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

eracode

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#324088 25-Feb-2026 21:55

Very interesting story out today - NZH report here.

There’s another similar story here - on interest.co.nz

RBNZ wants to compel banks to provide hundreds (or thousands) more fee-free, full-service ATMs and/or multi-bank hubs and/or branches - to support the role of cash in society. Discussion Paper open for six weeks.

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#3464872 25-Feb-2026 22:59

I note due to the lack of banks and bank atms in small towns there are third party atms which charge to withdraw cash. So this move by the RB is a good thing to keep cash being used as it shows that banks are not providing enough outlets.

cddt

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#3465019 26-Feb-2026 06:22

Even in Auckland it's hard to find places to deposit cash now. Every year around CNY I have to drive around to find an ATM where I can deposit cash (from red packets). And every year the location I went to the previous year is no longer an ATM... last time I used ASB's app to find an ATM which took deposits, and despite it having a physical sign saying it took deposits, it did not.

eracode

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#3465026 26-Feb-2026 07:31

For years banks have been watering down the services they provide in branches and particularly with respect to cash. Handling cash in any way is expensive for them and they want to avoid it like a plague. They're not interested in providing real service to customers - they just want to enhance profits for their shareholders. There's been many branch closures and removal (or service reduction) of ATMs as mentioned above.

IMO it will be great to see banks being forced to reverse this cash trend, at their cost, to the benefit of their customers.

Banks are currently under a bit of pressure. There's not just this move by RBNZ - the government is near to announcing special tax rules for banks. The government has been consulting with the RBNZ on this. These rules will try to ensure that banks are paying a fair and equitable amount of tax relative to their size and profitability.

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geek3001

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#3465033 26-Feb-2026 07:50

I would say that regardless of government action, the banks would simply pass on any new or extra cash-handling costs to us the customer, by adjusting things like mortgage rates up and deposit rates down one to five basis points.

I doubt the banks would absorb costs.

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#3465035 26-Feb-2026 07:57

geek3001:

I would say that regardless of government action, the banks would simply pass on any new or extra cash-handling costs to us the customer, by adjusting things like mortgage rates up and deposit rates down one to five basis points.

I doubt the banks would absorb costs.

I'm sure that's right and I understand the RBNZ accepts that too. However RBNZ's view is that the overall cost of this is (1) minuscule compared to banks' profits and (2) worth it compared to the value of an overall improvement in service and the public good.

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geek3001

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#3465039 26-Feb-2026 08:02

That said, I would certainly welcome the mandatory removal of cash counting fees at bank branches, as I was recently charged five dollars when I deposited coins with a total value of less then a hundred dollars.

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#3465049 26-Feb-2026 08:27

geek3001:

That said, I would certainly welcome the mandatory removal of cash counting fees at bank branches, as I was recently charged five dollars when I deposited coins with a total value of less then a hundred dollars.

But that's kind of the problem isn't it. We want these services. But no one wants to pay for it. Probably costs the bank $30 per hour to have the teller there.

I can't wait for cash to vanish to be honest. I saw some stat the other day about how the most widely circulated note is the $50 or $100, I wonder why...

I've mentioned this before but a few years ago we had to deal with my partner's mother's estate which involved lots of rural stuff. $$$ for hay, $$$ for this and that,I've never been to an ATM as often in my life. I was more than happy to pay the day before, have it clear, then come pick up. But no.

Here I am a pleb paying PAYE my whole life and here's a week worth of cash transactions...

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#3465055 26-Feb-2026 08:41

mudguard:

I've mentioned this before but a few years ago we had to deal with my partner's mother's estate which involved lots of rural stuff. $$$ for hay, $$$ for this and that,I've never been to an ATM as often in my life. I was more than happy to pay the day before, have it clear, then come pick up. But no.

Honestly when I'm selling stuff on TM and it's pick up only (which it will be for anything bigger than a shoebox), I'm the same. Pay in cash, or I'm not interested. Bank accounts are admin and I have better things to do. Exception for big ticket items like vehicles.

Certain parts of the economy only accept cash. I find it useful to have.

Mike

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#3465070 26-Feb-2026 09:06

So the government has given up on abolishing payWave surcharges, and is now instead encouraging cash? Is this 1993?

geek3001

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#3465074 26-Feb-2026 09:31

mudguard:

I can't wait for cash to vanish to be honest.

Yes, 99% agree, however there are times when having cash, and being at a place that still accepts cash, is still useful.

I have been caught more than once while in a restaurant, being the one to pay, and found that the only payment card I had on me at the time, was refused (bank error not me), and I couldn't pay. Luckily I had enough cash on me, so I could complete payment.

I won't pay cash if I had to, if the place won't provide a receipt, as I have no proof of payment once I leave.

Call me old fashioned, however I don't feel comfortable leaving any business without some form of payment confirmation. By paying electronically, even without a receipt obtained at time of payment, we at have proof of paying for something by virtue of the record on our bank / credit card account.

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#3465075 26-Feb-2026 09:32

geek3001:

That said, I would certainly welcome the mandatory removal of cash counting fees at bank branches, as I was recently charged five dollars when I deposited coins with a total value of less then a hundred dollars.

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?

Personally I still carry a bit of cash. Although I'll normally use my card, it's good as a backup (the occasional eftpos outage) or for "can you grab me a coffee?" when someone's heading to the cafe.

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geek3001

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#3465084 26-Feb-2026 09:51

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?

They were counted by hand, even though I sorted them into separate bags by denomination, with a total value for each denomination written on each bag. They effectively charged me for checking my own counting. Perhaps they were also ensuring that all coins were NZ, and no foreign coins.

If I recall correctly, they would have processed notes with one of the automated note counting machines for free up to a certain total value.

cddt

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#3465087 26-Feb-2026 10:10

mudguard:

But that's kind of the problem isn't it. We want these services. But no one wants to pay for it. Probably costs the bank $30 per hour to have the teller there.

All of the large banks measure their annual profits in the billions. A few million spent on staffing branches would be a rounding error. Having functioning ATMs even less.

mudguard

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#3465089 26-Feb-2026 10:14

cddt:

mudguard:

But that's kind of the problem isn't it. We want these services. But no one wants to pay for it. Probably costs the bank $30 per hour to have the teller there.

All of the large banks measure their annual profits in the billions. A few million spent on staffing branches would be a rounding error. Having functioning ATMs even less.

That's what happens with big numbers. Big profits. So it can be misleading. ATMS are probably a more expensive undertaking than you think. I vaguely recall having to deal with them from my stint in retail banking. They are not set and forget machines. And that was one accessed from a bank, not a third party one installed on the front of a dairy etc.

They spend a few million restaffing and ultimately the consumer will just pay. Sure bring back cash. Just charge a 5% handling fee like we pay for card transactions.

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#3465096 26-Feb-2026 10:34

cddt:

mudguard:

But that's kind of the problem isn't it. We want these services. But no one wants to pay for it. Probably costs the bank $30 per hour to have the teller there.

All of the large banks measure their annual profits in the billions. A few million spent on staffing branches would be a rounding error. Having functioning ATMs even less.

Heard this on RNZ.

Cost of suggested ATMs = $100m

Annual NZ bank profits - $10B

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

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