Effect of cashless monetary policy on Nigerian banking industry: Issues, prospects and challenges

Article Type: Full Length Research Article This study examined the effect of cashless monetary policy on Nigerian banking industry. Out of 5000 Guaranty Trust Bank (GTBank) staff, 370 sample sizes were selected based on Taro Yemane’s formula for sample size. The study was carried out in Ekiti State, Nigeria with 370 questionnaires administered to the bank staff in the state. Of the total questionnaires distributed, 350 questionnaires (representing 95%) were returned. The data collected was analyzed using frequency table and percentages while for non-parametric statistical test, Chisquare was used to test the formulated hypothesis. The results of the study showed that there are significant reasons and benefits inherent in the implementation of cashless policy. It also showed that the policy has positively affected the development of banks; as it facilitates ease of operations and reduces queue and congestion in the banking hall, among others. However, inadequate technological infrastructures, high rate of cyber crime and high rate of illiteracy, among others are hindering the full implementation and benefits of the policy during the period of the study. It was therefore recommended that government should put in place a law preventing cyber crime and intensify public enlightenment campaign about the cashless system. Bank officials should also be properly trained about the operations of the policy in order to be efficient with the services rendered to customers. Provision of adequate technological infrastructures sufficient to cope with their teeming customers should be put in place without which the objectives of the policy would not be fully realized. ©2014 BluePen Journals Ltd. All rights reserved