The Reserve Bank of New Zealand is proposing that banks provide a minimum level of cash services so businesses, community groups and people can withdraw cash, deposit cash, and get change free-of-charge close to where they live.
Research shows 72% of small businesses would be adversely affected if cash was unavailable as a means of payment.
The bank’s own survey says that over 80% of adults use cash sometimes, over half (56%) store cash and 8% rely on cash as their sole means of payment.
It proposes a cash services standard that would set a minimum number and location of bank-funded cash services or places where bank customers can withdraw, deposit and get change (for example exchanging a $50 banknote for $5 banknotes and coins).
The bank proposes that:
- people living in urban areas should face only a walkable distance to withdraw cash, deposit cash or get change
- people living rurally should only face a reasonable driving distance to withdraw cash, deposit cash or get change
- people should not have to face unreasonable wait times
- cash services should be free of charge.
The bank wants to know if retailers and businesses agree with this.
Many countries have or are introducing similar new laws to ensure adequate access to cash services, including the UK, Ireland, and the Netherlands.