Cashless Nigeria won’t wipe Naira as CBN answers 50+ questions

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[su_quote]CBN has already issued a circular to break exclusivity of card acceptance. Within Nigeria, all cards will now be accepted at any terminal. There will be no more “only MasterCard or VISA accepted here”; every POS terminal will accept any of the cards issued in Nigeria.[/su_quote]

41. How do you take a POS terminal to areas which have used it before and it has failed?

The Payment Terminal Service Providers (independent companies) were licensed to maintain/support POS.

PSTPs have been mandated to ensure that deployed POS terminals are functional at all times. Appropriate mechanism has also been put in place to remotely detect failures which shall be rectified or replaced within 48 hours.

The PTSPs will ensure the POS is working and conduct the merchant through the process by doing test transactions.

This will be done in order to restore confidence especially in places where unpleasant experiences have occurred.

42. What is CBN doing about regulating commission? Banks still deduct COT in addition to the commission.

CBN is currently reviewing the guide to banking charges, to ensure an open and transparent view of the various banking charges. It is also important to note that some banks apart from already offering ZERO COT accounts are also reducing charges on electronic transactions.

43. Merchants do not get value from POS transactions into their account on T+1, If a VISA or MasterCard issued outside Nigeria is used. Is the T+1 settlement cycle going to apply on Visa and MasterCard?

T+1 only applies to cards issued in Nigeria. For card issued outside Nigeria, the settlement cycle should be about T+3 at most. CBN is reviewing this settlement cycle with the various key stakeholders to see how it can be aligned in line with the local settlement framework.

44. What is NIBSS Instant Payment?

NIBSS Instant Payment (NIP) enables people to transfer funds immediately between two accounts within the same bank or to different banks. This is currently being offered by most Nigerian banks.

45. Cash-In-Transit operations- What will happen to them? Are they going to close shop?

No. They will still be relevant. The cash policy means “less cash” not “no cash”. The amount of cash in the system will just reduce.

46. What is CBN doing to address the issue of only one card e.g. VISA is accepted in a shop while others like MasterCard are not?

CBN has already issued a circular to break exclusivity of card acceptance. Within Nigeria, all cards will now be accepted at any terminal. There will be no more “only MasterCard or VISA accepted here”; every POS terminal will accept any of the cards issued in Nigeria.

47. Will the Cash Policy devalue the Naira in anyway?

No. We are presently spending more money printing and destroying notes. It will bring efficiencies to bear on our payment system in future and will impact positively on the value of pour currency.

48. How do you address the issue where a shop attendant hides the POS so as to get a tip from cash payments?

PTSPs/NIBSS monitor uptime and usage of all the POS, so they can checkmate why transactions are not being done on the POS

It is possible to put incentives for shop attendants by giving them gifts based on POS transaction volumes. E-tips are also possible on POS, which should make attendants positively disposed towards POS.

However, we are advised to insist on paying via an electronic means – perhaps when they see that they might lose the transaction all together they may bring it out.

49. What is being done about the people who are going to be laid off due to the new cash policy?

There will be no layoffs due to the cash policy. Banks will still need to operate cash; but the number of people needed to manage cash will reduce. These people will be trained and redeployed to other departments in the electronic area – for product development, support and other needs. These sentiments were also raised in other government reform programmes like the introduction of GSM, during the Bank consolidation and various government privatisation rounds.

50. If banks get reduction in cost of cash handling as a result of the policy are they going to pass such gains by reducing COT or other charges for their customers?

One of the main objectives of the cash policy is to reduce costs, with the intent of passing on the benefits to the customers – in the form of effective and efficient service at a reduced cost, lower lending rates, and increased financial inclusion, amongst other things.

51. Consider changing cashless to cashless or cash lite.

Noted, we have changed from “Cashless” to “Cash-less”

52. Who qualifies as a MDA?

All accounts of Ministries, Departments and Agencies of The Federal, State and Local Government in Nigeria will be exempt on lodgments for the purpose of revenue collections ONLY.

53. Are towns located on the boundaries of Nigeria covered by the policy?

Every part of Nigeria will have the effect of the Cash Policy

enforced on it.

54. How prepared is CBN to enforce this policy?

CBN is putting plans in place to ensure that the policy is fully adhered to. There is going to be regular monitoring and oversight supervision of banks. Those who are found to be violating the policy will be dealt with accordingly.

Technology Times Staff

News and Reports from Technology Times Newsroom.
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