THE IMPACT OF CASH-LESS POLICY ON COST OF OPERATIONS OF BANKS
BY
ABAH RUTH
UJ/2010/SS/0272
BEING A RESEACH PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, UNIVERSITY OF JOS FOR THE AWARD OF A BACHELOR OF SCIENCE DEGREE (B.SC.) IN ACCOUNTING.
FEBUARY, 2015
CERTIFICATION
I ABAH RUTH have completed the project for the award of Bachelor of Science (B.Sc) Accounting, in the Department of Accounting, Faculty of Management Sciences, and University of Jos.
I hereby certify that apart from references to other people work which have been duly acknowledged, this project is as a result of my effort and that neither in whole nor in part has been presented for a degree or any certificate in this institution or else where
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RUTH ABAH DATE
APPROVAL PAGE
This project work has been read, examined and approved having met the standard requirement for the Award of a Bachelor of Science (B.Sc.) Degree in Accounting in the Department of Accounting, Faculty of Management Sciences, University of Jos, Plateau State, Nigeria.
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MR EGEGWU UNOGWU EMMANUEL DATE SUPERVISOR
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Prof . EKOJA .B. EKOJA (Ph.D) DATE
HEAD OF DEPARTMENT
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Prof. Ambrose. A. Okwoli ( Ph.D) DATE
Dean, Faculty of Management Sciences
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EXTERNAL EXAMINER DATE
DEDICATION
This research work is dedicated to God Almighty, the Foundation of knowledge
ACKNOWLEDGMENT
All Glory and honour be unto God for His goodness, mercy and grace in my life and for preserving me in this institution even though I did not deserve it.
I jointly appreciate my supervisor MR. EGEGWU UNOGWU EMMANUEL for the guidance through constructive criticisms and advice, most especially not compromising on good work and quality which has made the research work a master piece, to all my lecturers, your effort in my life will not be in vain, God bless you all.
I appreciate the most important people in my life, REV MR AND MRS ANDREW ABAH for their prayers, love, care and support, may God bless you with long life, prosperity and all the good things of life.
Finally, course mates and everyone who has supported me in one way or the other. God bless you!
TABLE OF CONTENTS
Title page - - - - - - - - - - i
Certification - - - - - - - - - - ii
Approval Page - - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - - -v
Table of Content - - - - - - - - - vi
Abstract - - - - - - - - - - ix
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study - - - - - - - -1
1.2 Statement of the Problem - - - - - - - -3
1.3 Objectives of the Study - - - - - - - -4
1.4 Research Question - - - - - - - - -4
1.5 Research Hypothesis - - - - - - - - -4
1.6 Scope of the Study - - - - - - - - -5
1.7 Significance of the Study - - - - - - - -5
1.8 Limitation of the study - - - - - - - -6
1.9 Definitions of terms - - - - - - - - - 6
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction - - - - - - - - - -8
2.2. Conceptual Frame work - - - - - - - -8
2.2.1 Concept of cashless policy - - - - - - - -8
2.2.2 Alternatives channels of payment system - - - - - -12
2.2.3 Objectives of cashless policy - - - - - - - -15
2.2.4 Issues or Instrument of cashless policy - - - - - - -16
2.2.5 Benefits of cashless policy - - - - - - - -17
2.2.6 Policy implications of cashless banking in Nigeria - - - - -20
2.2.7 Challenges of cashless policy in Nigeria - - - - - -22
2.2.8 Possible solutions to the problems and challenges of cashless policy in Nigeria -25
2.29 Expected benefit of prospect of cashless policy - - - - -28
Theoretical view - - - - - - - - -28
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction - - - - - - - - - -35
3.2 Research design - - - - - - - - -36
3.3 Characteristic of the study - - - - - - - - 36
3.4 Population of the study - - - - - - - -36
3.5 Sampling Technique and size - - - - - - -37
3.6 Data collection instrument - - - - - - - - 37
3.7 Procedure of proceeding data - - - - - - - -38
3.8 Method of data analysis - - - - - - - -38
3.8.1 Test of hypothesis - - - - - - - - -39
3.8.2 Decision rule - - - - - - - - - - 39
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction - - - - - - - - - -41
4.2 Data presentation - - - - - - - - -41
4.3 Data analysis - - - - - - - - - -45
4.4 Degree of freedom - - - - - - - - -45
4.5 Decision Rule - - - - - - - - - -46
CHAPTER FIVE: SUMMARY, CONCULSION AND RECOMMENDATION
5.1 Introduction - - - - - - - - - 50
5.2 Summary of Findings - - - - - - - - -50
5.3 Conclusion - - - - - - - - - -50
5.4 Recommendation - - - - - - - - -51
Bibliography - - - - - - - - - -53
Appendix A
Appendix B
Appendix C
ABSTRACT
This research work was set out to examine the impact of cash-less policy on the cost of operations of banks using unity bank plc as a case study. Cashless is used to describe an economy characterized by a few notes and or coins in circulation. It has been acknowledged in literature and in practice as a vital element in reducing and not eliminating the amount of physical cash in circulation to reduce the risk of carrying cash, to improve the effectiveness of monetary policy in managing inflation and driving economic growth through the use of electronic base payment systems such as the mobile banking, Automated Teller Machine (ATM), Point Of Sale (POS) debit and credit card. Information was gathered using questionnaires and personal interviews, a total number of seventy questionnaires were distributed to respondents. Data collected were tabulated and the percentages were analyzed. The Chi-square statistic method of testing hypothesis was used to test the hypothesis, based on the findings, it was revealed that cash-less policy has an impact on the cost of operations of banks. The recommendations suggest that due to the literacy level in Nigeria there should be an awareness through workshops and publicity to enlighten the Nigerian masses on the importance of adopting a cash-less society. This paper suggests directions for further research.
