THE IMPACT OF CASHLESS POLICY ON ECONOMIC GROWTH OF NIGERIA (A STUDY OF NIGERIAN BANKS)
Abstract
Cashless policy is the regulation made by the central bank of Nigeria to simply move from a
driving economic development (CBN website 2011).The most outstanding cashless banking
Despite the benefits associated with the policy, there have been some constraints and challenges
choice than to deal with cash directly. Many are of the opinion that the cash limit set by the
pointsof sales terminals, telephone banking and automated teller machine (Odumeru 2013). For
clarification purposes the introduction of cashless policy in Nigeria would moderate the cost of
associated with travelling around with lots of physical cash.
confronting thepolicy, these include: the infrastructures which have not been good enough
toward a cashless society. Based on the above, the central bank of Nigeria introduced a policy
which stipulates that no individuals and businesses will be allowed to withdraw above Five
payments, stimulates and develops the payment system while also curbing the criminality
commercial, personal, local and international trade. The policy also aimed at reducing the cost of
each management, reduces lending rate, encourage the use of electronic payment, individuals
Thestudy will help to analyse the cost and benefits of payment instruments involved in the shift
and organizations will convert paper money to bank deposits. It also helps to modernize the
system failure are experienced most times at point of transactions leaving individualswith no
Hundred Thousand Naira (N500,000) and Three Million Naira (N3,000,000) and any amount
non physical cash mode of payments in settlement of all types of transactions including
banking services and improving the effectiveness of monetary policy in managing inflation and
central bank is too low and also query how the bench mark was arrived at.
gradual physical movement of payment system with the use of a systematic adoption of other
channels over the world are mobile banking, internet banking, electronic card implants, and
giving way to ineffectiveness. The technology access for the transaction are not effective as
that exceeds the stipulated limit attracts a cash handling charge of 3% for individuals and 5% for
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