The Central Bank of Nigeria (CBN) in a guideline released on Monday has set a minimum transaction limit for corporate and individuals transacting with Bank Neutral Cash Hubs (BNCH) at N1 million and N500,000 respectively.
The guideline stated that “The threshold for eligible transactions at a BNCH shall be as follows: A minimum transaction value of N500,000 for individuals; a minimum transaction value of N1m for corporate entities.
The central bank declared that 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 added that the guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.
The banking regulator further expressed that one of the key objectives of 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, to also deepen financial inclusion; and leverage on shared services to enhance cash management efficiency.
