In a bid to ease huge cash management and deepen financial inclusion, the Central bank of Nigeria (CBN) has unveiled guidelines for the operation of the Bank Neutral Cash Hubs (BNCH).
This is contained in a noticed posted on its website, that the release of the guidelines is in furtherance of its mandate to promote a sound financial system in Nigeria.
The notice reads: “The CBN, in collaboration with the Banker’s Committee, initiated the Nigerian Cash Management System which seeks to reduce cost and improve operational efficiency in the country’s cash management value chain.
“One initiative towards the stated goal is the introduction of BNCH.
“BNCHs are cash collection centers to be established by registered 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 apex bank said.
“This guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.
“The key objective is to reduce the risks and cost borne by banks, merchants and huge cash handlers in the course of cash management activities.
“It will also deepen financial inclusion and leverage on shared services to enhance cash management efficiency,” it said.
The CBN said, according to the guidelines, a BNCH is permitted to carry out activities like receipt of Naira denominated deposits on behalf of financial institutions from individuals and businesses with high volumes of cash.
“It can also carry out high volume cash disbursement to members of the public on behalf of financial institutions, and any other activities that may be permitted by the CBN.
“But it is not permitted to carry out investing or lending activities, or receive, disburse, or engage in any transaction involving foreign currency,” it said.
It called on eligible promoters like DMBs and Cash Processing Companies (CPCs) to apply for registration of BNCH.
“Prospective promoters of BNCH shall apply in writing to the Director, Currency Operations Department,” it said.
