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Banks must reduce cash handling cost – CeBIH

By BusinessNews Staff on April 24, 2014

The Chairman, Committee of e-Banking Industry Heads, Mr. Chuks Iku, says the cost of handling cash transaction is very huge to banks, insisting that there is need to reduce the amount in coming months.

Iku, who spoke at a CeBIH forum in Lagos, said financial institutions had spent fortunes on cash transactions in the first quarter, adding that the situation could lead to significant reduction in profits.

He said, “Apart from the fact that banks spend much in terms of handling cash, there is so much insecurity and inconveniences attached to it. This is why CBN says we can’t continue this way. Cashless is the way to go.”

The CeBIH chairman assured that the planned nationwide rollout of the cashless policy in July by the Central Bank of Nigeria would help to address the problem.

Also, he said bank customers’ biometric identification scheme inaugurated by the CBN recently would help to make banking easier when operational.

Biometric-enabled automated teller machines and point of sale terminals currently existing in the country, according to him, will become activated as soon as the biometric registration exercise is completed.

Although the registration exercise has suffered some delays, he assured it would commence very soon.

Outlining its benefits further, Iku said, “The biometric registration exercise will help banks in their Know Your Customer requirements; at least no two customers have the same biometrics.

“It is something that the CBN has started and there is a committee handling it. Usage of biometric ATMs will not be necessary if you don’t register customers first.”

He explained, “Most ATMs have biometric features. Some PoS terminals also have biometric features. How to activate the biometric features is the main issue. The starting point is to register the customers first. If you don’t have the registration done or their biometric, it will not be possible to use it. This is why the CBN and the Bankers’ Committee have introduced this.”

The CeBIH chairman expressed confidence that banks would meet up with the June deadline the CBN has set for banks to install anti-skimming device on their ATMs.

He said, “I can confidently tell you that a lot of banks have complied by installing the anti-skimming device on their ATMs. The deadline is June, but there is no bank that will wait till June to implement. As we speak today, presentation is going on.

“On role in CeBIH is to talk to our colleagues in each of the banks to ensure they comply before June this year. As we speak, a lot of banks have actually engages consultants to actually implement the anti-skimming device.”

[Punch]

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