In order to reduce dependence on physical cash and the high cost of cash handling for financial institutions, Central Bank of Nigeria (CBN) introduced a policy in 2011 which emphasised cashless transactions across the country in order to___________.
CENTRAL BANK OF NIGERIA’S 2019 CASH BASED TRANSACTION POLICY
OBJECTIVES
To encourage a shift towards electronic-based transactions while reducing the circulation of physical cash (coins and notes) in the Nigerian economy. This strategic move aligns with broader goals of financial inclusion and enhancing payment efficiency.
POLICY INTRODUCTION
On Wednesday, September 18, 2019, the Central Bank of Nigeria (CBN) announced a new policy aimed at regulating cash-based transactions. The policy introduces a cash handling charge for withdrawals that exceed N500,000 for individuals and N3,000,000 for corporate bodies.
KEY FEATURES
CASH HANDLING CHARGE:
Applies to daily withdrawals exceeding N500,000 for individuals and N3,000,000 for corporate entities.
PRIMARY GOAL:To decrease the volume of physical cash circulating in the economy, promoting greater use of electronic payment methods for goods, services, and transfers.
IMPACT& INTERNET:While the policy does not seek to eliminate cash transactions entirely, it strategically incentivizes a move towards more secure and efficient electronic payment systems, benefiting both consumers and financial institutions in the long term.
e TRANSACT:INTODUCTION OF POCKET MONEY
OBJECTIVES:
To keep pace with Nigeria moving towards a cashless economy and offer an effective automated solution for financial transactions to the Nigerians;
STRATEGIC INITIATIVES:
In response to the N/B push on reduced cash use, eTranzact(Nigeria’s leading mobile money provider) released Pocket Moni a fully automated mobile banking system that aimed to simplify cashless monetary transactions over mobiles.
KEY FEATURES :
MOBILE BANKING SOLUTION :Allows users to transfer funds and perform other financial operations in a way it is never required to use cash.
MARKET POSITIONING:
Reinforces leadership of eTranzact in the Nigerian m-money space (any two criteria will suffice) — all nigerians have auditable, safe and accessible platform to engage.
IMPACT:
Nigerians to adopt digital payments and great cut on cash with less reliance on making financial transactions as an ordinary citizen with PocketMoni also streamline the process
PocketMoni Provides a Capability to:
Transfer funds effortlessly to any bank account or mobile phone in Nigeria, absolutely FREE of charge!
Get rewards when you register other users on the PocketMoni platform.
Book flights and hotels directly from your phone for discounted that you won’t get anywhere else.
Easiness to access your funds no matter where you are—access anytime, anywhere.
Receive or send funds anywhere in Nigeria instantly.
Get airtime for all Nigerian mobile networks easiLY Buy Assistant
Add multiple bank accounts to your phone for easier transactions.
Excellent value Pay just N150 per month once, less than what you pay to banks + VAT.
Instant access, reliable and available anywhere anytime but also so much more
PocketMoni other Features and Benefits
Having a bank account already means that you can use PocketMoni as a second bank account that could help you to better manage your money. As a friend once told me, "It’s not how much u take home, but how much you save". An example of this is opening a PocketMoni account and just make it super easy to track your money with some percentage of earnings being automatically sent towards savings and daily expenses. You may elect to put either 30% or 50% of your earnings directly into your bank account for savings each month but the rest 70% or 50% will remain in your PocketMoni account everyday spending. So easy, that habit of saving will follow you to make a solid financial base.
business of Akara (daily savings service for micro traders) can be set up, which follows this model in which you actually take daily savings from these small scale businesses. You will be collecting daily savings from these traders where you are taking a 10% on top gross amount they save. This creates a stable source of revenue and delivers a useful financial service to people who need access to daily savings structures.
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