RBNZ proposing new rules for banks to support free cash transactions

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › RBNZ proposing new rules for banks to support free cash transactions

1 | 2 | 3 | 4

7769 posts

Uber Geek
+1 received by user: 7402

ID Verified

Trusted

Subscriber

#3465098 26-Feb-2026 10:36

So...this will cost the banks millions.
Who do you reckon will end up paying for it? It's not going to be done out of charity or good will.

Ultimately, this cost will be borne by everyone that uses a bank, whether they live in the dark ages and use cash, or not.

The only good reason I can see for using cash is to avoid tax.

Handsome Dan Has Spoken.
Handsome Dan needs to stop adding three dots to every sentence...

Handsome Dan does not currently have a side hustle as the mascot for Yale

*Gladly accepting donations...

Senecio

2851 posts

Uber Geek
+1 received by user: 3159

ID Verified

Lifetime subscriber

#3465100 26-Feb-2026 10:39

I haven’t withdrawn cash from an ATM in at least 10yrs. And I reckon I’ve set foot inside a physical branch about twice in that same time. I understand that not everyone is the same and some people still like to use cash.

elpenguino

3576 posts

Uber Geek
+1 received by user: 2938

#3465102 26-Feb-2026 10:44

Senecio:

I haven’t withdrawn cash from an ATM in at least 10yrs. And I reckon I’ve set foot inside a physical branch about twice in that same time. I understand that not everyone is the same and some people still like to use cash.

I'm generally the same although I've had a couple of experiences such as helping fundraising youth. It was suprisingly hard to bank their cash.

The whole idea of a bank is to handle money. I know the form of money has changed to digits on a screen for most of us but it does seem incongruous for banks to not handle money in its primary form.

Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21

eracode

Smpl Mnmlst
9332 posts

Uber Geek
+1 received by user: 6198

ID Verified

Trusted

Lifetime subscriber

#3465104 26-Feb-2026 10:49

I can go years without ever handling any cash. However I believe that what the RBNZ is doing is good because cash is still a fundamental and important feature of society for many reasons.

Because of that, IMO cash will not cease to exist within the lifetimes of any of us here. You can’t have such an important societal feature - not the least of which is cash being legal tender - and not have a banking system that keeps its use simple and easy.

Sometimes I just sit and think. Other times I just sit.

geek3001

220 posts

Master Geek
+1 received by user: 330

ID Verified

Subscriber

#3465105 26-Feb-2026 10:53

elpenguino:

It was suprisingly hard to bank their cash.

This might be as a result of Anti-Money Laundering rules.

Bank tellers are entitled to refuse to accept cash deposits of any amount, if they are not satisfied as to the origin of that cash. I have seen this happen at my local AS B. The bank staff were firm in their view that the customer could not properly explain the source of the cash. The customer was not impressed and walked out without completing the deposit.

KiwiSurfer

1722 posts

Uber Geek
+1 received by user: 993

ID Verified

Lifetime subscriber

#3465107 26-Feb-2026 10:55

Behodar:

I haven't deposited coins in person for donkey's years, but I remember they used to just put them on a scale and it displayed the value. Is that no longer a thing? Are they actually counting them manually?

ASB still has automatic coin counting machines. Don't think any other banks do nowdays? Could be one of those things they now only offer at bigger branches.

Geekzone support

Support Geekzone with one-off or recurring donations Donate via PressPatron.

rugrat

3140 posts

Uber Geek
+1 received by user: 944

Lifetime subscriber

#3465131 26-Feb-2026 11:51

Handsomedan:

The only good reason I can see for using cash is to avoid tax.

I use cash to avoid payWave charges, would rather carry cash then carry card and risk losing it.

Have no problem in Christchurch finding ATM, some have been replaced with third party machines which I haven’t used, but I got the impression if a NZ bank access was free, they only charged if overseas bank, I.e a tourist using it. Either written above it or I saw it on the screen display.

KiwiSurfer

1722 posts

Uber Geek
+1 received by user: 993

ID Verified

Lifetime subscriber

#3465134 26-Feb-2026 11:53

You can use a old school EFTPOS card to avoid contactless charges. It's why I still have a Kiwibank EFTPOS card TBH. If non-surchage then I fall back to Amex if they accept it.

cruxis

512 posts

Ultimate Geek
+1 received by user: 346

#3465137 26-Feb-2026 11:59

I still use cash — it’s got that ‘sorted on the spot’ power. If I need a tradie, I’ll just say, ‘Hey, can you throw up a small fence for two grand cash?’ and it’s done. When I’m buying something at a stall or a little shop and it comes to just under twenty bucks, I just hand over a $20, tell them to keep the change, and off I go. I’ve even done that at the petrol station a few times.

