The Reserve Bank of Australia has backed calls to keep cash circulating in the economy, describing bank notes and coins as \u201cvital\u201d for the country\u2019s economic future.<\/p>\n
In a recent payment system board meeting, the RBA board expressed concerns over the \u201congoing challenges\u201d facing the cash distribution system.<\/p>\n
They also reaffirmed that \u201clong term sustainability\u201d of the cash economy was crucial amid concerns over a cashless future. <\/p>\n
\u201cAccess to cash remains vital for many Australians, particularly in regional and remote communities,\u201d the RBA said in a statement. <\/p>\n
\u201cMembers acknowledged the importance of the long-term sustainability of the cash distribution system and expressed support for the proposed regulatory framework for providers of cash distribution services.\u201d <\/p>\n
Additionally, in a move that could affect Aussies\u2019 tap and go routine, the board expressed support for a proposed ban on card surcharges. <\/p>\n
\u201cThe board discussed the evidence and public interest case for amending the regulation of card systems,\u201d the RBA said in a statement. <\/p>\n
This follows the declining use of physical money being a hot topic in recent years, with the rise of digital payment methods resulting in fewer people opting for cash for everyday payments. <\/p>\n
In the past eight years, the number of bank branches in regional parts of the country, including both inner and outer regional areas, have halved \u2014 dropping from 2112 in 2017 to 1334 in 2025. <\/p>\n
Last year, the federal government struck an agreement with the big four banks to keep their regional branches open until at least 2027. <\/p>\n
But there are more than 1.5 million Australians who still use physical money for large portions of their purchases. <\/p>\n