ProjectClue.com WhatsApp or Call Us

projectclue whatsapp icon07030248044

Project Topic:

A STUDY ON THE ACCEPTANCE AND ADOPTION OF THE CBN CASHLESS POLICY

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 57 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   1,982 people found this useful

Project Department:

BANKING FINANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND TO THE STUDY

One of the prerequisites for the development of national economy according to Ajayi et al, 2006 is by encouraging a payment system that is secured, convenient, and affordable. The world today is moving away from paper payment system to electronic means, especially payment cards (Humphrey, 2004). In most countries, for instance, it is possible to pay for a snack through vending machine by simply dialing a number on one’s phone bill. In Nigeria, like most developing countries, cash is the main mode of payment and a large percentage of the populations are unbanked (Ajayi et al., 2006) thus making the Nigerian economy to be heavily cash-based.

Recently, the Central Bank of Nigeria (CBN, 2011) revealed that the direct cost of cash management is estimated to reach a staggering sum of one hundred and ninety two billion naira (N192bn) in 2012. Other challenges resulting from high-cash usage among others include: armed robberies and cash-related crime, revenue leakage arising from too much of cash handling, inefficient treasury management due to nature of cash processing, high subsidy, high inflation etc (Akpan, 2009). Against these backdrops, the CBN introduced the cashless policy in April 2011 with the objective of promoting the use of electronic payment channels instead of cash. This no doubt led the CBN into conducting a pilot scheme of the cashless policy in Lagos in January 1st 2012. So far, implementation of the policy in Lagos has not gained expected reaction. Hence a rollout across the country has been substituted with phase implementation in Port Harcourt, Kano, Abia and the Federal Capital Territory (CBN, 2012).

A cashless economy is one where purchases and transactions are done mainly by electronic means and seldom by cash. The policy, introduced by the CBN in April 2011, states that individual and corporate customers are restricted to a daily cash withdrawal and lodgment of N500000 and N3m respectively. By implication, individuals, who make cash withdrawals above the limit will be charged N100 on every N1000 while a corporate organization that exceeds the limit will be charged N200 on every N1000 (Ezio, 2008).

According to the CBN and the Bankers Committee, the economy will be better off with the policy. For instance, it will reduce the dominance of cash in the system, thereby reducing cases of armed robbery and cash related crimes. It will moderate the cost of cash management; encourage the use of electronic payment channels and reduce lending rates to further make credit accessible to big and small business. The committee’s findings showed that running a cashless economy could save the CBN about N192bn, which is the projected direct cost of managing cash for 2012. While Nigerians could not deny the need to prevent too much cash in circulation among other benefits of the scheme; many still believe that the cash limit is too low and query how the CBN arrived at the benchmark. Some also express the need for a gradual transition to the new policy order; while others think that Nigeria is not even ripe for it. As laudable as the cashless idea is, an assessment of the usual inconsistencies in the operation of the Automated Teller Machine (ATM) leaves many stakeholders wondering if the same system could produce a better result. Realizing this potential threat, the CBN recently directed banks and independent service providers to deploy more ATMs and ensure their efficiency to ensure a smooth implementation of the policy. The most outstanding cashless banking channels world over according to Siyanbola (2013) are Mobile banking; Internet banking; Telephone banking; Electronic card implants; POS terminals, and ATMs.

The word mobile is related to mobile business which connotes the possibilities of having access to business activities anywhere and anytime in the world and which is managed by computer mediated network. The facility makes service availability location possible. Mobile

Banking involves the use of mobile phone in carrying out financial transactions. This is more or less fund transfer process between customers with immediate availability of funds for the beneficiary. According to Siyanbola (2013), it uses card infrastructure for movement of payment instructions as well as secured SMS messaging for confirmation of receipts to the beneficiary. It is very popular and exciting to the customers given the low infrastructure requirements and a rapidly increasing mobile phone penetration in the country. In the banking industry, services that are finance-related which involves mobile telecommunication technologies are known as Mobile financial services. These services are therefore categorized into mobile payment and mobile banking (Alex, 2010). Services covered by this product include account enquiry; funds transfer; recharge phones; changing password and bill payments (Tiwari & Buse, 2007).

