The Central Bank of Nigeria (CBN) is currently working
on the idea of introducing lower denomination of N200 and N100 on the
automated teller machines (ATMs), Daily Independent reports.
Mr Musa Iteopa-Jimoh, Head, Payment System Policy and Oversight Division of Banking and Payments Department of the CBN, said the idea of introducing lower denominations is good for the apex bank than the current situation where higher denominations are available. He opined that it will serve as deterrent for those who want to withdraw huge amounts of money, because it will be difficult to carry huge amounts ATM points.
“We are working towards having the mix of lower and higher denominations and we believe that this will be acceptable by Nigerians and will further enhance the use of ATMs and promote cashless policy further into the rural areas and also drive the policy of financial inclusion”, he added.
However, he pointed out that the reason why banks are not putting lower denominations in the ATM machines is because of the cost of processing lower denominations and that the banks find it easy to put higher denominations there because it will mean more money in the machine and the introduction of lower denominations will mean constant loading of the machines.
It will be recalled that the CBN recently unveiled the first digital N100 paper note, which will be officially issued into circulation on December 19.
Lower Naira denominations
Mr Musa Iteopa-Jimoh, Head, Payment System Policy and Oversight Division of Banking and Payments Department of the CBN, said the idea of introducing lower denominations is good for the apex bank than the current situation where higher denominations are available. He opined that it will serve as deterrent for those who want to withdraw huge amounts of money, because it will be difficult to carry huge amounts ATM points.
“We are working towards having the mix of lower and higher denominations and we believe that this will be acceptable by Nigerians and will further enhance the use of ATMs and promote cashless policy further into the rural areas and also drive the policy of financial inclusion”, he added.
However, he pointed out that the reason why banks are not putting lower denominations in the ATM machines is because of the cost of processing lower denominations and that the banks find it easy to put higher denominations there because it will mean more money in the machine and the introduction of lower denominations will mean constant loading of the machines.
It will be recalled that the CBN recently unveiled the first digital N100 paper note, which will be officially issued into circulation on December 19.
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