Cashless: You don’t need six months to adopt e-payment – Elegbe

By Babajide Komolafe & Providence Obuh

MitchelL Elegbe is the Managing Director/Chief     Executive of Interswitch, the first and biggest       electronic payment switching company in Nigeria. Prior to the cashless policy introduced by the Central Bank of Nigeria (CBN), the company in conjunction with its owner banks    introduced ‘Operation Cashless’.
The initiative was driven by the introduction of the Nigerian Debit card scheme, which allows banks to issue cards that can be used on any ATM or PoS on the network of the company.  Though it did not compel massive transition from cash to electronic payment channels in the
country, the initiative popularized and facilitated the use of debit cards and electronic payment. In this interview, he spoke on the cashless policy of the CBN.  According to him, the policy is good but there are so many things to be done to ensure successful implementation.

Stanbic IBTC lands mobile payments licence in Nigeria on the back of payments innovation

Johannesburg - September 12th, 2011 - Stanbic IBTC Bank, a member of Standard Bank Group, has been granted a licence to provide mobile payment services Nigeria. This development is believed will give further impetus to that country’s drive towards an increasingly cashless economy. 

Stanbic is one of seven players fully licensed to operate mobile money services in Nigeria in accordance with the country’s Mobile Payments Regulatory Framework. The regulatory environment offers customers protection from unscrupulous vendor practices and facilitates easy communication with the bank. 

The granting of the licence was in no small way due to some of the mobile and other payments solutions developed by Standard Bank’s payments innovations hub, Beyond Payments.  These included the e.susu (BlueSave) petty trader solution as well as a pilot mobile payments platform called Blue Cash. 

e.susu is a formal and technology-driven version of the traditional ‘esusu’ savings model that has been highly successful among banking traders, artisans, and lower income population groups.  Blue Cash currently offers person-to-person money transfers at designated agents or via a wallet across a spectrum of mobile phones and networks, allowing wide appeal and adoption and carrying with it low transaction fees for customers. 

CBN asks banks in Yenagoa to brace up for cashless policy

By Samuel Oyadongha
culled from: punch.com

The Central Bank of Nigeria (CBN) has directed banks in Yenagoa to continually education their customers to migrate to available electronic channels ahead of its planned introduction of cashless policy in Bayelsa State in June, this year.

Bayelsa is predominantly riverine with all the banks concentrated in the capital city leaving the other local government council area without banks with the result that those residing in the far flung hinterland of the state are compelled to travel to Yenagoa to transact business.
Though the policy started on January 1, 2012 in Lagos State, the service charges/fees would not apply until March 30, 2012 in order to give people time to migrate to electronic channels and experience the infrastructure that has been put in place.

POCKETMONI

PocketMoni is the brand name of eTranzact Mobile Money service. eTranzact Mobile Money platform is the first truly operational mobile commerce application that is multi network capable with the ability to interface seamlessly with third party payment schemes.

The service in line with international standards is secured utilizing 3DES encryption technology. In addition a PIN is required for every transaction. PocketMoni customers can securely, conveniently and cost-effectively send money to family and friends, buy airtime TopUp of any network, Pay bills such as: DSTV, Hi TV, MyTV monthly subscription, POSTPAID bills, PHCN bills and Make cash deposits, e.t.c:

Cash Less Policy to Tackle Money Laundering, Says Osibodu

By Obinna Chima
copied from: http://www.thisdaylive.com

The Group Managing Director /Chief Executive of Union Bank of Nigeria Plc, Mrs. Funke Osibodu has said that the cash-less  policy initiative that had been introduced in the system would go a long way to reduce activities of money laundering in the system.

Therefore,  Osibodu advised the Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN) to adhere to international standards as they grapple with new challenges of in the global market, even as she listed the new cash-less policy, anti- money laundering and countering financing terrorism as some of the challenges that the officer had to grapple with.

According to a statement from the bank, the Union Bank boss made the call in Lagos while addressing members of the committee at a general meeting hosted by the bank.
Osibodu said that the negative perception and threat to blacklist Nigeria in the global financial market stemmed from non-adherence to anti-money laundering and countering financing terrorism laws, saying that for the country to change such perception, the compliance function in different banks needed to be enhanced and made more stringent even as they participate in the international AML/CFT programmes so as to appreciate the country’s stance against money laundering.

Commenting further on the cash-less policy, she canvassed for shared experience and robust discussions amongst all stakeholders would help to tackle issues emerging from the new policy; pointing out that tremendous progress had been made in the electronic  banking products, mobile banking and prepaid cards.

