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CBN to withdraw BDCs’ licences as deadline elapses

By on August 1, 2014

As the deadline fixed for Bureau De Change  (BDC) operators to comply with the new capital requirements ends today, defaulting firms will have their operating licences revoked by the Central Bank of Nigeria (CBN), THISDAY learnt thursday.

However, a reliable source at the central bank who spoke to THISDAY on condition of anonymity disclosed that a lot of the BDC operators have complied. He however, declined to disclose the number of firms that have met the new capital requirements for the sub-sector.

“I can confirm to you that many of the BDCs have applied and for those that have not met the deadline, the guideline is clear about what they should expect,” the source explained.

In order to ensure that BDC comply with the new capital requirements, the central bank had extended the deadline to July 31, 2014, from an earlier deadline of July 15 2014.

The central bank had also stated that interest would now be paid on the mandatory cautionary deposit of N35 million, based on banking industry savings account rate.

The CBN had announced a new minimum capital requirement of N35 million for the operation of BDCs in the country, up from the N10 million it was previously.

It among other requirements, also reviewed the mandatory cautionary deposit for BDCs upward to N35 million.

But the Association of Bureau de Change Operators of Nigeria (ABCON) last week proposed a 40 week time table for operators in the sub-sector to meet the new minimum capital requirements.

ABCON President, Alhaji Aminu Gwadabe said the 40 week proposal had been sent to the CBN Governor for consideration. He had maintained that the July 31 deadline was too short for operators to comply with the statutory and legal requirements of the new policy.

Furthermore, he pointed out that proposal sent by the association contained actions needed to be taken to enhance the successful implementation of the policy for the sub-sector.

He also appealed to the CBN to take a critical look at the minimum capital requirement of N35 million and the requirement of N35 million as cautionary deposit, saying it implies that the apex bank has raised the minimum capital base of BDCs to N70 million.

 

 

[This Day]