The Central Bank of Nigeria plans to extend it cashless policy to five additional states effective from July 1, 2013, THE RAINBOW has learnt.

The cashless policy which has been in operation in Lagos for about a year is meant to encourage electronic and cheque-based payments over cash.

Under the policy, a lid placed on the amount withdraw-able in cash by both individuals and corporate account holders at N500, 000 per day and N3 million per day respectively.

Individuals cannot withdraw more than N150, 000 cash per day

It specifies stipulates penalties  for individuals and corporate organisations that want to withdraw or lodge cash above the prescribed limits.

The system, which has the advantages of pulling in cash into the banking system, reducing cost of printing or minting cash, and reducing customers queuing time in  banking halls, has been partially successful, with the many customers still struggling to understand the use of various electronic tools for payment.

The CBN had planned the extension of the policy to other parts of the country within six months but had delayed action due to challenges reported by users in Lagos, which was as a pilot scheme.

However, the bank, according to a source that accurate reliability record, has concluded plans to extend cashless regime to Anambra, Abia, FCT, Kano and Rivers by July.

According to the source, the apex bank chose these states based on the volume  of cash-based dealings in some of their major cities.

He attributed the delay in the nation-wide rollout to connectivity, explaining that of over  150,000 Point of Sales (PoS) machines in Lagos area less than 40,000 of them were active.

This e said the authorities of the CBN had blamed on lack of  live general packet radio service (GPRS) connectivity alive in some of the clusters

Source: Rainbow

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