She argued that the new cash policy would bring both positive and negative effect on money laundering, financing terrorism and other forms of financial crimes, saying that the positive impact would far outweigh the negatives.

According to her, the cash-less policy had come to change the face and mode of operations in Nigeria.

She said given that legitimate businesses were also used by the terrorist groups and their supporters to either raise funds in support of logistics and operational requirements to cover some activities of the groups or as a front for money laundering, the committee should develop the sensitivity and tools that could be in focusing on these areas.

Going Cashless & Cash Lite What are your Payment options

culled from: http://www.naijatechguide.com

You must have heard about the cashless policy of the Central Bank of Nigeria, CBN by now. Well, if you have not, it is a policy aimed at reducing the volume of physical cash circulating in the Nigerian economy. Core to the cashless (more like cash-lite) policy is the introduction of daily bank deposit/withdrawal limits above which account holders pay huge transaction costs.

Most articles on the cashless policy so far have focused on either announcing the policy or highlighting the challenges facing it. Very few have actually focused on what payment and transaction options are available to you if you require transactions above the daily limits without paying the huge cash handling charges or if you just want to go cashless or cash-lite. In this article we will be highlighting some of these e-payment and e-transaction options. 

Cashless Policy Overview

Before going through the payment/bank transaction options, let us first see what the cashless policy is all about. CBN has introduced 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. Above this daily limit you will pay huge cash handling cost of N100 for every N1000 (10%) above the limit.

So, you can withdraw above the limit, but it will be very expensive if not stupid. For example, if an individual withdraws/deposits N1,000,000 in a day, the first N150,000 will be handled free and the excess N850,000 will attract a 10% handling charge (i.e N85,000). 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. To avoid the huge charges you have to use e-payment and e-banking options. Note that if a third party deposits cash to your bank account it is you (account holder) that will bear the transaction cost.

read more here: http://www.naijatechguide.com/2012/01/going-cashless-cash-lite-what-are-your.html

CBN Exempts MFBs from Cashless Banking

• By Saka Khaliq

culled from: http://businessworldng.com

Following the kick-off of cashless banking in Lagos, the Central Bank of Nigeria(CBN), has exempted microfinance banks natiowide from the policy, BusinessWorld Intelligence can now reveal. To this end, microfinance clients as well as microfinance banks can now continue to deposit and withdraw above the apex bank's set limit.
The apex bank had earlier pegged cash withdrawal and lodgement limits by individual to N150, 000 and N1 million for corporate bodies, as its implementation commenced in banks within Lagos metropolis earlier in the year. Virtually all banks within the state have started the implementation of the cashless banking policy.
However, investigation shows that microfinance industry in Nigeria fully operate a cash-driven system, such that majority of transactions in the sub-sector are done  through cash movement. 
Only few customers embrace electronic banking as the use of ATM points by microfinance clients is very rare. Some, it was learnt, also engage in cheque transactions, but a large proportion rely on naira notes to engage in business dealings. The high illiteracy level in the sub-sector makes it difficult for cashless banking policy to work, with customers unwilling to buy into this initiative.
While customers in most cases deposit more than the said limit, they also withdraw above the stipulated limit, especially at the end of the month, when most small companies had to offset employees' salaries.
BusinessWorld Intelligence also revealed that credit canvassers of MFBs, are responsible for every transaction (withdrawal and lodgement) of their customers. All transactions are pulled together and this withdrawal is done en-masse by MFBs through their corresponding banks, which in most cases exceed this limit. 

read more about it here: http://businessworldng.com/web/articles/2244/1/CBN-Exempts-MFBs-from-Cashless-Banking/Page1.html

Going Cashless- Are we ready?

culled from: http://www.proshareng.com

The Apex bank CBN as part of its structural economic developmental program amongst others has been on set to fully activate its plans of the proposed Cashless Nigeria nay, a cashless society. 

 

Citing the raison d'être for this constructive innovation in an article; 'Further Clarifications on Cash-Less Lagos Project' the advancement suffice to say, would venture to:

 

i.           Create an efficient and modern payment system accommodating for economic growth.

ii.          Reduce the cost of banking services and increase transaction options.

iii.        Improve the effectiveness of monetary policy in managing inflation and driving economic growth.

 

Investors information correspondence- one of Proshare's core and passion for existence, propelled the move to seek to find the views and concerns of Local and Diaspora citizens profiled; -investors, professionals, HNI's and citizens at large via an online pool survey to determine the challenge envisaged in the full deployment of a Cashless Nigeria

read more about this here: http://www.proshareng.com/news/16153

4 WAYS TO GO CASHLESS OR CASHLITE IN NIGERIA

culled from: http://nairabrains.com

Are you ready for the CBN Cashless Policy?
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!

