The Central Bank of Nigeria, CBN has warned operators of cash hubs not to deal in foreign currency or turn themselves to bureau dechange, BDC operators. The warning was contained in the guidelines released by the apex bank on Monday, in which the regulator also pegged the minimum withdraw for individual and corporate entities at N500,000 and N1 million, respectively.

The Godwin Emefiele’s led CBN the Bank Neutral Cash Hubs operations will be closely monitored to ensure that they abide by the guidelines set by the regulator.

The apex bank said the BNCH was set up in conjunction with the Bankers Committee, a body representing all the commercial banks in the country, noting that the cash centres will serve as a one stop shop for customers and relieve banks of certain costs.

“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,” the CBN said, noting that the BNCH was launched in a bid to reduce cost and improve operational efficiency in the country’s cash management value chain.

According to the apex bank, “BNCHs are cash collection centres to be established by registered processing companies or Deposit Money Banks based on business needs.

READ ALSO:  Kemi Badenoch And The Betrayal Of Heritage: The Painful Truth Behind Colonialism’s Legacy

“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.”

It added that the guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.

The BNCH system, it explained, is set up to reduce the risks and costs borne by banks, merchants, and huge cash handlers in the course of cash management activities, apart from  deepening financial inclusion, enhance cash management efficiency, among other reasons.

The apex banks narrates the primary functions of BNCH thus: “a BNCH may carry out the following: Receipt of naira denominated deposits on behalf of financial institutions from individuals and businesses with high volumes of cash.

“High volume cash disbursement to members of the public on behalf of financial institutions; any other activities that may be permitted by the CBN.

“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,” the government bank said.