Economy

By Kennedy Nnamani

THE Central Bank of Nigeria, CBN, has released guidelines for registration and operation of Bank Neutral Cash Hubs, BNCH, in Nigeria.

The guidelines aim to provide minimum standards and requirements for BNCH registration and operations for effective supervision.

The CBN says that it is collaborating with Banker’s Committee to execute its mandate of promoting a sound financial system in Nigeria.

The BNCHs, whose objective is to reduce the risks and cost borne by financial institutions and huge cash handlers, will be established by registered and licensed processing companies or Deposit Money Banks, DMBs, based on business needs.

According to the apex bank, the hubs will be located in areas with high volumes of commercial activities and cash transactions and will provide a platform for customers to make cash deposits and receive value irrespective of the bank with which their account is domiciled.

For registration, according to the CBN, the promoter of a BNCH shall submit, at every new BNCH site to be set up, a formal application to the Director, Currency Operations Department, COD, requesting to be granted approval to operate a BNCH.

In addition, the financial requirements for an approval to operate as BNCH, which may be amended by the CBN as it deems necessary, are a non-refundable application fee of one hundred thousand naira (N100,000) and a non-refundable approval fee of five hundred thousand naira (N500,000)

According to the CBN, the BNCH shall operate to ensure that only registered Cash-In-Transit, CIT, companies are engaged for cash movements to and from the BNCH site, to deploy and deliver cash deposit and withdrawal services to the customers, among others.

The CBN further instructed that BNCHs shall display in a conspicuous place on its premises the following: i. Name and logo.

ii. Services offered.

iii. A notice to the effect that services shall be provided subject to availability of funds and confirmation of debit from customer’s account for withdrawal services.

iv. Charges or fees applicable for each service which are payable by the customers.

v. The dedicated telephone number(s) and email addresses through which customers can contact the BNCH.

vi. Times/Period during which services are available to members of the public.

KN

Tags: Central Bank of Nigeria Kennedy Nnamani