The hiccups in Sanusi’s cash-less policy

Written by Chris Agabi
culled from: http://sundaytrust.com.ng

It is no more news that the cash-lite or cash-less policy introduced
by the Central Bank of Nigeria to dissuade Nigerians from huge cash
transactions has begun. It is also no news that the pilot scheme
started in Lagos January 1, 2012. However, what may interest Nigerians
is the success or otherwise of the policy thus far. This is because,
the performance of the policy in Lagos will ultimately define how the
policy will be implemented in the rest of Nigeria commencing from June
1, 2012. In fact, it will tell if the project will succeed or fail.
These concerns have put promoters of the policy in the middle of the
storm following the barrage of criticisms that had greeted the policy
one year ago when it was first proposed by the Central Bank of Nigeria
(CBN) and Bankers Committee. Thus, for the operators, there is just
one goal – the policy must succeed.

What is cash-less policy?

By way of reminder, the cash-less policy is the migration from cash
based economy to electronic payment channels. The cash-less policy
does not in any way suggest there will no longer be cash in
circulation. The policy does not also prohibit withdrawals or deposits
above the stipulated amounts, but such transactions will be subject to
cash handling charges. The cumulative cash withdrawals/lodgements
daily limits are pegged at N150,000 and N1 million for individuals and
corporate organisations respectively. The limits apply to the account
so far as it involves cash, irrespective of channel (e.g. over the
counter, ATM, 3rd party cheques encashed over the counter etc) in
which cash is withdrawn or deposited (e.g. if an individual withdraws
N50,000 over the counter, and N150, 000 from the ATM on the same day,
the total amount withdrawn by the customer is N200,000, and the
service charge will apply on N50,000 - the amount above the daily free
limit). The limit also applies to cash brought through Cash-In-Transit
(CIT) licensed companies, as the CIT company only serves as a means of
transportation. Penalty fee of N100 per thousand and N200 per thousand
will be charged for individual and corporate organisation respectively
that transacts business above the limit. However, the charges shall
apply from March 30th 2012 in Lagos.

Read more about this topic:

UBA To Deploy 25,000 PoS Terminals In Lagos As Cashless Society Sets In

By Tekedia Editors
culled from: http://tekedia.com

As Nigeria gradually moves from cash-based to electronic based
transactions by virtue of Central Bank of Nigeria's (CBN) cash-lite
policy, United Bank of Africa (UBA) Plc which currently has 700
branches across the country has disclosed plans to deploy 25, 000 of
Point of Sale (PoS) terminals in Lagos by December 2012. Luqman
Balogun, group director, E-banking, UBA who made this revelation at a
media parley in Lagos on Friday, said the bank was fully equipped to
support CBN's financial inclusion strategy.

CBN’S CASHLESS POLICY: HOW TO TAKE YOUR BUSINESS CASHLESS AND SAVE MONEY

Last year the Central Bank of Nigeria (CBN) introduced a policy on
cash based transactions aimed at reducing the country's dependence on
a cash economy and reducing the inherent costs of moving cash that
banks and other financial institutions incur as a result.

The policy already known as the 'cash policy' of the CBN stipulates a
cash withdrawal limit of N150,000 for individuals and N1,000,000 for
corporate organisations. Extra cash withdrawals above the stated limit
attracts 10% fine of the excess amount for individuals and 20% for
corporate bodies.

According to the CBN the cashless policy was introduced to modernise
and develop Nigeria's payment system in line with th vision 2020 goal,
reduce cost of banking services which also involved moving around a
lot of cash and improve the effectiveness of the monetary policy.

While the CBN monetary policy does involve other rules such as
allowing only licensed cash in transit (CIT) companies to provide cash
pickup services we are concerned in this article with the cash
withdrawal aspects and check issuing rules in the policy as it will
affect your business.

As the policy is set to take off in Lagos by 30th March 2012 you
should already be prepared to turn your business or company into a
cashless or near cashless one and save costs in the process. Here's
how you can key into the Central Bank's cashless policy and save money
for your business.

1. Embrace Internet Banking: Chances are that you may still be going
to the bank for every banking need of your business. Registering your
business account for internet banking services will not only save you
the costs of having to go the banks for every little transaction you
will also save yourself the stress and time loss standing in queues at
the bank to pay in money to your suppliers.

With internet banking you can simply log into your bank account
dashboard and transfer the needed sum to your suppliers and creditors
without leaving your office. With internet banking you cannot run the
risk of issuing a third party check above N150,000 which according to
the CBN cashless policy cannot be cleared over the counter.

