The Central Bank of Nigeria (CBN) has said Bank Neutral Cash Hubs (BNCHs), established to provide a platform for customers to make cash deposits and receive value irrespective of the bank with which their account is domiciled are not permitted to receive, disburse, or engage in any transaction involving foreign currency.
The central bank also barred the hubs from carrying out investing or lending activities; sub-contract another entity to carry out their operations as well as any other activities that may be prohibited by the apex bank.
The CBN disclosed this in the Guidelines for the Registration and Operation of Bank Neutral Cash Hubs (BNCH) in Nigeria, which was posted on its website. The initiative, which was developed in collaboration with the Banker’s Committee is in furtherance of the central bank’s mandate to promote a sound financial system in the country.
The BNCH is one of the initiatives from the Nigerian Cash Management System (NCMS) conceived by both parties to reduce cost and improve operational efficiency in the country’s cash management value chain.