Banks set for 'cash-lite' transactions with new account number scheme

NIGERIA'S 24 banks have expressed their readiness to commence the cashlesstransactions regime, called 'operations cash-lite', following the full implementation of the Nigerian Uniform Bank Account Number Standard (NUBAN) scheme.Competent sources within the banks said the new number regime has enabled banks deal with challenges associated with the old non-uniform structure of account numbers, thereby empower the financial institutions for seamless migration to the cash-lite transaction era.The new cash-lite policy is billed to commence in Lagos state, the federal capital territory, Abuja, Port Harcourt, Kano and Aba in the first instance, with a go-live date of January 1, 2012 in Lagos.According to the Central Bank of Nigeria CBN the scheme will be extended to other parts of the country at a date to be determined by the Bankers' Committee.'The challenges that were traceable to the non-uniform account structure are being surmounted under the new scheme,such as the challenges posed to the Automated Clearing House (ACH).'Banks are now ready to promote various forms of electronic payments including cashless transactions due to commence in the country next year,'' a top manager with one of the new generation banks said``The initial challenges to the NUBAN were increasing cost of clearing, occasioned by the dragging down of the pace of transactions, but as of today those issues are being resolved.'The new number scheme has addressed various complaints ranging from payments into wrong accounts resulting from wrongly quoted account numbers by customers and the difficulty and lateness experienced in reversing such errors. The other issues resolved is abuse of the clearing system included delays in presenting customer's instructions in the clearing house, delayed application of inward items by some banks, and late return of unapplied inward items.'According to the banker, by removing those challenges, the e-clearing house system of the banks is being made increasingly efficient to take up the mass cashless transactions regime billed to follow the new electronic payment system.The Federal Government had on January 1, 2009, directed its Ministries, Departments and Agencies (MDAs) to replace all forms of cheque payments with electronic payments. Consequently, rather than issue cheques to settle their obligations, all payments by MDAs were made through direct transfers to beneficiaries' accounts.The development triggered unprecedented increase in the volume of automated direct credits at the Bankers Clearing House.``I can tell you that the system has been significantly perfected less than six months of the introduction of the new account number scheme. The clearing house system of the banks is more than ready now to take up more electronic payment transactions at very high efficiency,'' said the banker.
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