The Reserve Bank of New Zealand is recommending that banks nationwide offer essential cash handling services to consumers and businesses.
RBNZ has launched a six-week public consultation to gather views on guaranteeing a baseline level of cash access in districts.
“We believe banks must provide cash services to customers, free of charge, because cash is an essential part of a customer’s relationship with their bank,” RBNZ director of money and cash Ian Woolford said.
He pointed out that banks have been scaling back locations for cash withdrawals, deposits, and change services, hitting rural areas hardest, where about 40% of branches have closed in the past decade.
“We want this to change, and we are open as to how,” Woolford said.
Cash provides societal benefits, serving economic, social, and cultural needs, “and as the steward of cash we are focused on ensuring the cash system is healthy and available,” he added.
The RBNZ indicated a “multi-bank, full-service cash site” as the optimal way to deliver basic cash access standards.
These hubs would provide any bank’s customers with three cash services: withdrawals, deposits, and exchanging high-denomination notes for lower notes and coins.
It noted that five full-service hubs already operate in Martinborough, Ōpōtiki, Twizel, Waimate, and Whangamatā. However, they serve only ANZ, ASB, BNZ, Kiwibank, TSB, and Westpac customers.
Other sites provided only partial services or were restricted to customers of the hosting bank.
The RBNZ is trialling an ATM in Waipukurau that operates 24/7, letting users exchange cash for larger or smaller denominations, withdraw funds, and soon deposit business takings straight into accounts.
The proposal holds banks accountable for sufficient nationwide cash sites, recommending 2.5 per 10,000 people.
Urban sites should be located where at least 1,000 people live within a 3 km walking distance. Rural sites would serve 200–1,000 people, located within a 15 km drive—or up to 30 km in remote areas.
66 district maps were produced, proposing urban and rural hub locations.
RBNZ said cash supply and collection arrangements for districts should be finalised later.
Banks should foot the bill since they earn ample profits, according to Woolford, he added that the benefits of cash access far exceed the costs.