2. Start a Salary Payment Schedule: Do you have several staff and
still withdraw money to pay them salaries at the end of the month?
this is the time to change that. If your salary payments at the month
end is substantial enough you should meet your bank and work out a
salary schedule that will ensure that at each month end once you issue
the directives to your bank your staff's salaries are paid directly to
the accounts of each staff. That way you reduce the risk associated
with moving cash and you avoid paying penalties for overwithdrawing.

3. Convert Your Foreign Currency Income Directly Without Withdrawing:
If you run a business that brings in substantial foreign currency
there is a smart way not to lose part of your money to fines. Instead
of withdrawing the currency have it converted to local currency and
through online banking disburse the money for whatever purposes you
want to use it for.

4. Try Mobile Money: Recently the CBN introduced licensed mobile money
operators into the Nigerian financial space. This means that you can
take advantage of mobile money platforms to do any of the following;

- receive payments from clients more quickly.
- pay people faster
- pay for supplies/ services purchased straight from your phone.
- send, withdraw and save money all from your mobile phone.

While it is still a new wave in Nigeria's banking and money industry
you should explore and study the various mobile money services
available and choose the one you are most comfortable with.

Nigeria: Mobile Money - Banks Must Prepare for Possible Explosion

By Emma Okonji

culled from: THIS DAY Newspaper

Infosys of India, the world developer of Finacle core banking software has challenged Nigerian banks to be prepared to accommodate the expected surge in customer growth from mobile money transactions.
Vice President and Global Head of Client Services for Finacle Software, Mr. Sanat Rao, who spoke with THISDAY at a software seminar organised for banks in Lagos recently, said mobile penetration countries in Africa, especially Nigeria, was going to develop rapidly in terms of customer growth, because of the already established mobile devices.
"The situation of well-established mobile devices is already changing banking services as more people are using their mobile devices in financial transactions," Rao said.
The banks, he said should be prepared to experience more usage of mobile devices in financial transactions, especially as Nigeria is warming up for mobile money implementation.
"On our part, we are ready for such envisaged surge in terms of customer growth in the banking sector and we have already developed software that will address the challenge that will come with it."
According to him, Finacle Software from Infosys had solutions that would enable banks gainfully serve the under-banked and unbanked with relevant products and services.

"Finacle solution supports customer on-boarding using smart-cards and smart applications, supports delivery through channels ranging from laptops to specialised hand-held devices, and supports fingerprinting-based biometric authentication. The solution has extensive offline transaction processing capabilities, supported by a robust synchronisation engine," Rao said.
He explained that mobile banking was going to come much more bigger than the Internet banking, insisting that as mobile technology was changing rapidly, the banks must also change in terms of infrastructure deployment and in the use of core Finacle banking software from Infosys that was designed to bring ease to banking operations in the midst of mobile money transaction.

Relevant Links

• West Africa
• Nigeria
• Banking
• ICT

"Nigerian banks should expect high customer growth in mobile money transactions in 2012 and 2013. It is already happening in Nigeria, South Africa and most part of the world," he said.
The Central Bank of Nigeria (CBN) had earlier called on Nigerians to embrace electronic payment systems in all forms of financial transactions, insisting it would boost economic development, reduce financial risks and enhance financial inclusion.
CBN recently gave commercial approval to 11 mobile money operators, mandating them to carryout full mobile money operations in cities and remote parts of the country.
Mobile money supports Person to Person (P2P) transfers with immediate availability of funds for the beneficiary. Mobile payments are meant for low value transactions where speed of completion is key and it encourages cash -lite economy.

Experts List Hurdles Before Mobile Money Penetration In Nigeria

by Guardian

culled from STURVS

WITH the licensing of about 11 operators by the Central Bank of Nigeria in 2011 to commence the mobile money scheme in the country, experts have stressed the need to remove hurdles that could hinder the operation in the country.

According to experts, poor access channels, inadequate distribution or agency networks, lack of proper awareness and poor mass education among others were possible major hindrances to the burgeoning industry.

Already, Financial Analysts have estimated Nigeria's mobile money market to worth N150 billion, adding that with right policies in place and the industry well managed, the industry could grow to N300 billion soon.

Specifically, the Principal Associate, Mobile Money Africa, Mr. Emmanuel Okoegwale, on Monday in Lagos, said that mobile money was a mass-market product that would require mass access channels to reach all market segments.

According to him, some mobile network operators were yet to open up mass access channels like Subscriber Identification Module toolkit and Unstructured Supplementary Service Data for mobile money providers.

He explained that mobile money is the transfer of monetary value via the mobile phone, which fundamentally rode on mobile networks.