Internet banking involves conducting banking transactions on the internet (www) using electronic tools such as the computer without a customer having to visit the banking hall. Internet or electronic banking is also a system by which transactions are settled electronically with the use of electronic gadgets such as ATMs, POS terminals, GSM phones, V-cards etc, handled by e-holders, bank customers and other stakeholders (Edet, 2008). These innovations in the banking system no doubt have greatly facilitated e-commerce mostly in effecting payments. Internet banking, like mobile banking, also uses the electronic card infrastructure for executing payment instructions and final settlement of goods and services over the internet between the merchants and the customers. Commonly used internet banking transactions in Nigeria are settlement of commercial bills and purchase of air tickets through the websites of the merchants or service providers.

Electronic card on the other hand is a physical plastic card that uniquely identifies the holder used in transacting business on the internet, automated teller machine (ATM) and point of sales (POS) terminals (Carow and Staten, 2000). This includes debit and credit cards with debit cards linked to local bank accounts and offer immediate confirmation of payment while credit card can be used for assessing local and international networks. As credit cards are widely accepted in most countries, the underlying infrastructures and operational rules are often provided by global trust scheme (such as visa and master card) in addition to local lines.

Debit cards are the dominant cards in Nigeria, otherwise known as ATM cards and their usage is wider than POS transactions given the current limited deployment of POS terminals.

Point of Sale (POS) or Point of Purchase (POP) terminals is the location where a transaction occurs. A POS or POP is generally referred to the hardware and software used to check out, the equivalent of an electronic cash register. A POS manages the selling process by a salesperson as an accessible interface while allowing the creation and printing of receipts.

Automated Teller Machine is a computerized device that provides the customers of a financial institution with access to financial transactions in a public place without a need for assistance from bank teller or any bank official (Migdadi, 2008). It is the commonest form of electronic banking which has gained popularity among Nigerians including the illiterate bank customers.

Notwithstanding the benefits posited by cashless economy from the foregoing, these alternative payment channels are still faced with enormous challenges. According to Wales (2013), challenge is a general term referring to things that are imbued with difficulty and victory. Thus, there are many difficulties associated with the actualization of the cashless economic policy among the Nigerian populace especially the illiterate family members; those living mostly in rural areas and the unemployed as well.

The Port Harcourt community is among the elite class of the Nigerian society who by virtue of their positions are bound to embrace the cashless policy, giving the presence of commercial banks available at their disposal. To this effect, the study would determine the acceptability and adoption of the cashless policy in Port Harcourt.

1.2. STATEMENT OF THE PROBLEM

According to the Global FINDEX Survey in 2011, around one-third of Brazilians and South Africans with debit cards use e-payments, compared with one in ten Nigerians: the 2% of Nigerian adults who currently make e-payments represent a small fraction of the 19% holding debit cards (which is used as a proxy for a type of account more likely to provide e-payment functionality). Similarly, data from EFInA’s Access to Financial Services in Nigeria 2012 survey (A2F, 2012) highlight Nigerians’ limited acceptance and adoption of electronic payments and services to date, with 0.7% of banked adults using POS terminals, 0.8% of banked adults using the internet, and less than 2.5% using mobile phones for banking transactions. The policy has since been affected by many factors namely ineffective sensitization campaign exercise; inadequate protection of the interest of merchants and people in the informal sector; non availability of Point-of-Sale (POS) terminals as well as other technological challenges. Thus, these challenges have seriously affected the implementation of the policy. It is therefore the belief that the move is too idealistic in a country like Nigeria where a larger percentage of their population has low level of functional literacy skills and resides in rural areas where compelling them to travel long distances in order to use these services. It therefore becomes pertinent to examine the level of acceptability and adoption of the cashless economic policy in Nigeria.

1.3. OBJECTIVES OF THE STUDY

The broad object of the study is to determine the level of acceptability and adoption of the CBNs cashless policy in Port Harcourt metropolis. The specific objectives are as follow.

  • To determine the level of acceptability and adoption of the CBNs cashless policy in Port Harcourt.
  • To find out the advantages, benefits and implications of accepting and adoption of the CBN’s cashless policy in Port Harcourt
  • To Determine the challenges facing the use of internet and mobile banking services/POS and the disadvantages of CBN’s cashless policy in Port Harcourt
  • To find out the factors that can improve the level of acceptability and adoption of the CBN’s cashless policy in Port Harcourt.

1.4. RESEARCH QUESTION

What is the level of acceptability and adoption of the CBNs cashless policy in Port Harcourt?

  • What are the advantages, benefits and implications of accepting and adoption of CBN’s cashless policy in Port Harcourt?
  • What are the challenges facing the use of internet and mobile banking services/POS and the disadvantages of CBN’s cashless policy in Port Harcourt?
  • What are the factors that can improve the level of acceptability and adoption of the CBN’s cashless policy in Port Harcourt?

