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  • Business - Economy
  • Updated: March 15, 2022

CBN Limits Cash Retrieval To N1 Million For Cash Collection Centres

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Okojie Kelvin Echiejile
Okojie Kelvin Echiejile

I am an astute, dedicated, devoted, and intelligent investigator of economic, and financial news and...

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The Central Bank of Nigeria has set a N1 million and N500,000 minimum transaction limit for corporate and individual transactions utilizing Bank Neutral Cash Hubs (BNCHs) respectively.

This was revealed by the banking authorities in a guideline for the registration and operation of Bank Neutral Cash Hubs in Nigeria, which was issued on Monday.

"The threshold for acceptable transactions at a BNCH should be as follows: Individuals must have a minimum transaction value of N500,000, whereas corporate organizations must have a minimum transaction value of N1 million", it stated.

The Nigerian Cash Management System was made by the apex bank and the Banker's Committee in order to cut costs and improve efficiency in the country's cash management value chain.

According to the statement, the Bank Neutral Cash Hubs are one project aimed at achieving this goal.

"BNCHs are cash collection centers to be created by registered processing firms or deposit money banks based on business needs.

"They will be located in areas with high volumes of commercial activity 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." 

The guidelines also want to make sure that the BNCH is registered and that its activities are properly monitored.

According to the apex bank, one of the key objectives of establishing the BNCH is to reduce the risks and costs borne by banks, merchants, and large cash handlers in the course of cash management activities, deepen financial inclusion, and leverage shared services to improve cash management efficiency.

"A BNCH may carry out the following." it continued. "Receipt of naira denominated deposits from people and enterprises with large amounts of cash on behalf of financial institutions."

High volume cash distribution to members of the public on behalf of financial institutions; any additional activity that the CBN may approve.

"BNCH shall not engage in investing or lending activities, receive, disburse, or engage in any transaction involving foreign currency, engage in any other transaction not prescribed by this guideline; subcontract another entity to carry out its operations, or engage in any other prohibited by the CBN."

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Okojie Kelvin Echiejile
Okojie Kelvin Echiejile

I am an astute, dedicated, devoted, and intelligent investigator of economic, and financial news and...

More From this Author

Central Bank of Nigeria EXCHANGE RATE

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