FIVE years after mooting the idea, the Central Bank of Nigeria (CBN) at the weekend granted full registration status to two companies as cash-in-transit companies and approval in principle as currency sorting entities.
The approved companies are Integrated Cash Management Systems Limited and Bankers Warehouse Limited.
These companies will take to the dual duties of handling cash movement and currency-sorting operations, which the apex bank currently handles.
The Guardian learnt that this development could pave the way for the entrance of foreign firms with their Nigerian counterparts into the new sub-sector of the financial market, a development some have argued would create more jobs for Nigerians
It was also learnt that when in full operation, the initiative would make it possible for banks to reduce the volume cash in their vaults at any time, thereby reducing their exposure to such risks as robberies.
According to the letter of approval to one of the two firms, the apex bank stated: “We are pleased to inform you that the CBN has granted the following for your company: full registration as a cash-in-transit company; approval-in principle as a currency sorting (processing) company for a period of 12 months from the date of this letter to enable your company meet the outstanding registration requirements which are as follows: commencement of currency sorting (processing) operation; and balance of paid-up capital of N2.9 billion.
The letter, which was signed by Mohammed Nda, Director, Currency Operation, CBN, added: “As soon as you are able to meet the outstanding requirements, you are required to apply for approval for full registration.
“Please note that in line with the policy of the Central Bank of Nigeria on the operation of registered service provider in cash handling industry, you are expected to submit monthly reports to the Director, Currency Operation department, Central Bank of Nigeria not later than 15th day of the following month on your activities, detailing the volume of banknotes evacuated and processed, customer and locational distribution of activities, stock of armoured vehicles and processing equipment and facilities, critical incident such as robbery attacks on bullion vehicles, loss of cash in transit, details of dispute between CIT companies and clients, accidents, pilferages, and other matters.”
Nda explained that, “as part of oversight functions of the CBN, periodic on-site inspection of you facilities, process, structures, agreement with cargo and haulage companies, insurance and adequacy of systems deployed to mitigate risks will be carried by the bank.”
SOURCE:http://www.ngrguardiannews.com
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