doofanc:

you still don't get it. You can still do your day to day transactions provided it's below the daily limit for deposits and withdrawal.. Like i asked a previous poster, how often do you buy DAILY foodstuff worth 150grand?

Look my friend, it will not affect ordinary man because a common Nigerian live below N1000 a day and almost 70% earn less than 150k per month but it will affect businesses and increase internet fraud. If you want to buy a car worth of 1million for instance, how many days will you withdraw 150k to keep in your house to complete 1million because right now Nigerians fruadsters have gone gaga in terms of internet banking manipulation. Do you know right now that you can receive a credit alert of a particular transaction without seeing any money in your aacount? They have done this to scam many auto dealers after they must have escaped with the car and that is why many auto dealers prefer cash. Either we like it or not, it will have some negative impact on businesses.


Gbammm over and out

If I may ask, will our law enforcement agent prosecute officials who spend the public fund on large withdrawal charges? As they may be very determined to convert their loot into cash.

For more on the new cash policy, see http://cashlesslagos.org/

doofanc: I'm fully in support of the cashless policy. My initial resistance was largely due to ignorance of its workings.

Now i can sit in the comfort of my bedroom, and with just a laptop and internet connection effect cash transactions in seconds that would normally stress the hell of you in the usually overcrowded banking halls.

There are of course teething problems, as it is with most new policies. These will hopefully resolve with time.

person wey no get laptop na?

achi4u: pls those who knows how this thing(cashless economy) work should xplain further to us.
So if i want to go and buy garri and stuff...if am confuse! pls those who knows how this thing(cashless economy) work should xplain further to us.
So if i want to go and buy garri and stuff...if am confuse!

Be streightfoward....mtcheew!!!

@2tru talk

let me shed a little light on some questions you have raised
Ques 1:First, how will the bank handle an excess limit deposit made in Lagos State in favour of an account holder who lives outside the State, will the person's account be debited?
Ans:Since the deposit is being made in Lagos,the depositor(and not the account holder) will have to bear the charges once the maximum deposit limit is exceeded.

Ques 2:Secondly, how will the bank handle an excess limit deposit made by someone outside Lagos State in favour of an account holder who is a resident in Lagos State, will the person's account be debited?
Ans: No,the account is not debited since the deposit is being made outside Lagos and the policy is yet to kick start outside Lagos.

Ques 3:Thirdly, will the policy affect only those whose accounts are domiciled in banks located in Lagos or anybody who makes deposits/withdrawals within the boundaries of the State irrespective of where the account is domiciled?
Ans: For now the policy affects anybody who makes deposits/withdrawals within the boundaries of Lagos State irrespective of where the account is domiciled

@ All
I think there are some misconceptions about this whole 'cash-lite' policy of the CBN.You can approach any bank to throw more light on it and some doubts about this policy will be cleared off but for the sake of information i will try and highlight some important points here:

1. Your normal day to day transfers of any amount can be done without attracting any charge.The emphasis here is CASH.As long as no cash is being handled,u are free from any charge what so ever.This would result in more people having accounts with banks for their day to day transactions.

2. Someone said that people get swindled due do fake text messages they get for transactions that never happened;there are many ways to checkmate this:
i. I know that some banks have various means of verifying credit alerts on their phones where by they can send codes to selected numbers to validate if a transaction is dubious or not.Contact your bank to get such information
ii. You can call your account officer to give you details on the balance on your account after a deal has been done
iii.You can also verify it online through your internet banking platform where you can check the cash flow in your account
iv. Account balances can be checked through the ATMs and POS machines.
v. You can walk into any branch of you bank to get the balance on your account.
3. People can even carry out transactions with their phones such as paying of bills(PHCN,DSTV etc),phone top-up,cash transfers etc.

4. As regards online frauds,i think i will be lying if i say it would not be an issue but there is a way around and this is MY opinion:
i. If u have 2 accounts and you feel maybe you don't want to 'risk' being defrauded, you could tie one down to the electronic payment channels(ATM,internet banking,POS) where you might feel that a loss might not be detrimental to your business.
ii. NEVER give out details of your cards(credit cards,debit cards etc) to anyone or 'anything'(online i mean ).
iii. Always be in touch with your account officer.
iv. There are set limits when doing online transactions so this also acts like a check.Contact your bank to know the limits.

Issues will definitely arise 'cos this will certainly change our lifestyles and change doesn't come easy but such issues cannot be insurmountable if we set our minds to overcome them.

CAVEAT: I don't work for the CBN or the government so i cannot say i covered every ground with this post so any one that needs SLS's attention,please kindly forward it to him for answers

Ibanga p:
person wey no get laptop na?

you can also use your handsets. Most banks now have their mobile money platforms. You just need to install and/or configure the phone with the appropriate software.

If the transaction is payment for a good or service, another option is to proceed to your bank and have them wire the funds for you to the vendor's account. First bank already does this. (not sure of others)

i hope dere wont b sacred cows

Electricity issue has to be considered as well.

