Expertise
In furtherance of its mandate to promote a sound financial system in Nigeria, the Central Bank of Nigeria (CBN), in collaboration with the Banker’s Committee initiated the Nigerian Cash Management System (NCMS). The NCMS aimed at reducing cost and improving the efficiency in the cash management value chain in Nigeria.
In furtherance of its mandate to promote a sound financial system in Nigeria, the Central Bank of Nigeria (CBN), in collaboration with the Banker’s Committee initiated the Nigerian Cash Management System (NCMS). The NCMS aimed at reducing cost and improving the efficiency in the cash management value chain in Nigeria. Further to this, on 2nd June 2022, the CBN introduced Guidelines for the Registration and Operation of Bank Neutral Cash Hubs (BNCHs) in Nigeria (the “Guidelines”). Below are the key takeaways from the Guidelines.
What are BNCHs?
BNCHs are cash collection centres to be established by licensed Cash Processing Companies (CPCs) or Deposit Money Banks (DMBs) authorised by the CBN. They will be located in areas with high volumes of commercial activities and cash transactions and will provide a platform for customers to make cash deposits and receive value irrespective of the bank with which their account is domiciled.
The purpose of setting up BNCHs is to reduce the risks and costs borne by banks, merchants, and huge cash handlers in the course of cash management activities, to deepen financial inclusion, and to leverage on shared services to enhance cash management efficiency.
Important Notice: The information contained in this Article is intended for general information purposes only and does not create a lawyer-client relationship. It is not intended as legal advice from Jackson, Etti, & Edu (JEE) or the individual author(s), nor intended as a substitute for legal advice on any specific subject matter. Detailed legal counsel should be sought prior to undertaking any legal matter. The information contained in this Article is current to the last update and may change. Last Update: October 1, 2024.
