1.1 BACKGROUND OF THE STUDY
Global trend of unpredictable technological advancement evolution of ideas in the corporate world and continuous progressive changes in socio-economic transactions within the modern society have imperatively imprinted upon the human minds the search for better ways of addressing economic activities and interaction in the modern world. In this view, the Central Bank of Nigeria (CBN) has engaged in new series of reformations as there is evolution of technology in global trend in recent times. Although some of these measures took time to implement but it came out with success.
The payment system plays a very crucial role in any economy. The banking system is the channel through which financial resources flow from one segment of the economy to another. It therefore represents the major foundation of the modern market economy (CBN, 2011). In today’s world, many people across the globe make payments electronically rather than in person or cash. It can then be said that the recent financial system is the product of centuries of innovation. This financial system started as a barter economy and has moved through various incarnations in response to limitations inherent in the evolving systems. Ajayi, S.I and Ojo, O.O. (2006). For instance the barter system had the problem of divisibility and double coincidence of wants and hence phased out with the use of physical cash (money), whereas the use of money (i.e physical cash) is gradually been replaced with the cashless method of transaction.
The importance of managing the economy efficiently cannot be over emphasized. The monetary authorities, by controlling the supply of money, maintain price stability and influence economic activities especially when combined with appropriate fiscal measures.