INTRODUCTION

1.1 Background to The Study

The Cashless application policy implies an economy in which transactions can be conducted without the use of physical cash in the exchange, purchase and sale of goods and services through the use of debit card, credit card to facilitate such transactions.  .This is a policy initiative of the central bank of Nigeria aimed to further improve the financial sector of the economy. However it is expected that the implementation shall receive commendation from the end users (Ejiro, 2012). The CBN regulations regarding the  cashless policy provides  a daily cumulative limit of N150, 000 and N1, 000,000 on free cash withdrawals and lodgments by  corporate and individual customers respectively in the Lagos State  beginning from  March 30, 2012. Consequently the regulations stipulate a service charge for any cash transaction above the CBN provides cashless policy guideline involving Individuals and corporate organizations. Also cheques drafted for a 3rd party above N150, 000 shall be received through the clearing house and not be eligible for encashment over the counter with effect from January 1, 2012. This therefore required that All Nigerian banks   cease cash in transit lodgment services rendered to merchant-customers from January 1, 2012. The cashless application policy also provided for easy transfer of funds through the use of information technology thereby reducing waste of time in the bank. The implementation of cashless policy began in Lagos State, Nigeria. This is because of the high volume of business and financial transaction in Lagos state according to Central Bank of Nigeria (CBN, 2011) . It is believed that its full implementation shall cut down the cost of maintaining cash based economy. The research seek to proffer an investigation on improving security in cashless application.

1.2 Statement of the Problem

The CBN cash policy implementation implies a reduction in physical cash transaction and more dependence on technologies provided for the purpose. But the   nature of the Nigerian economy poses a great challenge as to the security of financial transaction conducted over the ATM and the use of other technologies and facility provided for the cashless policy implementations. Many cases of fund loss have been recorded concerning ATM transactions and the use of other technologies. Also, the poor level of illiteracy,communication network and internet facility poses further challenge to the effective and safe implementation of the cashless policy. The use of credit cards and debit cards often do not meet customer cash needs and the security situation around the facility had in recent times brought under security challenge. 

Problem confronting the research is to proffer an appraisal on improving security in cashless application

1.3 Objectives of the Study

To proffer an appraisal on improving security in cashless application 

1.4 Research Questions

What is cashless application?

What is the requirement for improving security in cashless application?