RBNZ proposing new rules for banks to support free cash transactions

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

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#3465208 26-Feb-2026 15:36

mudguard:

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.

I am fairly sure that you cannot put 10K into an ATM, the ATMs top out at 50 notes,

You can deposit up to 50 notes (of any denomination) per transaction when inserting your ASB card at the ATM.
Larger amounts can be deposited over the counter at any ASB branch.

https://www.asb.co.nz/help/is-there-a-limit-to-the-amount-limit-i-can-deposit-at-an-asb-instant-deposit-atm.html

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#3465236 26-Feb-2026 16:24

elpenguino:

Heard this on RNZ.

Cost of suggested ATMs = $100m

Annual NZ bank profits - $10B

I assumed the 100m is capital investment not operating cost. The annual operating cost would be depreciation ... say 15% pa DV (I don't know the IRD rate for an ATM), R&M, stocking, a little power and data. Could be somewhere between 15m and 20m in year one.

I heard an Economics of Everyday Things podcast on the ATMs you see in dairies, servos etc. The margins on them are apparently very skinny, especially when you consider the cost/risk of having cash sitting around and transporting it. I guess some of that would be different for in branch ATMs.

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#3465258 26-Feb-2026 19:01

MikeAqua:

elpenguino:

Heard this on RNZ.

Cost of suggested ATMs = $100m

Annual NZ bank profits - $10B

I assumed the 100m is capital investment not operating cost. The annual operating cost would be depreciation ... say 15% pa DV (I don't know the IRD rate for an ATM), R&M, stocking, a little power and data. Could be somewhere between 15m and 20m in year one.

I heard an Economics of Everyday Things podcast on the ATMs you see in dairies, servos etc. The margins on them are apparently very skinny, especially when you consider the cost/risk of having cash sitting around and transporting it. I guess some of that would be different for in branch ATMs.

Not to mention that the cost is the cost to the bank not the cost to consumers. Banks won’t be interested in margin dilution so will probably be looking to put a healthy margin on these additional costs.

gzt

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#3465271 26-Feb-2026 20:24

Am I correct - The Reserve Bank wants this because cash machine availability will increase GDP

first article: “Giving the public an appropriate level of cash services provides benefits to New Zealand of $2.83 billion per annum, at an additional annual cost to banks of around $104 million.

mattwnz

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#3465273 26-Feb-2026 20:57

wellygary:

mudguard:

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.

I am fairly sure that you cannot put 10K into an ATM, the ATMs top out at 50 notes,

You can deposit up to 50 notes (of any denomination) per transaction when inserting your ASB card at the ATM.
Larger amounts can be deposited over the counter at any ASB branch.

https://www.asb.co.nz/help/is-there-a-limit-to-the-amount-limit-i-can-deposit-at-an-asb-instant-deposit-atm.html

i think you can deposit more by doing multiple transactions.

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#3465290 26-Feb-2026 23:37

mattwnz:

wellygary:

I am fairly sure that you cannot put 10K into an ATM, the ATMs top out at 50 notes,

You can deposit up to 50 notes (of any denomination) per transaction when inserting your ASB card at the ATM.
Larger amounts can be deposited over the counter at any ASB branch.

https://www.asb.co.nz/help/is-there-a-limit-to-the-amount-limit-i-can-deposit-at-an-asb-instant-deposit-atm.html

i think you can deposit more by doing multiple transactions.

That definitely won't cause you AML headaches /s

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Rikkitic

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#3465332 27-Feb-2026 09:14

You anti-cash people sure do have short memories. The moans of despair in Auckland and Hawkes Bay and elsewhere When Gabrielle and other storms wiped out the power for a week or more were long and loud and desperate. People were crying that they couldn't pay for food or anything else because they didn't have any cash and couldn't get hold of any. In a country as prone to major power cuts caused by climate-change floods and landslides and earthquakes and other natural disasters as this one is, be grateful there is an alternative to electronic transactions. Cash is king and long may it rule!

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mudguard

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#3465340 27-Feb-2026 09:48

Rikkitic:

You anti-cash people sure do have short memories. The moans of despair in Auckland and Hawkes Bay and elsewhere When Gabrielle and other storms wiped out the power for a week or more were long and loud and desperate. People were crying that they couldn't pay for food or anything else because they didn't have any cash and couldn't get hold of any. In a country as prone to major power cuts caused by climate-change floods and landslides and earthquakes and other natural disasters as this one is, be grateful there is an alternative to electronic transactions. Cash is king and long may it rule!

I mean that's great and all that. Say you put $1000 under the mattress, you need to make sure you've got a mix of denominations too so you don't have $50 for the loaf of bread and they've got no change.

