CBN issues final guidelines on Bank Neutral Cash Hubs

The Central Bank of Nigeria (CBN), has issued the final draft of guidelines for setting up Bank Neutral Cash Hubs (BNCHs). This is according to a recently released circular by the CBN.

Bank Neutral Cash Hubs (BNCH) seeks to reduce costs and improve operational efficiency in Nigeria’s cash management value chain.

The Nigerian Cash Management System (NCMS) was created by the Central Bank of Nigeria in collaboration with the Banker’s Committee, and it led to the creation of Bank Neutral Cash Hubs (BNCHs) to cut costs and increase operational efficiency in the Nigerian cash management value chain.

READ ALSO:Dapo Abiodun, Delegates, Who is Who across the Niger receives Tinubu in Ogun (INTERESTING VIDEO TO WATCH)

CBN said, “BNCHs are cash collection centers to be established by registered (licensed) processing companies or Deposit Money Banks (DMBs) based on business needs. They will be located in areas with high volumes of commercial activities and cash transactions.

The hubs will provide a platform for customers to make cash deposits and receive value irrespective of the bank with which their account is domiciled.”

The Apex Bank stated that the 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; disbursement of Naira denominated withdrawals on behalf of financial institutions to individuals and businesses with high volumes of cash.; and any other activities that may be permitted by the CBN.”

READ ALSO:He Is the Only Worthy Aspirant Right Now, Jaywon Sparked Mixed Reactions After Endorsing Yemi Osibanjo for president

The guideline however prohibits BNCHs from “investing or lending activities; receive, disbursing or engaging in any transaction involving foreign currency; nor sub-contract another entity to carry out its operations”

However, Only Deposit Money Banks (DMBs) and Cash Processing Companies (CPCs) are eligible to apply for licences for BNCHs.

Dear Distinguished Friend(s),

POLITICAL ACTIVITIES

For your political activities, kindly call or reach our WhatsApp number 09069473894 on how we can give you global awareness and publicity to realise your political dream.

Also send your NAME and LOCATION to the above phone number stating your name and location to add you to our WhatsApp database for all our news updates

We say it as it is with global reach, that is why we are different.

SOJ WORLDWIDE….an ONLINE NEWS with a difference