Finance

CBN to introduce bank cash hubs, releases guideline

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The Central Bank of Nigeria (CBN) has released a draft guideline for the registration and operation of Bank Neutral Cash Hubs (BNCH), which are to serve as central cash deposit points for bank customers across the country.

According to the draft guideline released yesterday on the apex bank’s website, BNCHs will provide a platform for customers make cash deposits and receive value irrespective of the bank with which their account is domiciled.

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The CBN noted that the guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision. This move it said is in line with the Nigerian Cash Management System (NCMS), which seeks to reduce cost and improve operational efficiency in the country’s cash management value chain.

The guidelines explained that BNCHs, which are cash collection centers are to be established by registered processing companies or Deposit Money Banks (DMBs) based on business needs. 

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It states: “The Central bank of Nigeria (CBN), in furtherance of its mandate to promote a sound financial system in Nigeria, in collaboration with Banker’s Committee initiated the Nigerian Cash Management System (NCMS) which seeks to reduce cost and improve operational efficiency in the country’s cash management value chain. 

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

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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. 

Thisday

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