Starlink etc probably mitigates some of the issues. And whether they could move smart phone services (IE banking only) to satellites in an emergency as well. It is probably extremely rare for a mobile network to go down (which is what happened in Napier I thought).

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#3465347 27-Feb-2026 09:57

Rikkitic:

You anti-cash people sure do have short memories. The moans of despair in Auckland and Hawkes Bay and elsewhere When Gabrielle and other storms wiped out the power for a week or more were long and loud and desperate. People were crying that they couldn't pay for food or anything else because they didn't have any cash and couldn't get hold of any. In a country as prone to major power cuts caused by climate-change floods and landslides and earthquakes and other natural disasters as this one is, be grateful there is an alternative to electronic transactions. Cash is king and long may it rule!

Absolutely.

I have always had a wad of cash on hand, in mixed small denominations, as part of being prepared to be able to continue to survive as best as possible in the event of an emergency, for as long as whatever supplies remain available in exchange for cash payment.

Rikkitic

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#3465349 27-Feb-2026 09:59

As I recall the phones were also down in some areas and how many ordinary people have UPS for their Internet? Want to buy bread for $50? Set up an account with your baker and draw on that credit to meet your bread needs over time. There will always be a place for cash.

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#3465350 27-Feb-2026 10:04

mudguard: It is probably extremely rare for a mobile network to go down (which is what happened in Napier I thought).

For most celltowers a few hours without power is all it takes. That can improve as solar and battery prices drop with capacity increasing. Telcos will probably just take the opportunity to reduce battery cost ; ).

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mudguard

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#3465355 27-Feb-2026 10:11

Rikkitic:

As I recall the phones were also down in some areas and how many ordinary people have UPS for their Internet? Want to buy bread for $50? Set up an account with your baker and draw on that credit to meet your bread needs over time. There will always be a place for cash.

Going down that rabbit hole, UPS and generators. Where do you draw the line? We've got enough power banks around the house for probably a month of cell phone use. I'm not dismissing cash, but we have this endless drive to get tough on crime etc and the elephant in the room is the number of Rutherfords in circulation.

If we keep cash, then it's reasonable to expect a handling fee at some point.

Rikkitic

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#3465364 27-Feb-2026 10:43

mudguard:

Going down that rabbit hole, UPS and generators. Where do you draw the line? We've got enough power banks around the house for probably a month of cell phone use. I'm not dismissing cash, but we have this endless drive to get tough on crime etc and the elephant in the room is the number of Rutherfords in circulation.

If we keep cash, then it's reasonable to expect a handling fee at some point.

Not everyone who uses cash has criminal intent and that is an insulting implication (not you personally, but in general). If you want to get tough on crime just legalise all drugs and starve the gangs. Our politicians don't have the balls for that. How about a handling fee for electronic transactions? All those computers suck up a lot of electrons. I don't use phones much and I don't have any power bank backup but I normally keep my phone turned off at home so I imagine it would remain useful for a very long time. When the power goes I use my Internet in the same way. Keep it off most of the time, just briefly go on-line a couple times a day to check news and messages. Don't know how long it would last because it has never run out.

Edited to add: I live rural and I have a small generator. I used it once to keep food in the fridge from spoiling but that is not a regular thing.

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Earbanean

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#3465371 27-Feb-2026 10:56

Rikkitic:

As I recall the phones were also down in some areas and how many ordinary people have UPS for their Internet? Want to buy bread for $50? Set up an account with your baker and draw on that credit to meet your bread needs over time. There will always be a place for cash.

Out of interest, how will your baker pay for the flour and pay his staff to make the bread? And how will he do that with no electricity?

mudguard

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#3465373 27-Feb-2026 11:00

Rikkitic:

Not everyone who uses cash has criminal intent and that is an insulting implication (not you personally, but in general). If you want to get tough on crime just legalise all drugs and starve the gangs. Our politicians don't have the balls for that. How about a handling fee for electronic transactions? All those computers suck up a lot of electrons.

Compare the cost of a transaction for those electrons. I bought a book this morning. I don't know where it's coming from (I use a Kindle for fiction), maybe Wellington. It will be here next week. Vs the cost of me driving, getting cash out, driving to another shop, paying, driving back. That shop then pays someone to count the cash, then at some point, drive to a bank. Deposit it and repeat. Or risk storing it.

Again cash is king when it comes to illegal transactions and we ultimately pay the price in convenience by having our own transactions scrutinized. As for legalizing drugs, well it's a bold move. Guess heroin etc would be cheaper!

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