The Reserve Bank of New Zealand – Te Pūtea Matua is highlighting how it’s working to ensure that New Zealanders can continue to withdraw cash, pay with cash and deposit cash as, and when, they want to.
The bank says cash is used for economic, social and cultural reasons, and as the cash steward it will keep issuing cash for as long as the public needs it.
“Research shows 72 percent of small businesses would be adversely affected if cash was unavailable as a means of payment. Our own survey tells us while over 80 percent of adults use cash sometimes, over half (56 percent) store cash and eight percent rely on cash.
Ian Woolford, Director of Money and Cash, says people should be able to use cash as and when they want to but they can’t if cash services aren’t available.
Our view is that it is getting too hard for people to withdraw and use cash, deposit cash or make change, as bank branches have closed especially in rural areas…
“Our view is that it is getting too hard for people to withdraw and use cash, deposit cash or make change, as bank branches have closed especially in rural areas. Addressing this is not an easy task but it’s one we’re committed to.”
In Waipukurau this month the bank started a 12-month research project for a cash depot in its first Community Cash Trial with Central Hawke’s Bay District Council.
Approved local businesses and community organisations can use the depot to get cash and make change in low denomination banknotes, free of fees. Until now, people and businesses in Waipukurau and Waipawa have been forced to travel up to 50km to Hastings, Havelock North and Dannevirke, since local bank branches closed and remaining ATMs were inadequate, the banks says.
Woolford says the bank is grateful for the support from Central Hawke’s Bay District Council and local residents.
“We are looking for solutions to real community cash issues and we’ll learn from the Waipukurau trial as we plan similar research trials in a small number of towns across New Zealand next year.”
The bank’s statement notes the public expect banks to provide cash services to them.
“In addition to the Community Cash Trial we are looking at how best to expand cash services across New Zealand and one option is encouraging banks to voluntarily commit to providing their customers with good access to full cash services to a minimum standard. We will speak with banks about this approach soon, but we may need to use our existing powers to obtain the right outcomes if voluntary commitments fall short.”
