The minimum transaction limit for corporate transactions with Bank Neutral Cash Hubs (BNCHs) has been set at NGN1 million while individual transactions are at NGN500,000 by the Central Bank of Nigeria (CBN).
This was revealed by the banking regulator in a guideline for the registration and operation of bank-neutral cash hubs in Nigeria, which was published on Monday.
In partnership with the banker’s committee, the apex bank created the Nigerian cash management system in an effort to cut costs and increase operational efficiency in the country’s cash management value chain.
The CBN said, according to the guidelines, a BNCH is permitted to carry out activities like receipt of Naira denominated deposits on behalf of financial institutions from individuals and businesses with high volumes of cash.
“It can also carry out high volume cash disbursement to members of the public on behalf of financial institutions, and any other activities that may be permitted by the CBN. However, it is not permitted to carry out investing or lending activities, or receive, disburse or engage in any transaction involving foreign currency,” it said.