The Central Bank of Nigeria (CBN) has fixed a non-refundable fee of N500,000 as a financial obligation for approval to operate the Bank Neutral Cash Hubs (BNCH).
The apex bank also levied an N100,000 non-refundable application fee for the BNCH.
It disclosed this in a document titled ‘Guidelines for the Registration and Operation of Bank Neutral Cash Hubs (BNCH) In Nigeria’, published on its official website on Thursday.
“The Central Bank of Nigeria (CBN), in furtherance of its mandate to promote a sound financial system in Nigeria, in collaboration with the Banker’s Committee initiated the Nigerian Cash Management System (NCMS) which seeks to reduce cost and improve operational efficiency in the country’s cash management value chain. One initiative toward the above-stated goal is the introduction of Bank Neutral Cash Hubs (BNCH), it stated.
BNCHs are cash collection centres to be established by registered (licensed) processing companies or Deposit Money Banks (DMBs) based on business needs, it explained.
“They 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,” CBN stated.
According to the bankers’ bank, the guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision, adding that the key objective of setting up BNCH is to reduce the risks and costs borne by banks, merchants and huge cash handlers in the course of cash management activities.
It is also to deepen financial inclusion and leverage on shared services to enhance cash management efficiency, it said.
A promoter of BNCH will be required to submit a formal application to the CBN’s Currency Operations Department, the bank noted, emphasising that “a formal application for approval shall be made for every new BNCH site to be set up.”
CBN, however, said the fees might be amended as it deems necessary.
“In line with the CBN Act 2007), the CBN shall: Issue and review the guidelines; and exercise any other powers in line with the BOFIA 2020(Bank and Other Financial Institutions Act), the CBN Act 2007 or any other applicable law,” it added.