Okoegwale said that without opening up of the access channels by network operators, "it will be an uphill task to reach the masses and provide an easy and convenient means to access the service."

According to him, mobile money should be a service that the urban and simple rural folks should be able to understand easily and use.

He lamented further that the distribution or agency network was a major problem in leapfrogging the mobile money revolution in the country.

Corroborating the need for an expansive agent network, Chief Executive Officer of Fortis Mobile, one of the mobile money operator, Mr. Henry Nwawuba, during their signing in agreement with MTN Nigeria in Lagos in December, said that the importance of rapid agent network, could not be overemphasised if the service must succeed.

"Without the agent network, mobile money will not work. In Lagos, we have about 420 agents. In Abuja, we have about 1000 while in Port Harcourt we have activated 200 agents," he said.

Explaining the services that were available to Nigerians on the network, the managing director of Fortis said that the company would provide basic mobile financial services such as fund transfer, deposit and withdrawal from the bank account, which could be done at an agent location in the community. Before a customer could access to these services, such a customer must have opened a mobile account.

Experts also argued that the country required over 50,000 agents, who will serve as human banks and engaging in cash-in and cash-out across the country for the over 60 million financially excluded Nigerians to significantly feel the impact of the mobile money revolution.

Furthermore, at the launch of Paga in Lagos, the Chief Executive Officer, Paga Tech, Mr. Tayo Oviosu, had said that the country's mobile money industry had the potential to grow to over $1billion in the next five years, stressing that if this must be explored adequately, major infrastructure including access channels, wide agent networks must be on ground.

According to him, Paga has about 5000 agents in major cities of Nigeria, including Lagos, Abuja, Port Harcourt among others.

In view of this, Okoegwale said that while all providers were struggling to roll out their own agent networks to serve the subscribers, the challenge would be to develop a well-connected and positioned agency network.

He said: "It is possible but it will require significant resources and budget to actualise. It may also take some time to reach every nook and cranny of Nigeria.

CBN, banks meet tomorrow over cash-less Lagos

culled from THE NATION | by Ayodele Aminu

link: http://www.thenationonlineng.net/2011/index.php/business/32206-cbn-banks-meet-tomorrow-over-cash-less-lagos.html

Following the teething problems encountered by bank customers in their attempt to key into the  cash-less banking initiative, which started on Monday in Lagos, the Central Bank of Nigeria (CBN) has called for a breakfast meeting with all the deposit money banks in the country.

The meeting, which will also have in attendance key officials of the Nigeria Inter-bank Settlement System (NIBSS), The Nation, gathered, will be held in Abuja tomorrow at the CBN head office. It will be chaired by the CBN Governor, Mallam Sanusi Lamido Sanusi.

Bank, according to information, are expected to explain the progress so far made on the cash-less Lagos; the status of their preparedness; inter-operability challenges and actual number of Point of Sale (PoS ) terminals deployed.

Other issues that will be discussed include charges for e-payment; structure of customers' support as well as handover of  Pos to the companies  that will maintain and support them.

 Amid confusion occasioned by banks' financial year end that temporarily disrupted their operations, customers encountered difficulties in trying to use online banking platform of some banks. They could not transfer funds because of network failure. 

Besides, customers still engaged in cash transactions above the limit.

At many of the bank branches visited, customers still made deposits and withdrawals far above the N150,000 for individuals and N1 million for corporate organisations, specified by the apex bank. 

Managing Director, NIBSS, Mr. Niyi Ajao, said the compliance level will increase when the CBN's penalty for defaulters begins from March 30. He said many bank customers are used to huge cash transactions, stressing that when the implementation of the penalties begins, customers will adjust to the new reality. 

The NIBSS provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks, discount houses and other financial institutions.

Key among the factors militating against the cash-less initiative is the deployment of PoS terminals – majority of which are being held at the ports by the Nigeria Customs Service (NCS).

Speaking on the sidelines of a seminar organised by the Committee of e-Banking Industry Heads (CeBIH) in Lagos last month, Deputy Governor, Operations at CBN, Tunde Lemo, said NCS was constituting a roadblock to the apex bank's target of deploying 40,000 PoS terminals by the end of last year to cater for settlement of transactions, alongside other electronic payment options 

Lemo said the NCS classifies PoS terminals as 'cash registers' and so was demanding 20 per cent administrative charges on each terminal being imported by the commercial banks, and coordinated by the CBN instead of the usual five per cent. 

He said this has significantly affected deployment of the terminals, ahead of initial implementation of the initiative in Lagos. 

