The Central Bank of Nigeria (CBN) has introduced cash
collection centres called Bank Neutral Cash Hubs (BNCH), to be established by
registered processing companies or deposit money banks (DMBs) based on business
needs.
The apex said this in the guidelines for the registration
and operation of BNCH in Nigeria, released on Monday and signed by
Ahmed.B.Umar, director, currency operations department.
The CBN said BNCHs would provide a platform for customers to
make cash deposits and receive value irrespective of the bank with which their
account is domiciled.
They will be located in areas with high volumes of
commercial activities and cash transactions.
“The key objective of
setting up Bank Neutral Cash Hubs (BNCH) is to reduce the risks and cost borne
by banks, merchants and huge cash handlers in the course of cash management
activities; deepen financial inclusion; leverage on shared services to enhance
cash management efficiency,” the guideline reads.”
“A BNCH may carry out the following: Receipt of Naira
denominated deposits on behalf of financial institutions from individuals and
businesses with high volumes of cash; High volume cash disbursement to members
of the public on behalf of financial institutions; any other activities that
may be permitted by the CBN.”
The BNCHs are, however, barred from carrying out investing
or lending activities.
They are also not allowed to receive, disburse, or engage in
any transaction involving foreign currency or sub-contract another entity to
carry out its operations as well as undertake any other transaction not
prescribed by the guideline.
On deposit and withdrawal limit at cash hub facility, the
apex bank specified a minimum transaction value of N500,000 for individuals and
a minimum transaction value of N1 million for corporate entities.
Only deposit money banks and cash processing companies are
allowed to request approval to operate BNCH registration and pay a
non-refundable application fee of N100,000 and a non-refundable approval fee of
N500,000.
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