THE IMPACT OF CBN CASHLESS POLICY ON THE DEVELOPMENT OF THE BANKING SECTOR OF NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
STATEMENT OF THE PROBLEM
As more payment systems have been introduced, pundits have been predicting the emergence of a ‘cash less society’. Today, we still pay with cash and checks, but several other payment instruments, such as credit and debit cards, are widely used. The use of paper money is more declining, but at a rather slow pace. As it were, Nigeria is a country heavily dominated by cash and there are some factors that negatively affect the choice of cash over non-cash instruments, some of these include time spent in counting and verifying cash, susceptibility to loss, time spent in the banking halls, amongst others (Nnanwobu et al, 2011). A cash-based economy is one which is characterized by the psychology to physically hold and touch cash a culture informed by ignorance, illiteracy, and lack of security consciousness and appreciation of the merit of digital payment (Ovia, 2002). Cash, as a payment system, attracts lots of negative consequences such as high cost of handling cash, risks of using cash and keeping them in houses which eventually lead to high rate robbery, financial loss in the case of fire and flooding incidents. High cash usage results in lots of money outside the formal economy, thus limiting the effectiveness of monetary policy in managing inflation and encouraging economic growth. Also high cash usage enables corruption, leakages, money laundering, counterfeiting, mis-management, mutilation and depreciation in value if not invested. Some or most of these factors are one which exists in the Nigerian economy today thus creating gap for this current study. In Nigeria today, infrastructure is a major problem that hinders the money deposit banks from attaining full potential in terms of certain policy implementations and its impact on financial transactions in the banking industry. The infrastructure in Nigeria over the years hasnt been reputable and thus has given way to ineffectiveness to the sincerity in financial transactions in the banks. The level of technology in the nation is rather poor and increasing at a slow pace and as such hasn’t given room for major development and policy implementations that may have risen. The technology available for carrying out banking transactions are not as effective as they ought to be therefore leaving people with no other choice than to keep cash in their houses in order to avoid having to spend lots of time in the banking halls due to low servers, interrupted power supply, bad internet services. Illiteracy and the low level of education of people does nothing else than leave people in the dark and therefore results into the inability of the people to understand when developments are being put into place. Many people do not see the need to keep their money in the banks or invest them due to the lack of understanding they have and also insufficient publicity and awareness measures are what have being in existence which if dealt with would at least reduce the lack of understanding of many and make them see viable reasons why they should keep their money in the banks and invest them other than keep them in their houses as a route to the safety of many lives and better growth of the economy and as such increase the standard of living. This of course, is the motivation behind this study. As a matter of fact, the demand for money is being taken in terms of demand deposits in banks and liquid assets outside the banks that is the average willingness of people to either hold money in cash or keep it as demand deposits in the banks effects the activities of commercial banks in controlling the amount of money in circulation, which in turn determines the hold of the CBN on the economy in terms of monetary policy implementations. The analysis of banking innovations and the response of the public towards them would help determine the hold of the Central Bank of Nigeria (CBN) on the extent to which they have been able to foster financial transactions in money deposit banks across the nation. The introduction of E-commerce has made room for various tools in transacting business, although not all of these tools have been fully utilised. The new policy adopted is such that has been made to affect the whole economy and to put in full use all of these tools which include the monetary and fiscal policies, and in turn will maximise the effort of the e-commerce innovation
1.3 OBJECTIVE OF THE STUDY
The broad objective of this study is to establish the relationship between CBN’s Cashless policy and the development of the financial sector and the Nigerian economy. This broad objective is broken down to the following specific objectives which are;
- To ascertain the relationship between Cashless policy and accessibility to customers’ accounts.
- To investigate the relationship between Cashless policy and queue-ups in banking halls.
- Ascertain the relationship between Cashless policy and the promptness of bank-related transactions.
Related Project Materials
THE ROLE OF COMMUNICATION IN MOTIVATING EMPLOYEES
Abstract: THE ROLE OF COMMUNICATION IN MOTIVATING EMPLOYEES
Objective: This study aims...
FACTORS RESPONSIBLE FOR POOR NURSERY AND PRIMARY EDUCATION IN NIGERIA
Statement of the Problem
According to Egwu (2009), some challenges facing primary education in Nigeria include the huge...
THE EFFECT OF IN-SERVICE TEACHERS ON THE ACADEMIC PERFORMANCES OF BASIC SCIENCE STUDENT
Background to the study
In-service Teachers refers to teacher involves schooling and working at the same time. An in-ser...
APPLICATION OF TOTAL QUALITY MANAGEMENT TECHNIQUES THE MANUFACTURING SECTOR OF NIGERIA ECONOMY
ABSTRACT
The research work looks at the Application Total Quality Management Techniques in the manufact...
INFORMATION TECHNOLOGY AND THE PERFORMANCE OF THE NIGERIAN STOCK EXCHANGE
ABSTRACT
This research work is aimed at studying Information Technology and the Performance of the Nigeria Stock Exc...
THE INFLUENCE OF WORK-LIFE BALANCE POLICIES ON EMPLOYEE RETENTION
Abstract: THE INFLUENCE OF WORK-LIFE BALANCE POLICIES ON EMPLOYEE RETENTION
The study...
THE INFLUENCE OF COMMUNICATION BETWEEN PARENTS AND STUDENTS ON ACADEMIC PERFORMANCE
ABSTRACT
This study investigated The influence of communication between parents and students on academic performance. Three research ques...
AN INVESTIGATION ON THE FACTORS RESPONSIBLE FOR CONFLICT BETWEEN SECRETARIES AND BOSSES IN ANAMBRA STATE OWNED ESTABLISHMENT (AHOCOL COMPANY AWKA)
Background of the study
A secretary is an assistant to an executive who has mastery of office skills as well as the capa...
INFLUENCE OF SOCIAL MEDIA ON ACADEMIC PERFORMANCE OF STUDENTS
Abstract
The study concerned with the effect of Social Media on Academic Performance of Secondary School Students”. This study used...
ASSESSMENT OF PERCEPTION OF USE OF INFORMATION COMMUNICATION TECHNOLOGY AMONG AGRICULTURAL EXTENSION AGENTS IN NIGERIA
ABSTRACT
The research study was carried out to assess the perception of the use of Information Communication Technology (ICT) among agric...
