Maximum Daily Cash Transaction Enforcement in Nigeria Cash-lite Economy
Document Type Article
Please find the attached paper for your peruse
A Cash-lite economy is an economy whereby there is reduction in the high usage/volume of cash in circulation. It encourages the use of electronic payment channels and reduces the cost of cash production and transportation. This paper focuses on preventing daily over limit cash transaction as a security measure, to enforce the Nigeria apex bank cash-lite policy, on daily raw cash transaction limits and the associated penalties. The paper presents a remedy to stabilise and achieve the purpose of the new cash-lite policy in Nigeria economy. At the point of every transaction it check for the existence of any previous transaction on that particular day, especially transaction(s) of the same type (that is withdrawal or deposit) and the similarity between the account owner’s particulars using Bayes’ theorem, to calculate the P(X). If the P(X) >= 0.5 that is calculated result, it will conclude that those earlier transactions having the P(X)>=0.5 has been carried out by the same person who is about to transact at the transaction point. Then, it later calculates the total amount of transact(s) for that day. If the calculated total transaction is beyond the set daily limit, it will subtract the daily limit from the total transaction and calculates the excess charges on individual account using 2% for cash deposits, 3% for cash withdrawal and on corporate account using 3% for cash deposits and 5% for cash withdrawal.