culled from: http://nairabrains.com
Much has been said about the Central Bank of Nigeria Cashless policy set to take effect this year (March 1, 2012 for Lagos and June 1, 2012 for other states) but one thing you should be very concerned about is your readiness for this policy when it comes in full force.
You must understand what this policy is all about before preparing for it. I will try and explain it here.
Last year CBN introduced its cashless policy which stipulates daily limit for withdrawal and deposit into a bank account. The cumulative daily limit is N150,000 for individual accounts and N1,000,000 for corporate accounts. On exceeding this limit you will be charged a cash handling cost of N100 for every N1000 (i.e. 10% of the excess amount).
Now let me illustrate:
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.
If you handle more than N150,000 a day then you shouldn't sit and wait until this policy comes into force. The best way to get ready for this is to start going cashless or cashlite now. I'll give you options that you can consider below.
Internet Banking/Online Banking:
This enables you to do normal banking transactions through the internet. You can transfer funds, check your balance, pay bills and taxes, make FX transfer and FX sales. If you don't have an internet banking profile go to your bank and ask for it. The process is fairly simple, you fill a form and an account will be created for you. Make sure you ask them for internet banking token – a hardware that enables you validate you transactions online (GT Bank charges about N3000 for the token).
Electronic Payment cards
If you are the type that hates ATM/Electronic Cash cards then you better start liking them unless you are willing to pay 10% charges for your transactions that exceed N150,000 everyday. E-payment cards like interswitch Verve, Visa, Mastercard enables you to make payment for goods and services via Point of Sales (PoS) without handling cash. For example after buying something from supermarket you will just swipe your card on the PoS device and you authorize the payment which will then be transferred from your account to the merchant account. E-payment cards also enables you to shop online. Go ask your bank for one today if you don't have it yet.
E-Payment Channels (PoS)
On the other hand if you own a business that either provide direct service or sales to customers, you should seriously consider going for Point of Sale (PoS) device. This will enable you accept payment from customers without cash. This will reduce the risk involved in handling cash and you won't have to pay charges depositing excess cash to your bank. If you own an online shop or service, you can check for payment processing gateways/platforms to enable you accept payments online.
Mobile Money
Mobile Money is the major drive of CBN's cashless policy. It allows you to create e-wallet and store funds in your phone. You can use it to pay for goods and services at merchant locations that support mobile money. Many mobile money services are available eg Glo Txtcash, GTBank MobileMoney etc check them out for steps to register for it.
Don't even consider keeping you money at home because it is more risky. Most financial institutions are working hard to improve on the security of these platforms so be rest assured that your money is save. Starting going Cashless or Cashlite now!
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