalyst in capturing payment efficiency in terms of payment system transformation.

He said the cash-less economy policy would greatly benefit individuals and corporate organisation. According to him, it will increase their transactions possibilities; reduced risk of cash-related crimes and increase their cheaper access to (out-of-branch) banking services.

The banker listed other benefits of the policy to include its ability to increase processing/transaction time; aid electronic notification of all transactions on customer’s account and increase conveniences of utility bills payment.

Oluwaseun said, “For banks and CBN, the policy would reduce amount used in producing and processing monetary notes; reduce human resources devoted to cash counting on daily basis and increase the velocity of money.

“It will also reduce bank operational costs, thereby reducing bank charges passed on to customers. It will also reduce the volume of cash kept outside the banking system thus providing banks with more liquidity for lending to the need sectors of the economy, at attractive rates.”

He added, “It will also increas tax collection via automation for the government and lead to increased economic development due to increase in revenue generation. Also it will improve administrative processes and reduce revenue leakages and thus reduce corruption.”

Source: Punch/Sucess Nwogu