The RBA governor’s comments come amid negotiations with cash transport firm Armaguard, which has warned it needs an injection of funds to operate.
Reserve Bank governor Michele Bullock says major banks and other users of banknotes and coins should bear more of the costs of moving it around, saying there are merits to exploring a “co-operative model” for cash distribution in Australia.
“These discussions are ongoing, and industry, regulators and government will need to continue to work together to put in place sustainable arrangements for cash distribution.” Banks are then keen to include supermarkets, Australia Post, and ATM operators in further discussions to determine the right funding model for the long term.
Armaguard’s request for support was made at a meeting initiated by Ms Bullock in October. Her commentary on Tuesday about a potential co-operative model suggests several options, including shared ownership of Armaguard, could be on the table.In some countries, she said, a utility had been formed “in which a number of organisations form a single entity to carry out wholesale cash distribution functions”.
The RBA also wants the industry to maintain “a broad coverage of ATMs at reasonable prices, particularly in regional and remote areas”.“We will continue to engage with industry participants to determine whether any changes are required to the RBA’s regulation of the ATM industry to facilitate this,” Ms Bullock said.In her first speech on the payments sector since her appointment as the central bank’s governor, she said there would be a holistic review of payments regulation next year.
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