CBN gives guidelines for operation of Bank Neutral Cash Hubs in Nigeria

The Central Bank of Nigeria has released guidelines for the registration and operation of the Bank Neutral Cash Hubs in in Nigeria

According to CBN, the guideline defines the registration requirements and operational procedures for the Bank Neutral Cash Hub which was conceptualized to offer bank-neutral cash withdrawal and deposit services to high volume/value cash transacting customers in a one-stop facility.

Provision of this service will serve to mitigate both risk and costs associated with currency management service provision.

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; and leverage on shared services to enhance cash management efficiency.

Permissible Activities

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.

Non Permissible Activities

A BNCH shall not:

  • Carry out investing or lending activities.
  • Receive, disburse, or engage in any transaction involving foreign currency.
  • Undertake any other transaction which is not prescribed by this guideline.
  • Sub-contract another entity to carry out its operations
  • Any other activities that may be prohibited by the CBN.

ELIGIBLE PROMOTERS

The following may apply for registration of a BNCH:

  • Deposit Money Banks (DMBs)
  • Cash Processing Companies (CPCs)

Further details about the registration requirement of Bank Neutral Cash Hub can be found on the website of the Central Bank of Nigeria.

Source: CBN gives guidelines for operation of Bank Neutral Cash Hubs in Nigeria – StocksWatch (stocksng.com)

Your Comment:

Related Posts

30

Sep
Business & Economy

Capital Hotels sells 51% of its shares to 22 Hospitality Ltd

Capital Hotels Plc has notified its Shareholders and other Stakeholders that 22 Hospitality Ltd has successfully acquired 1,611,995,510 Ordinary Shares of 50 kobo each representing 51% of the equity share capital of the Company through Private Placement. All the required regulatory approvals have been received for the transaction. In addition, 22 Hospitality Limited also bought 456,641,337, and […]

Business & Economy

Union Bank partners Wacot Rice Limited to empower local farmers

In a bid to aid the financial inclusion drive of farmers in Kebbi State, Union Bank has entered into partnership with Wacot Rice Limited, a rice processing company. According to the bank the partnership is aimed to financially include 6,000 local farmers. This will include the youths and women in Kebbi State.  “The Kebbi Financial Inclusion Drive[…]