NeFF welcomes re-introduction of cashless policy

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6 years ago

THE Nigeria Electronic Fraud Forum, (NEFF), has said the re-introduction of cashless policy is a welcome development in the payment system because it will help in reducing risks.

The Chairman NeFF, Mr Sam Okejere explained that the policy will encourage electronic payments, reduce risks in high usage of cash support the Financial System Stability in Nigeria.

Okojere added that it will encourage financial inclusion as no fee is attached to cashless policy or tax on cash-outs.

The Chairman made this known at the second 2019 general meeting of the forum held recently in Lagos.

“The Intention of the reintroduction of the Cashless Policy by CBN is to encourage electronic payments, with the objectives of developing our payments system, as part of the key requirements for achieving the Payments National Vision, whilst reducing the risk and costs associated with already identified high usage of cash.

“The Policy prescribed processing fees on daily cash withdrawals and cash deposits that exceed N500,000 for individuals and N3,000,000 for corporate bodies.

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The processing fees prescribed are three per cent and five per cent on withdrawals by individuals and corporate bodies respectively, While deposits/ lodgments are charged by two per cent and three per cent also for individuals and corporates.

“In addition, the process for merchant’s settlement was reviewed to further deepen financial inclusion, enhance transparency and efficiency of the Nigerian payments system.

“There will be no processing fee either under the cashless policy or tax on cash-outs done in order to encourage financial inclusion in the country” Okojere said.

Meanwhile, the Chairman advocated for the review of existing, enactment of new laws in a bid to mitigate fraud risks in the payment system in the country.

Okojere noted the imperativeness due to the re-introduction of cashless Policy that will increase electronic transactions and electronic fraud.

“It is necessary to review and strengthen the existing rules and enact new regulations to mitigate fraud risks in the Payment system.

“As Evidenced by the NIBSS second quarter fraud report of 2019, attempted fraud volume decreased by 47.28 per cent in Q1 figures, while Web, ATM, and Mobile remain the usual suspects to be used by fraudsters.

“Because of the cashless Policy re-introduction and following the trend of increase in usage of electronic transactions that occurred in 2012 against 2018, which has seen growth, there is a likelihood of continued increase in electronic transactions and corresponding potential upsurge in electronic fraud in spite of collective and concerted efforts to check fraud in the country” The Chairman said.