Information technology is beyond computers; it encompasses the data that a business creates and uses as well as a wide spectrum of increasing convergent and linked technologies that process such data. Information technology thus relates to the application of technical processes in the communication of data. It is worthy of note that information technology goes a long way in helping to reduce transaction costs for banks, which translates to lower prices for services to customers. The adoption of information technology by banks has given birth to bankers’ automated clearing system, automated payment systems and automated delivery channels, amongst others, which has now culminated into the implementation of cashless policy in Nigeria. The paper discusses the merits and demerits of the policy; and proffers recommendations.