By AMAKA ABAYOMI

The Central Bank of Nigeria (CBN) has said the cash policy will enhance the efficacy of monetary policy as more economic agents will resort to more use of cheques and e-payments while more currency in circulation will be captured within the banking system.

Speaking on ‘Cashless Economy: The Role Of Microfinance Banks’ at a capacity building programme organized by the Lagos State Chapter of the National Association Of Microfinance Banks (NAMB), Mr. David Adelana, Senior Bank Examiner, OFISD, CBN, said CBN’s stabilization measures will become more effective as higher proportions of transactions will be done through cheques and electronic payments (e-payments).

“The policy would enhance the efficacy of monetary policy operations and economic stabilization measures and balance genuine currency transaction demands and speculative market behaviours.

CBN Gov, Sanusi Lamido

“As at March 2011, currency in circulation stood at N1.42 trillion while that outside banks’ vaults stood at N1.025 trillion as at February, 2011. Cashless banking is the route to financial inclusiveness and inclusive development.”

Speaking on the role of MfBs in the cashless economy, Adelana said MfBs who become agents to mobile payment service providers can offer mobile deposit and withdrawal of money, anytime, anywhere nationwide.

“Mobile payment revolu-tion is currently sweeping across the African continent and Nigeria shouldn’t be out of the modern and global trend in enjoying such initiatives by adopting technological practices that make lives easier.

“The mobile payment industry will play a huge role in the development of the Nigerian economy.

“Already, 11 Mobile Payment Service Providers (MPSP) – Pagatech, Fortis Mobile, UBA/Afripay, GTBank, eTranzact, Monetise, Eartholeum, Paycom, FET, Ecobank, and Kudi – have been licensed.

“16 MfB operators applied for MPSP licenses and ran pilot tests for about 6 months. Agents can provide payment services like social pay-outs (airtime top-up, loan repayment, local money transfer, bill payment government collections, etc), funds transfer.”