The Central Bank of Nigeria has pegged the minimum transaction limit for corporate and individuals transacting with Bank Neutral Cash Hubs at N1m and N500,000 respectively.
The banking regulator disclosed this in a guideline for the registration and operation of Bank Neutral Cash Hubs in Nigeria released on Monday.
According to the apex bank, it launched the Nigerian Cash Management System in a bid to reduce cost and improve operational efficiency in the country’s cash management value chain in collaboration with the Banker’s Committee.
It said one initiative towards the goal is the Bank Neutral Cash Hubs. The CBN said, “BNCHs are cash collection centres to be established by registered processing companies or Deposit Money Banks based on business needs.
It added that the guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.
The apex bank said one of the key objectives for setting up the BNCH is to reduce the risks and costs borne by banks, merchants, and huge cash handlers in the course of cash management activities; deepen financial inclusion; and leverage on shared services to enhance cash management efficiency.
