CPN Cashless Transactions Presentation v0 1 - Computer ...

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Nov 30, 2013 (3 years and 4 months ago)

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Remita Presentation


to

2012 IT Professionals’ Assembly

“Cashless Transactions:



Platforms, Challenges & Opportunities”




Demola Igbalajobi

Group Head,
Remita Services

SystemSpecs Nigeria Limited


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Presentation to
2012 IT Professionals’ Assembly




Common payment channels/ platforms


Challenges
to Cashless transactions in
Nigeria


Case Study


Treasury Single Account


Brief Introduction to the Remita Platform


Opportunities
for Cashless transactions in
Nigeria


Summary

Presentation

Outline

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Presentation to
2012 IT Professionals’ Assembly




Internet Based


ePayment portals e.g. Remita


Credit/ Debit Cards for online purchases


Payment accounts e.g. PayPal


Online transfers between bank accounts


Point of Sale (POS)


Credit/ Debit Cards at card terminals


Mobile payments

Some

common

channels/

platforms

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Presentation to
2012 IT Professionals’ Assembly




Fear of loss of power base


control


Resistance to blocking loopholes for ‘sharp’ practices


Infrastructure challenges


Admissibility of electronic payments as court evidence


Lack of understanding of the concept by the public


Inherent distrust of ‘computers’ by users


Lack of innovation on the part of service providers


Delays in settlement of interbank transactions


Absence of a legal framework for ePayment

Challenges

to

Cashless

Transactions

in

Nigeria

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Presentation to
2012 IT Professionals’ Assembly




Probably the biggest obstacle, especially in the public
sector


The question of ‘Who now does what’?


Loss of patronage and importance/ relevance


Feeling of being under scrutiny


Fear

of

loss

of

power

base

-

control

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Presentation to
2012 IT Professionals’ Assembly




Stops indiscriminate diversion of funds


Money can be easily traced to accounts


‘Too fast’ for some banks as it reduces floats


Banks cannot keep money for days as ‘float’


Highlights delays in
settlement of interbank transactions


ePayment removes dependency on any single bank


I should be able to pay/ receive money from any bank


Some banks have come to depend on ‘key’ accounts


Beneficiaries not forced to use a particular bank


Should encourage more competition

Resistance

to

Blocking

loopholes


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Presentation to
2012 IT Professionals’ Assembly




What is required for most electronic payments?


Internet connection; PC; mobile phone


How many people actually take part in ePayment
processing in an organisation and need these tools?


What is the frequency of payment transactions?


Compare the cost to a single budget line


Availability of many low cost options

Infrastructure

Challenges



how

real?

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Presentation to
2012 IT Professionals’ Assembly




Might not be on the statute books. However


Investigative bodies


EFCC, ICPC etc use it to
build their case


Often leads to other physical evidence e.g. property


Depends on the weight of evidence

Admissibility

of

electronic

payments

evidence

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Presentation to
2012 IT Professionals’ Assembly




TSA is a unified structure of government bank accounts
-

a single account or a set of linked accounts for all
government transactions, that gives a consolidated view
of government cash resources; based on the principle of
unity of cash and unity of treasury


Government currently has a fragmented banking
arrangement
-

over 10, 000 bank accounts in
multiple banks.


Over N70 billion government funds was lost in failed
commercial banks (Source: OAGF, March 2012)

Case

Study

-

Treasury

Single

Account

(TSA)


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Presentation to
2012 IT Professionals’ Assembly




Main Objective is to help Government unify banking
arrangements in order to have overall oversight of all
cash flows.


Means of promoting efficiency, transparency and
accountability in Government payments


Achieve End
-
to
-
End
electronic processing of
Government payments in line with the National
Payment System (NPS) Vision 2020 objectives.

Objectives

of

Treasury

Single

Account

(TSA)


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Presentation to
2012 IT Professionals’ Assembly




Government does not always know the balance of funds
held in the commercial banks, across all
MDAs


Government still goes to borrow money when it has
money in commercial banks and other accounts in CBN.


