Minimum transactions: CBN introduces cash collection centres for withdrawals, deposits

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. CONTINUE READING…

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