CBN To Introduce Bank Cash Hubs

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 on Monday, BNCHs will provide a platform for customers to make cash deposits and receive value irrespective of the bank with which their account is domiciled.
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.
“They will be located in areas with high volumes of commercial activities and cash transactions.
“The 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”, the guideline stated.
Activities that are permissible for BNCHs under the guideline include “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,” it stressed.