CBN sets N1million limit for collection centres
The Central Bank of Nigeria has pegged the minimum transaction limit for corporate and individuals transacting with Bank Neutral Cash Hubs (BNCH) at N1m and N500,000 respectively.
The banking regulator disclosed this in a guideline for the registration and operation of Bank Neutral Cash Hubs in Nigeria released on Monday.
It said, “The threshold for eligible transactions at a BNCH shall be as follows: A minimum transaction value of N500,000 for individuals; a minimum transaction value of N1m for corporate entities.”
According to the apex bank, it launched the Nigerian Cash Management System in a bid to reduce cost and improve operational efficiency in the country’s cash management value chain in collaboration with the Banker’s Committee.
One initiative towards the goal is the Bank Neutral Cash Hubs which are cash collection centres to be established by registered processing companies or Deposit Money Banks based on business needs.
According to the CBN, the BNCH “will be located in areas with high volumes of commercial activities and cash transactions. The hubs will provide a platform for customers to make cash deposits and receive value irrespective of the bank with which their account is domiciled.”
It added that the guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.
The apex bank said one of the key objectives for setting up the BNCH is to reduce the risks and costs 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.
It added, “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.”
Punch
