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CBN Introduces Cash Centres To Reduce Currency Management Cost

The Central bank of Nigeria has introduced a cash collection centre to enable it reduce cost and improve operational efficiency in the country’s cash management value chain.

The CBN said in a guideline released on Monday and seen by THE WHISTLER that the new cash centre would be known as ‘Bank Neutral Cash Hubs.’

The apex bank said the initiative was introduced with the collaboration of the Banker’s Committee.

It said BNCHs are cash collection centers to be established by registered processing companies or Deposit Money Banks based on business needs.

According to the CBN, the cash centres will be located in areas with high volumes of commercial activities and cash transactions.

The CBN said, “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 said some of the activities of the BNCHs would be to receive naira denominated deposits on behalf of financial institutions from individuals and businesses with high volumes of cash.

It, however, stated that the centres are not permitted to 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 the guideline.

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