Wednesday, May 25, 2022



HomeBusinessCBN releases guidelines for BNCH operations

CBN releases guidelines for BNCH operations

In a bid to ease huge cash management and deepen financial inclusion, the Central Bank of Nigeria (CBN) has released guidelines for the operation of the Bank Neutral Cash Hubs (BNCH).

According to a statement on its website, the CBN said that the release of the guidelines is in furtherance of its mandate to promote a sound financial system in Nigeria.

It said it is part of its collaborative efforts with the Banker’s Committee to reduce cost and improve operational efficiency in the country’s cash management.

“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.

ALSO READ:  CBN Adopts NAFEX Rate, Naira To Now Trade At N410/$1

Read also: AFCON 2021: CBN Gov assures of more support for Super Eagles

Kogi N20 billion bailout scandal: Workers fate nailed as funds return to CBN

“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.

It added that the hubs would provide platforms for customers to make cash deposits and receive value irrespective of the bank with which their accounts are domiciled.

“This guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.

ALSO READ:  CBN holds crucial meeting ahead of e-Naira launch Monday

“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.

ALSO READ:  FG: Dangote, BUA, Lafarge won’t pay tax for building roads

“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. 



DISCLAIMER
For publication of your news content, articles, videos or any other news worthy materials, please send a mail to thefreshrepo [email protected]

For Advert and other info, you can send a WhatsApp Message to +2348084076066


How To Make Money On Freshreporters=>https://freshreporters.com/make-money/


Join thousands of readers to receive daily Latest News:
  • Click to see more posts about 👉
  • CBN

4 COMMENTS

Most Viewed news

close button