Assistant Governor Karen Silk says Reserve Bank has already received more than 4000 responses on its 'keeping cash local' consultation

Despite saying it has already received more than 4000 responses on its "keeping cash local" consultation, the Reserve Bank is still encouraging the public to have their say.

Consultation on the Reserve Bank's proposal, which initially was due to close today (April 10), had already been extended to July 31.

Now, Assistant Governor Karen Silk says the Reserve Bank wants; "the public to have their say about local access to withdraw cash, deposit cash and swap cash for low-denomination banknotes and coins."

"As part of the consultation, we have received questions about the legal basis for the proposal we are consulting on, and we will release more information about this within two weeks. This may assist people in shaping their feedback on the consultation. We will also provide some Official Information Act responses that will be completed within that timeframe," says Silk.

She says the Reserve Bank is responsible for ensuring cash meets the needs of the public. But in what's perhaps an olive branch to grumpy banks, says the central bank wants to work with them to improve the public's access to cash on a voluntary basis.

"No decisions have been made yet on the proposals outlined in the consultation, and we want to hear a wide range of views about what the minimum services should be locally to withdraw cash, deposit cash, and swap cash free-of-charge, in every district of New Zealand. The public’s views are important and will help inform our approach."

"Our preferred approach is to work with banks to explore how the public’s access to cash services could be improved on a voluntary basis and we welcome responses from the cash industry," Silk says.

The Reserve Bank proposal would enforce a cash service standard on New Zealand banks whereby they would be required to provide cash services across the country for free at an estimated annual cost to the banks of $104 million. Bank lobby group the New Zealand Banking Association has labeled the proposal "extreme" and a "back to the future solution."

The Reserve Bank could, in theory at least, provide cash services to the public itself. It is, after all, the sole supplier of New Zealand bank notes and coins.