Lemo said attempts to make the Customs Service see reason had fallen on deaf ears, including written letters to the Comptroller-General of the Service. He, however, said CBN was ready to dialogue with the NCS but will invoke the aid of relevant political authority to arbitrate on the issue, if need be. 

The apex bank had set a new target for commercial banks to roll out additional 75,000 Automated Teller Machines (ATMS)  across the country by 2015 to encourage the cash-less economy policy of the apex bank. 

Tags: CBN, mobile money, Cashless Nigeria, Cashless Lagos

Cashless Lagos takes off amid anxiety

culled from:NIGERIAN TRIBUNE

http://tribune.com.ng/index.php/news/33620-cashless-lagos-takes-off-amid-anxiety

The much talked about cashless Lagos formally commenced on Sunday amid further clarifications from industry regulators and top state government officials.

The cashless policy, an initiative of the Bankers' Committee, was introduced by the Central Bank of Nigeria (CBN), to drive development and modernisation of the nation's payment system in line with the Vision 2020.

It is meant to gradually move the nation away from a cash-based economy to electronic payment system in line with what obtains in developed economies of the world.

Lagos State had been chosen as the pilot project before spreading to some key cities in the country by June this year.

Investigations by the Nigerian Tribune showed that though the policy took off during the public holiday when banks were not open for business, the CBN, banks and Lagos State government officials had spent the last few weeks enlightening members of the public on the desirability and modalities for effective implementation of the policy.

Only last week, the apex bank shifted the service charges/fees for those transacting cash above the stipulated amount in Lagos to March 30, 2012, stressing that it was in order to give people time to migrate to electronic channels and experience the infrastructure that had been put in place.

"Therefore, banks should continue to encourage their customers to migrate to available electronic channels, and where possible demonstrate the costs that will accrue to those that continue to transact high volumes of cash from March 30th, 2012 in Lagos State."

CBN explained that the service charge for daily cumulative deposits above the limit into an account would be borne by the account holder, noting that during the pilot in Lagos, individuals paying money from Lagos, into an account outside Lagos, would bear the charges for any single transaction above the daily limit.

"Charges/fees shall apply for all transactions in Lagos, and on Lagos State based accounts. Transactions initiated out of Lagos State, and affecting a Lagos based account shall not attract charges/fees, and shall not be counted as part of the daily," it stated.

The limits are cumulative daily limits each for withdrawal, and for deposits. For individuals, the daily free withdrawal limit is N150,000; while the daily free deposit limit is N150,000. The limits apply to the account so far as it involves cash, irrespective of channel for example over the counter, ATM, 3rd party cheques encashed over the counter, etc in which cash is withdrawn or deposited.

For instance, if an individual withdraws N50,000 over the counter, and N150,000 from the ATM on the same day, the total amount withdrawn by the customer is N200,000, and the service charge will apply on N50,000 - the amount above the daily free limit). The limit also applies to cash brought through CIT companies, as the CIT company only serves as a means of transportation.

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Central Bank Releases Guidelines for Cashless Lagos, Rules Apply from 1-1-2012

CULLLED FROM: BUSINESS NEWS
http://businessnews.com.ng/2011/12/29/central-bank-releases-guidelines-for-cashless-lagos-rules-apply-from-1-1-2012/

The CBN released guidelines for the implementation of Cash Lite Lagos beginning, January 1^st, 2012.

Under the guidelines released by the CBN, banks are expected to stop providing CIT (cash in transit) services to merchant customers.

CIT services will henceforth be provided by CBN licensed carriers. Banks that continue to provide CIT services will be penalized by the apex bank.

Another guideline bound to shake up the banking system in Lagos when it takes off is the restriction of encashment of 3r party cheques valued above N 150,000 over the counter. Such cheques are expected to pass through the clearing house.

Individuals now have a daily "free" withdrawal limit of N 150,000, whilst corporate may withdraw N 1,000,000. Any withdrawals above these amounts are subject to charges of N100 per every N 1000 for individuals and N200 per every N 1,000 over the limit or 20%. These charges are meant to serve as a huge disincentive for those who keep tons of cash circulating in the economy.

The CBN has however stated that these charges/penalties will not take effect until  March 30^th 2012.

Account holders will bear the charges of any cash deposit transactions over the limit. Interstate transactions will attract charges if they are outgoing from Lagos and not incoming into Lagos as the rules will only apply in Lagos during the pilot stage.

For instance, an individual in Lagos paying in money over the limits into an account in Onitsha will pay the charges for the account holder until the rules take effect in other parts of Nigeria. However an account holder in Onitsha paying money over the limit into an account in Lagos will not bear any charges.

The rules are quite easy to understand, however they may likely cause confusion and discomfort in the early stages.

