A bold move by New Zealand’s central bank could reshape how everyday people and businesses access physical money in towns and cities across the country. The Reserve Bank of New Zealand has launched a public consultation proposing that banks must provide basic cash services free of charge and within easy reach of all Kiwis. Important details and potential impacts are emerging as this proposal gains attention nationwide.
RBNZ Wants Cash Services Nearby for Everyone
The Reserve Bank’s consultation, opened on February 25, 2026 and running until April 10, 2026, seeks public views on a new “cash services standard” that would require banks to ensure people can withdraw, deposit or swap cash without unreasonable travel or cost.
The bank says physical cash remains essential for many daily needs, cultural practices and emergency situations. It notes that over the last decade roughly 40 percent of bank branches in New Zealand have closed, making it harder for individuals and businesses to access cash in rural and some urban areas.
According to RBNZ Director of Money and Cash, Ian Woolford, providing cash and handling cash should be a basic service of a bank and free for customers. The consultation underscores that people expect to convert money in and out of cash easily and that banks have the capacity to cover the cost given their strong profits.
What the Proposed Cash Services Standard Covers
The draft standard aims to create minimum service levels for physical cash access across all districts in the country. It defines three core services people must be able to receive close to where they live:
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Cash withdrawals without fees, so people can get their money when needed.
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Cash deposits free of charge, which is especially important for small businesses and those paid in cash.
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Cash swapping from larger bank notes into smaller notes and coins, essential for everyday purchases.
The plan suggests banks work together where practical to provide these services. One idea is the expansion of multi‑bank full‑service cash hubs where customers of various banks can use the facilities. Five such hubs already exist in Martinborough, Ōpōtiki, Twizel, Waimate and Whangamatā, though not all allow access for every banking customer.
Urban and Rural Access Targets
The RBNZ has included specific distance targets in the proposal:
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Town and city residents should be within three kilometres walking distance of a free cash withdrawal, deposit and cash swap site.
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Those in rural settlements (population 200 to 999) should not have to drive more than 15 kilometres one way.
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Residents in more remote areas should not need to drive more than 30 kilometres for cash services.
District‑specific maps showing proposed service points have been released to help people visualise how this plan might work in practice.
Why Cash Still Matters in New Zealand
Even as digital payments grow, cash continues to play a meaningful role in everyday life for many Kiwis. Research cited by the RBNZ shows that over 80 percent of adults still use cash at least sometimes and more than half store cash. About 8 percent rely on cash as their only form of payment.
Cash is used in social and cultural practices, such as koha (gift giving) and community support, and importantly, it can be critical when digital systems fail. During natural disasters and power outages, cash often remains the most reliable way to pay for essentials.
Small businesses also depend on physical currency. More than seven out of ten small businesses said they would be adversely affected if cash was not available as a payment option.
Who Would Bear the Cost
The RBNZ estimates that providing the minimum standard of cash services would cost banks about 104 million New Zealand dollars per year. However, the central bank argues this is a small share of the collective more than 10 billion dollars in annual pre‑tax profits earned by the banking sector.
Many countries, including the United Kingdom, Ireland and the Netherlands are introducing similar measures to maintain access to cash, highlighting the global relevance of this issue.
Views from the Community and What Comes Next
The six‑week consultation gives New Zealanders a chance to voice their opinions on how cash services should be supported. People can complete an online survey or send written submissions by email or post.
Public reaction, as seen on social media platforms, shows that many people value physical cash and feel recent bank closures have made access more difficult, while others see digital payments as sufficient for their needs.
Economists and policy analysts say the outcome of this consultation could shape the future of money use in New Zealand and influence how banks balance digital and physical service models. Supporters say ensuring access to cash protects financial inclusion, while critics warn it might raise costs or complicate banking operations.
The final decision will likely consider public feedback, operational challenges and international trends before any new rules are put in place.