Honestly, the whole “cash users are suspicious” vibe that’s popped up lately is pretty unfair. Most people using cash are just… using cash. No drama needed.

mudguard

2327 posts

Uber Geek
+1 received by user: 1250

#3465138 26-Feb-2026 12:03

cruxis:

I still use cash — it’s got that ‘sorted on the spot’ power. If I need a tradie, I’ll just say, ‘Hey, can you throw up a small fence for two grand cash?’ and it’s done.

As I mentioned before, as a pleb paying PAYE my whole life it's a bit on the nose. I can't do any work sans GST/Income tax etc

wellygary

8810 posts

Uber Geek
+1 received by user: 5287

#3465139 26-Feb-2026 12:06

KiwiSurfer:

ASB still has automatic coin counting machines. Don't think any other banks do nowdays? Could be one of those things they now only offer at bigger branches.

ANZ have them in some Foyers attached to a smart ATM, so you can deposit both notes and coins,

They also have a change machine that will break large notes into smaller notes or coins..

I'm guessing that the banks will start to look at some sort of combined machine that can take dispense notes/coins if this plan goes through,.

Although the people most happy with this proposal will be Armourguard..

Apple TV

Stream your favourite shows now on Apple TV (affiliate link).

mattwnz

20515 posts

Uber Geek
+1 received by user: 4795

#3465157 26-Feb-2026 13:05

geek3001:

elpenguino:

It was suprisingly hard to bank their cash.

This might be as a result of Anti-Money Laundering rules.

Bank tellers are entitled to refuse to accept cash deposits of any amount, if they are not satisfied as to the origin of that cash. I have seen this happen at my local AS B. The bank staff were firm in their view that the customer could not properly explain the source of the cash. The customer was not impressed and walked out without completing the deposit.

IMO there makes little sense because they could deposit it in an ATMs which automatically counts the cash and deposits it into the account instantly. Not unless there is a limit on that. I do wonder if the anti money laundering policy has actually worked at all. To me ask it does it cause massive inconvenience and red tape. When I suspect the criminals may have worked out ways around it by now.

KiwiSurfer

1722 posts

Uber Geek
+1 received by user: 993

ID Verified

Lifetime subscriber

#3465160 26-Feb-2026 13:23

mattwnz:

IMO there makes little sense because they could deposit it in an ATMs which automatically counts the cash and deposits it into the account instantly. Not unless there is a limit on that. I do wonder if the anti money laundering policy has actually worked at all. To me ask it does it cause massive inconvenience and red tape. When I suspect the criminals may have worked out ways around it by now.

ASB introduced a change some years ago.

Previously anyone could turn up to any ASB ATM and do cash/coin deposits into any account with the ASB. You would enter the account number into the ATM and deposit the cash/coins and get a receipt for the deposit. This could all be done without a card etc.

I assume this was frowned upon by the power that be. ASB changed this so that only ASB cardholders could deposit cash. I remember this because I reguarly used the above to deposit takings from BBQ fundrasing events I helped out with. I ended up just opening an ASB account just to get a ASB card and was able to deposit (using my ASB card as 'authentication') into any other ASB account including the organisation's accounts.

I can understand the AML aspect but also can see how it can get in the way of legit transactions.

mudguard

2327 posts

Uber Geek
+1 received by user: 1250

#3465202 26-Feb-2026 15:28

mattwnz:

IMO there makes little sense because they could deposit it in an ATMs which automatically counts the cash and deposits it into the account instantly. Not unless there is a limit on that. I do wonder if the anti money laundering policy has actually worked at all. To me ask it does it cause massive inconvenience and red tape. When I suspect the criminals may have worked out ways around it by now.

Hypothetically if you put more than $10,000 into an ATM numerous times it will be reported. The whole point is all those hundred dollar notes in circulation go nowhere near a bank.

richms

29098 posts

Uber Geek
+1 received by user: 10207

Trusted

Lifetime subscriber

#3465207 26-Feb-2026 15:33

Even if you do deposit into ATMs, with your card and its sensible amounts the banks will freeze things and demand personal information from you. AML just ensures that the cash economy never comes close to the banked economy. I suspect that these changes are to get more participation from the banked economy with cash so that they can get better data on it.

Remember that someone was refused service by a supermarket because they wanted to pay by cash. If they were serious about better access to cash they would stop that sort of carryon.

Richard rich.ms

1 | 2 | 3 | 4