View the entire guidelines from the Central Bank here

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Kindest Regards

sludba Team

 4 Ikosi Road

 Ikosi-Ketu

 Lagos-Nigeria

234 805 783 8282
 234 806 361 2572
234 809 514 5111

234 807 070 8795

234 805 844 9177
 

UBA: E-banking solutions for Cash-less expectations

culled from:VANGUARD NEWSPAPERS

http://www.vanguardngr.com/2012/01/uba-e-banking-solutions-for-cash-less-expectations/

From tomorrow, Lagosians would not be able to cash cheques above N150,000. They must pay such cheques into their accounts. This is because tomorrow marks the commencement of the pilot scheme of the cashless policy of the Central Bank of Nigeria.

It started last year, when the CBN, in an attempt to discourage use of cash for payment and encourage use of electronic payment channels, introduced limits on free cash transactions, and charges imposed on cash transactions above that limit. For individuals, free cash transactions is limited to N150,000 and the charge is N100 per extra N1000 above this limit.

For corporate bodies free cash transaction is limited to N1 million and the charge is N200 for extra N1000 above the limit. The apex bank also banned banks from free cash pick up services for their customers. Although the implementation of the policy is schedule for June this year, the apex bank decided to test run the initiative in Lagos through a pilot scheme tagged Cash-less Lagos.

The purpose of the policy according to the CBN is to reduce the high usage of cash, moderate the cost of cash management and encourage the use of electronic payment channels.

In addition to industry efforts to encourage use of electronic payment channels, which include massive deployment of Point of Sale Channels (PoS) across the state, the CBN also expects banks to develop introduce electronic payment channels and encourage their customers to use them instead of cash. "Winners in the 'Cash-less' economy will be the proactive parties that identify opportunities, and who overcome challenges by developing appropriate solutions for their customers", said Eyitope St. Mathew-Daniel, Head, Shared Services, CBN.

It is in fulfillment of this expectation that UBA rolled out an array of electronic payment products all designed to facilitate cash-less banking transactions and payment of goods and service.

The products namely Afritrade, AfriCard, Africash and U-mobile, are designed to reduce to the barest minimum the need for customers to use cash for any transaction and also to extend banking to the unbanked. Three of the first three products are trade related and are meant to facilitate trade transactions across the continent. AfriCash is a secured electronic payment service that allows money transfer across African countries where UBA has a presence and can be collected within five minutes, payout been available in dollars and local currency.

AfriTrade is designed to give customers convenience in payments to third party in any part of the continent. Commenting on how the service works. Customers of AfriTrade are required to apply for trade transaction at any UBA business office with necessary documents while the initiating UBA location advises the benefiting UBA location in the country of the beneficiary and on receipt of transaction message, beneficiary is notified immediately via phone/e-mail and official written notification is sent within 24hours enclosing original copy of the transaction instrument where applicable, and goods are shipped (or services rendered) by beneficiary. AfriCard is a Visa Prepaid debit card variant which is set up without need for the customer to own/operate a bank account with UBA.

To compliment these UBA introduced U-mobile, the country's first mobile money services. With U-Mobile the customer will have a mobile account called U-Mo, created with the his/her telephone number. The customer operates the mobile account through his/her phone and can perform a range of banking transactions.

It is the product of the bank's partnership with Afri-Pay Limited, a mobile payments service provider offering mobile financial services to the unbanked and banked population across Africa.

Group Managing Director/Chief Executive Officer, United Bank for Africa (UBA), Mr. Phillips Oduoza said the U-Mo mobile money services will revolutionize the banking industry just as the GMS has done in the telecom industry.

He said of the about 80 million Nigerian adults in the country, only  25 million people has bank accounts while  the rest 55 million are unbanked, a situation he hope, mobile money would be able to remedy.

"U-Mo is an instant account opened on your mobile phone with just your contact details and mobile number. U-Mo then allows you to do banking transactions with your mobile account anytime, any day and with U-Mo, the customer can save money, send money to any mobile. pay with mobile, pay bills, buy airtime credit, withdrawal and deposit at any agent and UBA branch" Luqman Balogun, Divisional Head, e-Banking, UBA

He said U-Mo has a lot of benefits which makes it very attractive to customers than conventional bank accounts. These he said include zero no minimum balance, no maintenance fee no transaction fee for airtime credit, no COT, free SMS notifications for every transaction, and free online access to your account.

Dr. Yinka Adedeji, Chief Executive Officer, UBA/Afripay, said the  product  targeted mainly on the unbanked and semi-banked population provides the masses affordable banking services with embedded security features to ensure that users of the product do not experience loss of money.