The TSA will ensure that Government has access to funds
when needed and would only borrow if there is no fund in
the consolidated account

Why the Need for TSA?

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Presentation to
2012 IT Professionals’ Assembly




The existing Consolidated Revenue Fund (CRF) is now the
TSA for Federal Government and will continue to be
maintained at CBN


Most MDA funds will be domiciled in CBN,
reducing
CBN’s

huge cost of liquidity management for Open Market
Operations (OMO)


MDAs

will have access to cash as and when they need it


There will be
little idle
cash balances of
MDAs

at both CBN
and
Commercial Banks


How Does TSA Work?

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Presentation to
2012 IT Professionals’ Assembly




MDAs initiate and approve transactions from their offices against
their approved budgets
using
a Financial Management System
(GIFMIS) that integrates with CBN ePayment Platform to automate
and streamline payments across all
MDAs


MDA payment
instructions are sent to CBN to provide the cash for
consummation


CBN has adopted Remita as its ePayment platform for
effecting
payment instructions from
MDAs

to beneficiary accounts in
Commercial Banks, Micro Finance Banks
and Mortgage Banks


The use of paper mandates at CBN for CRF transactions has ceased


OAGF has effected all payments from CRF through Remita


Transactions totaling Over 150 Billion Naira a month is passing
through the CBN Remita platform

TSA Implementation

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Presentation to
2012 IT Professionals’ Assembly



What is Remita?




Remita is
a comprehensive ONE
-
STOP

e
-
Payment, e
-
Collection and Payroll Solution.


Extremely robust and yet so easy to use, Remita
is designed to be used by any public or private
sector organization irrespective of Size, Structure
or Specific requirements.

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Presentation to
2012 IT Professionals’ Assembly




View balance in all your accounts across all banks on just
one screen


Handle e
-
payment of all types
-

salaries, pensions, taxes,
suppliers/contractors, individuals, etc.


Make payments to beneficiaries in any Microfinance,
Mortgage or Commercial Bank


Instantly notify payment beneficiaries by SMS and email


Monitor and report on any activity or payment ever made
and on the platform


Operate all your bank accounts from just one place right
from the comfort of your home, office or anywhere you may
be in the world

With Remita e
-
Payment you can:

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Presentation to
2012 IT Professionals’ Assembly




Handle

all

collection

types
-
fixed

or

variable

amounts

or

regular

or

irregular

intervals


Automatically

debit

accounts

held

in

any

bank

in

Nigeria


Collect

cash

from

customers

through

any

bank

branch


View

consolidated

collection

activities

from

all

banks

on

a

single

screen


Pre
-
notify

customers

3

days

before

actual

debit




With Remita e
-
Collection you can:

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Presentation to
2012 IT Professionals’ Assembly



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With

Remita

Payroll,

within

minutes

You

can
:



Compute all staff allowances, loans, pensions, taxes and
other deductions.


Use Biometrics to identify your staff and pensioners


Pay staff and pensioners with accounts in any
Microfinance, Mortgage and commercial banks


Automatically deliver electronic schedules to PFAs,
PFCs, Cooperatives, Unions and other statutory
agencies


Provide staff with pay slips and tax computation slips


View unlimited Payroll, Pension & Biometrics Reports

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Presentation to
2012 IT Professionals’ Assembly




Millions of ‘unbanked’ waiting to be tapped into


Many organisations, including many public bodies still
untapped


Seamless integration between platforms, products and
solutions



Go International!


Opportunities

for

Cashless

Transactions

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Presentation to
2012 IT Professionals’ Assembly




Is it really possible to have a ‘cashless society’?


Do we really want a cashless society?


Emergency purchases?


There is a comfort in having cash in my pocket


Getting cash discounts


Culture

But


.

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Presentation to
2012 IT Professionals’ Assembly




Cashless transactions is a reality that has come to stay


There are a number of platforms open to users


The challenges are surmountable


technical & human


Opportunities still abound


How far can we take it?

Summary

Presentation to
2012 IT Professionals’ Assembly



Thank You