CBN issues final guidelines for bank fundraising centers – Igbere TV

0

The Central Bank of Nigeria (CBN) has released the final draft guidelines for the establishment of Bank Neutral Cash Hubs (BNCH), reports IgbereTV

This comes two months after CBN first released an exposure draft for comment and review.

The final guideline which was posted on its website on Thursday is titled “Guidelines for the Registration and Operation of Neutral Banking Hubs in Nigeria”.

He explained in the guidelines that BNCHs are fundraising centers to be established by registered (licensed) processing companies or depository banks depending on the needs of the business.

The CBN also said the hubs would be located in areas with a high volume of commercial activity and cash transactions.

He further stated that the hubs would provide a platform for customers to make cash deposits and receive value regardless of which bank their account is domiciled with.

“This guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision,” the CBN said.

According to the CBN, the main purpose of establishing the BNCH was to reduce the risks and costs borne by banks, traders and large cash handlers in carrying out cash management activities; deepen financial inclusion and leverage shared services to improve cash management efficiency.

The CBN also added that the functions of the BNCH include receiving naira-denominated deposits on behalf of financial institutions from individuals and businesses with high volumes of cash; disbursement of naira-denominated withdrawals on behalf of financial institutions to individuals and businesses with large volumes of cash, and any other activity that may be authorized by the apex bank.

CBN said, “BNCHs are fundraising centers that should be established by registered (licensed) processing companies or depository banks (DMBs) depending on the business needs.

“They will be located in areas with a high volume of business activity and cash transactions. The hubs will provide a platform for customers to make cash deposits and receive value regardless of bank with which their account is domiciled.

Apex Bank said the BNCH can do the following: “Receive naira-denominated deposits on behalf of financial institutions from individuals and businesses with large volumes of cash; disbursement of naira-denominated withdrawals on behalf of financial institutions to individuals and businesses with large volumes of cash; and any other activity that may be authorized by the CBN. »

The directive, however, prohibits BNCHs “from carrying out investment or lending activities; receive, disburse or engage in any transaction involving foreign currencies; nor subcontract to another entity the performance of its operations”

However, only depository banks (DMBs) and cash handling companies (CPCs) are eligible to apply for BNCH licenses.

Share.

Comments are closed.