New Zealand opens consultation on local cash access

The Reserve Bank of New Zealand proposes new standards for cash services, aiming to ensure urban residents face only a walkable distance to withdraw, deposit, or get change, while rural residents should face a reasonable driving distance.

Services must also be free of charge and without unreasonable wait times.

Ian Woolford, Director of Money and Cash, emphasized that banks must provide these services because cash is an essential part of a customer's relationship.

He stated, "People put money into their bank accounts and expect to be able to convert it easily, quickly and free, into cash and vice versa.

" The RBNZ seeks to reverse the trend of banks reducing cash access points, particularly in rural areas, and is open to various implementation methods.

District maps illustrate the proposal's potential impact across 66 territorial authorities, assuming shared cash infrastructure, mirroring existing regional banking hubs.

The RBNZ projects substantial benefits from its proposal, estimating $2.83 billion per annum for New Zealand from appropriate cash services.

This contrasts with an additional annual cost to banks of around $104 million.

Ian Woolford highlighted this cost as "negligible when compared to the more than $10 billion annual pre-tax profits earned together by the banking sector.

" He also noted that many countries, including the UK, Ireland, and the Netherlands, are introducing similar laws to ensure adequate cash access.

Research indicates 72 percent of small businesses would be adversely affected if cash were unavailable.

An RBNZ survey found over 80 percent of adults use cash sometimes, and 8 percent rely on it as their sole means of payment.