1.5. HYPOTHESIS

The following hypotheses were formulated to guide the study and were tested at

Ho: The people of Port Harcourt has not significantly accepted and adopted the         CBNs cashless policy

HA: The people of Port Harcourt has significantly accepted and adopted the      CBNs cashless policy

1.6. SIGNIFICANCE OF THE STUDY

This study is targeted at determining the level of acceptability and adoption of the CBNs cashless policy in Port Harcourt considering the factors and challenges facing the use and the acceptability and adoption of the policy, therefore this study will educate the general public on the need for the acceptance and adoption of the cashless policy educating the general public of the advantages of the policy. Furthermore, this study will also educate stakeholders in the financial sector on ways to solve the problems limiting the acceptance and adoption of the CBNs cashless policy.

Lastly, the outcome of this study will increase the volume of the literature in the area of acceptability and adoption of the CBNs cashless policy.

1.7. SCOPE AND LIMITATION OF THE STUDY

In ascertaining the level of acceptability and adoption of the CBNs cashless policy, this study will cover all the Local Government area in the city of Port Harcourt.

1.8. LIMITATIONS OF STUDY

Limitations experienced in the course of this study are basically centered on problems relating to:

Difficulty in generating reasonable, adequate and reliable information from respondents- Respondents tend to provide information which they feel the researcher would be pleased to get, which may not be the right information.

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9. DEFINITION OF TERMS

Payment- the action or process of paying someone or something or of being paid

Economy– the state of a country or region in terms of the production and consumption of goods and services and the supply of money.

Transactions– an instance of buying or selling something.

Cash– money in coins or notes, as distinct from cheques, money orders, or credit.

Internet– a global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols.

Get the complete project »


Instant Share On Social Media:


Can't find what you are looking for?
Call (+234) 07030248044.

OTHER SIMILAR BANKING FINANCE PROJECTS AND MATERIALS

A CRITICAL ANALYSIS OF CAUSES AND PROBLEM OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR (A CASE STUDY OF AFEX BANK PLC.)

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract

CHAPTER ONE INTRODUCTION The importance of capital as a necessity though not sufficient condition for economic growth is recognized in development economy where it is believed that the position of ...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL REPORT IN ASSESSING BANK PERFORMANCE. (A CASE STUDY UNION BANK OF NIGERIA PLC)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5610 engagements

CHAPTER ONE INTRUDUCTION BACKGROUND OF STUDY A farmer, who plants corps, expects result, similarly to student who sits for examination expects results. The same 5 also true of an investor. For the ...Continue reading »

A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis  ::   18713 engagements

ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »

A CRITICAL APPRAISAL OF CURRENT ASSETS MANAGEMENT IN PUBLIC LIMITED LIABILITY COMPANIES

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   3640 engagements

ABSTRACT This project examined the management of current assets in public Limited Liability Company. It is obvious that no company can perform well without good current asset management. This cares f...Continue reading »

A CRITICAL APPRAISAL OF CURRENT ASSETS MANAGEMENT IN PUBLIC LIMITED LIABILITY COMPANIES

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 55 ::   Attributes: Questionnaire, Data Analysis, Abstract

CHAPTER ONE 1.0 INTRUDUCTION: Current assets as one of the management tolls of business organization are very important in the proper function of business and achievement of organizational goal. Cur...Continue reading »

A CRITICAL ASSESSMENT OF THE SURVIVAL STRATEGIES OF DEPOSIT MONEY BANKS IN A DEPRESSED ECONOMY

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1808 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Nigerian economy is faced with national and global economic challenges and as such, the financial institutions, especially the banking sector ha...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Abubakar Sani from Nigerian Investment Promotion Commission said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 2. Ogunniran Olawale from Ekiti state university said "Projectclue is really safe and reliable Quick access to project works Nice customer service Fast delivery of request Recommend this toy fellow students ".
    Rating: Excellent
  • 3. Fahat Nasir from isa kaita college of education dutsinma said "Fish farming a solution unemployment ".
    Rating: Very Good
  • 4. Ajimbi Oluwarotimi from Theology school osun said "Good ".
    Rating: Very Good
  • 5. Clement Abdullahi Ogiji from National Open University of Nigeria said "I am a living witness and have recommended project clue to a lot of students, so far none have been disappointed, very reliable and, trustworthy and dependable".
    Rating: Excellent
  • 6. Jhuee from Sultan national high school said "Good quality. I recommend project clue for any project research work.".
    Rating: Excellent