U-mobile comes in three variants designed to ensure that all customer segments are covered. These are U-Mo Silver, U-Mo Gold and U-Mo Platinum. U-Mo Silver is for customers with very little information and it allows them to spend or pay up to N3,000.00 per transaction and up to N30,000.00 per day whilst U-Mo Gold is for customers with contact information and details.

A U-Mo Gold customer is allowed to spend or pay up to N10,000.00 per transaction and up to N100,000.00 per day" he explained.

U-Mo Platinum is for the more sophisticated customers who are allowed to spend or pay up to N100,000.00 per transaction and up to N1,000,000.00 per day. He said "to qualify for U-Mo Platinum you have to provide detailed information including a verified address and a reference.

On security of transactions on U-mo, Adedeji explained that U-Mo provides higher level of security than cards, given that you require four-digit Personal Identification Number (PIN) and possession of your mobile phone to perform any operation. He said that U-Mo Mobile money is available to all mobile subscribers irrespective of their mobile service provider i.e. Glo, Etisalat, MTN, Airtel, etc just as it is available for those with or without bank accounts in UBA.

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Kindest Regards

sludba Team

 4 Ikosi Road

 Ikosi-Ketu

 Lagos-Nigeria

234 805 783 8282
 234 806 361 2572
234 809 514 5111

234 807 070 8795

234 805 844 9177
 

MTN, Guaranty Trust Bank, Others Partners On Mobile Money

culled from:THE TIDE

http://www.thetidenewsonline.com/2011/12/30/mtn-guaranty-trust-bank-others-partners-on-mobile-money/

MTN Nigeria, in Partnership with Guaranty Trust Bank (G.T. Bank) and Fortis Mobile Money, has launched a new Mobile Money Service.

The Tide learnt that the launch took place within the month at the Civic Centre in Lagos.

According to MTN, the launch followed several months of commitment among the partners with the support and guidance of the Central Bank of Nigeria (CBN).

Chief Executive Officer MTN Nigeria, Mr. Brett Goschen, said that there are much awaited mobile Money Service that will dramatically change the face of communications and financial services in Nigeria.

Goschen, also said that it will provide a new dimension and pleasarat experience to Nigerians.

He explained that the package is safe Quick simple, adding that it is affordable and unique to send and receive money within the country.

The MTN boss, said customers will enjoy their pay for efficient services using MTN Mobile line.

He informed that the newly launched system, offered to the masses is a licenced financial services providers as well as partner to banks.

The Tide further gathered that the package will not only be a market leader but a giant in the information and communication technology (ICT).

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Kindest Regards

sludba Team

 4 Ikosi Road

 Ikosi-Ketu

 Lagos-Nigeria

234 805 783 8282
 234 806 361 2572
234 809 514 5111

234 807 070 8795

234 805 844 9177
 

CBN BANS TELCOS FROM MOBILE MONEY ADVERTISEMENT

 

culled from: zimbio

http://www.zimbio.com/Nigeria+Today/articles/NxFTK7abzG1/CBN+BANS+TELCOS+MOBILE+MONEY+ADVERTISEMENT

The ban was communicated via a circular to all mobile scheme operators, signed by Mr. Gaus Emokpae, Ag. Director, Banking & Payments System Department, CBN.

The circular said, " It has come to the attention of the Management of Central Bank of Nigeria that Mobile Network Operators (Telecommunication Companies) have been carrying out public media advertisement on behalf of Mobile Payments Scheme Operators thereby sending wrong signals to the public as well as causing disaffection among the Scheme Operators.

"This is totally unacceptable. For the avoidance of doubt, no Telecommunications Company (Telcos) had been licensed by the Central Bank to operate any mobile money scheme in Nigeria.

CBN Governor, Sanusi

However, the Bank is not unmindful of their critical roles, and hence the explicit assignment of responsibilities to them in the Regulatory Framework for Mobile Payments Services as infrastructure providers. Such responsibilities should be based on criteria which are transparent and generally applicable to all Scheme Operators without discriminatory practices against any scheme operator.

In order to build and sustain public confidence in the mobile payments scheme, it is hereby directed that henceforth, on no account should any Mobile Network Operator be allowed to advertise on behalf of any Scheme Operators or tie the operation of their system to any network.

"Customers should be able to operate the mobile payment system from any telecommunication network of their choice. Failure to adhere to this directive will attract appropriate sanctions and could lead to withdrawal of already granted license."

Kindest Regards

sludba Team

 4 Ikosi Road

 Ikosi-Ketu

 Lagos-Nigeria

234 805 783 8282
 234 806 361 2572
234 809 514 5111

234 807 070 8795

234 805 844 9177