Our Reporter
A financial expert, Mr Rowland Anitche, says the new policy guiding interbank ATM withdrawals is a positive response from the Central Bank of Nigeria, (CBN), which would assist the banks to cushion the high cost of holding cash and maintaining ATMs onsite and offsite.
Speaking with Core Truth (CT) online, Mr Anitche explained that the policy favours banks, whose ATMs have adequate cash and customers of other banks use their debit cards to withdraw cash, because of the N100 charge that is applied.
“Most likely, this charge will be shared amongst the two banks with the Bank whose ATM was used in getting more of the fee,” he pointed out.
Anitche, Chief Executive Director, Rugon Capitl Limited, also described the policy as a needed boost to digitization of the payment system.
“The digital payment system has come to stay forever and this policy seeks to de-emphasis the use of large volumes of cash withdrawal over the counter as the nation heads towards a cashless society.
“The POS is only an alternative to bring convenience rather than incurring transport cost to banks for withdrawals.
“Payment transfers from ATMs, E-banking and mobile platforms are still on the rise a pointer to mass adoption, the only drawback are the rural communities which POS providers have filled the gap but still comes at a cost,” he added.
Describing printing of cash as a huge financial burden on the CBN, Anitche said, “The cost include: transporting the cash through various means to CBN branches across the country, provision of security during delivery of cash to banks, retrieving of bad currencies as well as recycling or destroying them.
“Such cost, if properly reduced, will be diverted towards strengthening the financial system through an efficient digital payment system.”
He also explained that financial transactions through cash were anonymous in nature, while it also promotes underground activities that cannot be captured as an economic activity for proper central planning.
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