" ITREALMS: ATMC lauds CBN on third party cash statute

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Wednesday, August 23, 2006

ATMC lauds CBN on third party cash statute

Remmy Nweke

AS the nation’s daily cash consumption approaches N200 million, Automated Teller Machines Consortium (ATMC), has lauded the Central Bank of Nigeria (CBN) for endorsing the third party cash provisioning statute.

Managing Director, ATMC, Nigeria pioneer and leading off-site Independent ATM Deployer (IAD), Mr. Noble Ekajeh, said that the third party statute would facilitate he provision and dispensation of cash by the non-financial institutions in the country.

This, he said, would also avail non-financial institutions to have access to banks’ ATM, fit notes in sufficient quantities in order to support availability and easy dispensation to the end-users.

According to Mr. Ekajeh, this would assist immensely in adapting of ATM culture in the country.

He pointed out that after extensive consultation with electronic commerce and banking institutions experts, CBN’s introduction of this statute came at the right time.

As said by him, it would empower the banks to give out cash to third party organization outside the core financial industry.

The framework, he also said, permits banks to count such cash giving to non-financial institutions as part of its liquid assets.

However, the banks and non-financial institution that requires these services are expected to sort out the commercial arithmetic implications of the regulation, of which CBN has already provided a framework.

Prior to this development, there were no regulations that empowered the banks to give cash to non financial institution, hence third parties or non financial institutions had to loan cash from the banks to meet their cash need.

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