I dont think Nigeria is ripe for this, it wouldnt work. People will circumvent it

Chuck D: the world grav its 11:45pm. Rev 13v17. After the cashless society is attained, next move will be implants - and that, my people, is the mark talked about.

@OP, I do think if the loopholes can be tackled, this new policy will be a change for the better.

but let me get something straight. say I transfer 300,000 using my mobile phone to another account, I wont be charged for exceeding the N150,000 limit??

Sanusi is just trying to kill banking industry that is already enjoying high momentum in patronage . Thereby encouraging islamic banking where there would be no charges on extra .

However , the policy would be beneficial at the long-run . But the KEYNESIANS school of thought said it all - that at the long-run we are all dead .

Life is in process . No point rushing into policy that may be disastrous to the economy . My best .

muyoto: but let me get something straight. say I transfer 300,000 using my mobile phone to another account, I wont be charged for exceeding the N150,000 limit??

nope

Then Mobile Banking it is. Good idea!

Does CBN (a federal government institution) have the right impose a policy on Lagos State alone? I thought there is a law which prohibits discrimination on the basis of state of origin or residence.

If CBN wants to introduce a policy, especially a policy which involves "charges", the policy should be introduced nationwide at the same time. After all, when new naira notes are introduced, it is not done on a state by state basis.

^^^ You can't roll it out to all states at the same time. You roll out to one and see if it works.- Pilot.

Anyone who does millions of naira in business daily and does not want to move to cashless would soon be out of business. Get with the times.

b_Happy: nope

then i must say its a wonderful idea.

This is beginning of 666

I know this policy wont work. Alaba boys would find a way of making cash availabale for their transactions by contributn funds and keep it in a safe place rather than banks.

The loosing end would be the Banks.
Why is the pilot test only in Lagos? Why not start in Abuja too? Sahaad Stores in Abuja would tell you to withdraw the cash from the ATM and pay.

Our ATMs also have epileptic issues too. Imagine performing a trxn on the ATM and PHCN strikes, how do you reverse the trxn or how would the merchant reconcile the trxn if you part with the goods on a positive note that the trsfr was successful.

SLS knows his fellow moslem brothers wont even encourage him thats why he first created Islamic bank which is based on free interest trxns.

Even in UK we still buy stuffs in the market with cash.

Lets watch and see how it turns out.

I don't see how this will benefit the economy as people will rather hold on to the cash rather than spend or deposit it?
So basically the situation won't change as people won't be encouraged to use banks? It will reduce the amount of money being circulated causing inflation.

I don't think this policy is a good idea either, people are to be encouraged to spend money and going through monetary policies is never the best option.
Instead the government should continue to encourage investment and industries by spending money (in the right places!)
Besides how are you to even regulate cash in a largely unbanked economy?

To those who might know; how am I expected to buy goods worth more than a million naira from Cotonou? Take note that k wouldn't be buying from the same person, so the issue of transfering to an account is out of it.
I would be on the look out for a nice vault in the meantime

Hahaha is gonna be FUN....oOps i almost forget I have this 1.5m @home,I'm taking it to the BANk 2mao B4 i start paying some FuNny xtra charges.Ha!

If you have ever lived abroad EU / Americas / Aus this wont be a big deal to you. Nobody do business that way anymore

zebudaya: Anyone who does millions of naira in business daily and does not want to move to cashless would soon be out of business. Get with the times.

Why do you think it's great that the CBN is trying to put some people out of business?

nothing here is unexpected. Cashless society is already predicted in the bible. We re gradually moving towards the biblical prophesy of one world govt. And it can only be achieved with this cashless thing. Pity some nairalanders here are already embracing it. Saying it is good for our economy. Shame.

doofanc:

this is where i believe Cbn has not lived up to expectation.. The enlightenment has not been widespread enough, hence the confusion and much of the resistance.

you can actually buy goods worth 10m if the physical cash is availible and the vendor is willing to accept cash.. What the policy states is that as an individual, you can DEPOSIT or WITHDRAW CASH to maximum of 150k. Anything above this attrats a surcharge. And you will agree its not everyday you buy garri worth 150k. Or is it??

ok brother i gat you.tanx

Well this is funny. To start with internet penetration in naija is less than 30%. so I wonder One would expect that certain things are laid down before such policies are effected. What about cyber theft ? will cbn putting a guaranty on repaying customers that loose money in making e-payments. Still remember a friend whose atm was wiped clean from a balance of 350k and how the bank told her off.

At least here in the UK u have a guaranty in such instances.

Finally of all the things that can boost the economy this one is the most expedient Definitely not!!! Its like fuel subsidy; the idea is good however babies must first sit, stand and then walk.

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Cashless economy is lovely. I'm fully in support of the policy. It makes things easy.
But we will face many challenges like cyber crime,network failure,power failure e.t.c.

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