An Empirical Investigation into the Effects of Cashless Policy on Deposit Money Banks Liquidity in Nigeria

This study focused on the effects of cashless policy on deposit money banks liquidity (DMBs) in Nigeria. The data for the study were obtained from the Central Bank of Nigeria statistical bulletins and the World Bank. A significant effect of cashless policy (point of sale, Web Pay and Mobile Pay) on deposit money banks liquidity spanning for the period of (2013-2020) in Nigeria was evaluated with the help of regression analysis. The trace test indicate 1 cointegration which meant there was a long term relationship among the research variables. The major objectives of the study were to examine the effects of point of sale (POS) on deposit money banks liquidity, to determine the effects of Mobile Pay on deposit money banks liquidity and to assess the effects of Web Pay on deposit money banks liquidity. The policy implication is that point of sale, web pay and money pay are function of cashless policy in Nigeria. Therefore, the study recommends that the Central Bank of Nigeria (CBN) should intensify its effort for full implementation of cashless policy, CBN should also provide enabling environment for the smooth conduct of cashless policy and facilitate, encourage and enforce on all deposit money banks to comply with the policy. Deposit money banks should intensify their effort toward the improvement of the number of automated teller machine, point of sales terminals and internet facilities. This study therefore placed more emphasis on the level and rate of individual access to cashless financial services with the aims of promoting deposit money banks liquidity in Nigeria.