The Central Bank of Nigeria (CBN) has been in the news a lot lately. If it is not for the new monetary policy, it is about one other policy. Part of the policies Nigeria’s foremost bank rolled out is the new single debit card. In this post, we’ll be looking at the features of the new single debit card (ATM) of CBN.
What are the features of this ATM card? What does it entail? How will it be used? When is it coming into effect? We’ll be looking at all of these, and more, in this post. You have to read the details of this post carefully. You should get to note the characteristics and features.
What is this New Single Debit Card (ATM) of CBN?
The new single debit card (ATM) of CBN simply means that no Nigerian with an operational bank account would have more than one debit (ATM) card. Most Nigerians have more than one bank account, and these bank accounts have their separate cards.
This means that when this card becomes operational, all the bank accounts of a Nigerian will be reconciled, and with the person’s BVN, the person will have a single card.
Thus, a Nigerian shall no longer have different ATM cards. The bank accounts will be unified. If you lose this card, you can no longer withdraw money via cards or purchase things with cards or even pay bills.
There are many theories as to why this policy was introduced. Now, in the next section of the post, we’ll be looking why this policy was introduced.
Why was the New Single Debit Card (ATM) of CBN Introduced?
The first reason or explanation as to why it was introduced was due to the CBN’s monetary policy. The CBN’S monetary policy that came into effect in January, 2023, stated that Nigerian personal accounts won’t be withdrawing more than 500,000 naira daily. On the other hand, corporate accounts won’t be withdrawing more than 5 million naira daily.
The CBN had enacted this policy due to the excess money in circulation and out of banks. It had also been enacted to reduce the level of inflation in the country.
In addition to these, the card was introduced to reduce the level of fraud and corruption in the country. It will make it easier for government to track the cash inflow and outflow of all Nigerians. Thus, making the withdrawal limit cash policy effective, too.
The next section of this post is x-raying the features of this card.
The Features of the New Single Debit Card (ATM) of CBN
For this section, you should know that it is not only the features that are explored, the steps and processes with which you can use this debit card is also explored.
1. When a customer approaches an ATM machine all the machine will require from the customer is to insert this single debit card.
2. Upon insertion of the card in the Machine, before adjustment of the software, the machine will list all banks approved by CBN. Furthermore, by further criticism and adjustment and configuration using BVN, the machine will list the bank that is linked to a single BVN of a single and particular customer who is transacting. In simple terms, the ATM will list the banks you have accounts with through your BVN.
3. The customer chooses the preferred bank to transact. However , you should remember that there would be several bank options the customer can chose from.
4. When this is done satisfactorily the system brings to the customer the template for transaction type, either, paying bills, drawing, transfer, etc.
5. Next is that the customer is required to state amount to debit or to transfer to a given destination. If its transfer, destination details will be required if its instant payment, the system pays and gives evidence of payment by way or print out.
6. After a single transaction, you will be required whether to continue with another transaction, there are Yes and No buttons.
7. The advantage of this is that the cost of making multiple cards for a single customer by various banks is eliminated.
8. Synchronized transaction reduces fraud by hacking agents.
9. Harmonized cards gives room for proper monitoring of fund movements.
10. This transaction will make the fund to kidnapers and bandits traceable if actually the authorities have not been sleeping over it without doing anything.
11. The new system will need well informed ICT people because the loop requires up to speed IT people and higher profiled systems.
12. Internal fraud will be traceable because down turn on a single account will be much easier for fraud than multiple accounts bearing in mind the successes and failures of Universal Banking.
13. Every system that has a plus has a corresponding minus bringing us to advantages and disadvantages of the new Single Card System.
Even though, there are lots of perceived advantages for this policy, there are also lots of negatives for this policy.
What are the Negative or Bad Sides of Single Debit (ATM) Card of CBN?
1. On the negative side, the cost of software & change of hardware with a higher memory and storage capacity is not cheap, however it is expected that CBN will assist banks for upgrading both hard & Software prowess for effective functioning of harmonised Automated Teller Debit Machine Cards.
2. There will be need for further training of staff to cope.
3. Lazy and untrainable Staff will find themselves closer to the gate of exit, and Labour Union will misunderstand the situation and revolt.
This post has, in a very good way, looked at the subject matter concerned. Thus, it is a good way exploration of the features of the New Single Debit Card (ATM) of CBN. It is a good study or exploration.
SOURCE: Enugu Journalist