The Central Bank of Nigeria (CBN) in collaboration with the Bankers’ Committee has introduced cash collection centres called Bank Neutral cash hubs. This is to enable it to reduce cost and improve operational efficiency in the country’s cash management value chain.
This is according to a recently released circular titled, ”Guidelines for the registration & operation of Bank Neutral Cash Hubs (BNCH) in Nigeria.”
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BNCHs (Bank Neutral Cash Hubs) are cash collecting centres that are set up by registered processing firms or Deposit Money Banks (DMBs) in response to business needs.
They’ll be in places where there are a lot of commercial operations and monetary transactions. Customers will be able to make cash deposits and receive value at the hubs regardless of which bank their account is held.
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Key highlights
- This guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.
- The BNCH can’t carry out investing or lending activities. Also, BNCH can’t receive, disburse, or engage in any transaction involving foreign currency.
- The Deposit Money Banks (DMBs) and Cash Processing Companies (CPCs) are eligible to apply for the BNCH.
- The BNCH would be able to receive naira denominated deposits on behalf of financial institutions from individuals and businesses with high volumes of cash.
- CBN has the right of access to the BNCH facility for the purpose of compliance monitoring of activities and examination of records/books.
- BNCH shall comply with the reporting requirements and timelines specified in the Cash Activity Reporting Portal (CARP) Industry Handbook by providing data and information.
The problem is that some of us has a knowledge to do business but the problem is capital so how to make turnover in the account is another problem so this has stopped many of us from benefiting this loan.
What are the advantages of the diasporas activities of these nature and foreign reserve, position in an economy for improved GNP?