The Central Bank of Nigeria (CBN) recently announced its new cashless policy, which will become effective in all states within Nigeria. Following this was the redesigning of the N200, N500, and N1,000 naira notes and subsequent withdrawal limits for cash.
The Cashless Policy is a set of regulations aimed at reducing the use of physical cash for transactions and encouraging the usage of digital payment systems so that every Nigerian will have access to financial services.
The policy, according to them, was designed to reduce the amount of physical cash used in the country, thereby making Nigeria 100% cashless.
The CBN restricted cash withdrawals over the counter to N100,000 per week for individuals and N500,000 for corporate entities. Withdrawals above these thresholds will attract processing fees of between 5%-10%.
The CBN Governor stated that data showed that a large volume of banknotes was being hoarded by the public, which had resulted in a shortage of clean and fit banknotes, thereby increasing the rate of counterfeiting in the country. The Nigerian government believes that the cashless policy will help reduce inflation, fraud rate, and corruption prevalent in the country. It will also help make transactions more secure, as digital transactions are harder to manipulate when compared to physical money.
No doubt, the initiative will reduce corruption and manage the money supply. However, what will be its direct effect on individuals who need to make multiple transactions daily?
The effect on Individuals and Businesses
This new policy has the potential to affect many aspects of life for Nigerians, from the way we do business to our daily shopping. Individuals without a bank account may have difficulties making large transactions, as they will be limited to cash transactions.
Additionally, individuals will be required to use electronic payment methods for transactions above NGN 20,000, and businesses must ensure that their customers can make payments electronically.
People from rural areas may not have access to digital forms of payment, and this policy might negatively impact them.
How to stay ahead of the CBN’s Cashless Policy
The good news is that with the Cashmatrix App, you make as many purchases as you need and pay for goods and services. There is no limit to the transactions you can make on the app.
Don’t have a Bank Account? You can open a bank account with your mobile phone in minutes without stepping into the bank or doing any unnecessary paperwork.
The best part is transfers are free when sending money to another Cashmatrix account.
Do you need to pay your bills? You can instantly pay your electricity, cable, and data bills and top-up airtime on the Cashmatrix App.
So, encourage your friends, family members, customers, and retailers to open a Cashmatrix Account today and enjoy the convenience of digital banking.
The Cashmatrix App makes it easier to comply with the CBN’s cashless policy, allowing users to make unlimited payments without carrying cash.