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.
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.
“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.
