New laws giving people access to cash don't deal with the acceptance of cash by retailers, the Finance Minister has confirmed.
Details of the legislation to ensure access to cash have been published by the Government.
The bill aims to ensure that "sufficient and effective access to cash is available" and is aiming to maintain cash levels at December 2022 levels.
It also places an obligation on the three main retail banks around access to cash.
The banks will have to ensure:
- a specified percentage of the population must be within no less than 5km and no more than 10km of an ATM
- there is a specified number of ATMs per 100,000 people
- a specified percentage of the population must be within no less than 5km and no more than 10km of a cash service point – either a bank branch or a post office
The criteria will be reviewed "if cash demand drops by 15% in a calendar year compared to the previous year" or at the request of the Minister for Finance.
A review can also be carried out by the Central Bank.
Minister for Finance Jack Chambers told The Hard Shoulder the Access to Cash legislation does not cover retailers who accept 'Card Only' payments.
"We have a National Payments Strategy coming out later this year that addresses that issue," he said.
"It doesn't deal with the acceptance of cash, it's merely access to cash.
"We'll be providing further documentation on that later in the year.
"There are issues, particularly among certain public services, where people have raised concerns which I think we'll have to address.
"There's consultation and engagement on that so we'll be setting out a framework around the acceptance of cash".
'Setting minimum standards'
Minister Chamber said the new bill is about future-proofing services.
"We had 12 retail banks a number of years ago - that's gone to three," he said.
"To protect the future resilience of cash in our country this is about setting minimum standards and protecting the existing cash infrastureutre.
"There'll have to be a minimum of ATMs per 100,000 people and also a specified percentage of the population will have to have a cash service point between 5 and 10kms [away]."
A woman entering her PIN into an ATM in September 2020. Image: Andy Gibson / AlamyMinister Chambers said the country is being split into eight regions for the process which is being overseen the Central Bank.
"[It] will address local deficiencies which might arise within communities, within rural areas and to make sure that people continue to have access to cash; but also [that] small and medium businesses continue to have cash service points," he said.
"This is legislation for the future as we've seen reductions in the volume of cash being used in our economy, which accelerated through COVID; it's about protecting that infrastructure for the future".
Minister Chambers said the responsibility for the ATMs will fall on financial institutions which hold "between 5% and 15% of current or deposit accounts".
"At the moment we've got 99% coverage when it comes to ATMs and cash service points," he said.
"This isn't an issue presently but could become one and that's why there'll be powers given to the Central Bank to intervene and oversee any complaints that might arise".
The legislation around ATMs also applies to non-bank service providers.
