Mixed Reactions Trails the introduction of cashless policy

CBN Office Abuja

CBN Office Abuja

What is Cashless Policy? In
Economics, Accounting,Banking & Finance,it is simply defined as the functioning, operations, or performances without using coins or banknotes for money transactions but instead using credit cards or electronic transfer of funds ,ie cashless shopping or shopping without physical cash!

In Umuahia
The cashless policy of the CBN which took off in Abia on Monday has attracted mixed reactions from members of the public. Many residents in Umuahia were still in the dark on the operations of the policy. Mrs Anthonia Enyinnaya, a trader in Umuahia, said that the commencement of the policy took many people by great surprise.
“Many people are yet to be acquainted with the nitty-gritty of the policy and most of us heard about it here in the bank for the first time,” Enyinnaya said.
She said the CBN should have done a lot of sensitisation on the policy to create the necessary public awareness before implementing it.
“The implementation of the policy without adequate sensitisation will cause confusion and distortion in the economy.”
Mr Emeka Okafor, a public affairs analyst, said that CBN had good intention for introducing the policy, but argued that the implementation should come after proper sensitisation of members of the public.
“I have gone round the Umuahia main market and some banks today to find out people’s reactions and expectedly many are still ignorant about the policy.
“For any government policy to succeed there should be adequate public enlightenment to create the necessary awareness and public acceptance of the policy, otherwise it will fail,” he said.
Mr Jude Amadi, a cash officer in one of the new generation banks in the city, however, dispelled fears being expressed by some residents
Amadi, who admitted that many customers were ignorant about the policy, said that banks were still educating their customers on the policy and its procedure.
“We understand that many people are yet to understand the details about the policy, so we take time to explain to them how the policy works,” Amadi said.
Amadi said the policy had a lot of benefits to the banks, the people and the economy, adding that people should embrace the policy without entertaining any fears.
He said the policy made it mandatory for banks to confirm cheques of over N500,000 to protect the interest of the person that issued the cheque.
Amadi said that the two per cent charge for cash deposits or withdrawals might not take effect on Monday, being the first day of the commencement of the policy.
Chief Festus Mbachu, officer in charge of the “Cashless Champion” unit at the Umuahia branch of CBN, said the policy was introduced to reduce the volume of cash people carry around for transactions.
Mbachu said the policy would facilitate the nation’s economic growth.
He said the initial challenges associated with the policy implementation would soon ease, pointing out that the apex bank was still carrying out public awareness and sensitisation

Meanwhile,The Central Bank of Nigeria (CBN) on Tuesday announced the deferment of charges for individuals and corporate account holders who wish to withdraw or lodge cash above the prescribed limits in the Federal Capital Territory (FCT) and the five states where the policy was recently commenced till October 1, 2013. The other states are Abia, Anambra, Kano, Ogun and Rivers.

The decision, according to the central bank, is to allow bank customers adjust to the new policy in the states.
The Director, Corporate Communications (CBN), Mr. Ugochukwu Okoroafor, confirmed this to THISDAY.

Investigations on Monday showed that bank customers in the FCT were still struggling to come to terms with the policy.
To this end, some commercial banks yesterday notified their customers of the development.
What do you think of this cashless policy and how effective do you think it will be?

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