CBN sets 2015 deadline for removal of COT

CBN Governor, Mallam Sanusi Lamido Sanusi

As part of efforts to reduce banking transaction costs, the Central Bank of Nigeria (CBN), yesterday, disclosed that commercial banks will no more charge Commission On Transaction (COT) by 2015.
The apex banking regulator also hinted that banks will soon deploy biometric options to deepen the Know Your Customer (KYC) principles and also curb incidence of fraud.

Speaking during a sensitisation workshop for stakeholders on the cashless economy recently extended in six states including Abia, Anambra, Kano, Rivers, Ogun and the Federal Capital Territory (FCT) on July 1, Mr Eme Eleonu who represented the Head, Shared Services Department of CBN, Mr Chudi Omeafu, said that with the introduction of cashless policy in Lagos, cost of distributing cash is decreasing.

He said that beside the reduction in cost, cashless policy will help to modernise payment system; help financial inclusion strategy; allow people to save money and will reduce the rate of insecurity as well as curb corruptions and leakages.

He, however, blamed Nigerian banks for not playing their developmental role, saying that they are supposed to grow the people with their resources in line with what obtains in other economies.

With respect to cases of fraud recorded in Automated Teller Machine (ATM), Omeafu explained that the new ATM cards made up of chip and pin, cannot be cloned, noting that since its introduction, it has reduced fraud by 95 per cent.

According to him, CBN is negotiating with Nigerian Postal Services (NIPOST) to use its network to deepen the financial inclusion strategy.

Meanwhile, CBN Governor, Mallam Sanusi Lamido Sanusi, has said that the bank had taken a giant step to gain the confidence of ATM consumers following the circular enforcing migration from magnetic type of debit card to Chip and Pin type of debit card.

“Statistics show that this effort has reduced fraud incidences by 90 per cent as many customers are now embracing the use of electronic (ATM and POS) channels in their transactions because of near impossible efforts of would-be fraudsters in being able to clone debit cards to perpetrate fraud as it was the case during the pre-mitigation era” Sanusi who was represented by the Branch Controller of FCT of the apex bank, Mr John Mbanefo Chukwudifu, said.

Source: The Sun News