RBA governor Michele Bullock vows to keep cash available for Aussies despite ‘significant challenges’

Reserve Bank governor Michele Bullock has vowed to ensure “cash remains a viable means of payment for as long as Australians want or need to use it,” despite “significant challenges”, including the viability of Australia’s main money mover Armaguard. Ongoing concerns for the billionaire Fox family’s cash transit outfit has spurred two rounds of emergency funding totalling $75.5m from retail giants and the big four banks. During a grilling at a parliamentary economics standing committee on Monday, Ms Bullock said plummeting levels of cash use had “made it more costly to store, process and distribute cash”. “These issues are most pressing for rural and regional areas where these services are most expensive,” she told politicians in Canberra. “As you know, the logistics of moving cash to bank branches, ATMs and retailers is undertaken by cash-in-transit companies and the industry needs to work together towards a more sustainable distribution system.” Ms Bullock said consultations to create a framework for cash distribution, which would guarantee the circulation of notes and coins even in the event of Armaguard’s collapse, were ongoing, with the Council of Financial Regulators set to present options to the government “in the near future”. “This would establish essential guardrails to support resilience and fair access to critical cash distribution services,” she said She said the RBA was also reviewing its incentives that encourage banks to hold cash so they were “fit for purpose” and adapted to “changes in the industry”. “We continue to work with industry participants to develop solutions that will best meet the needs of the community,” she said. However Ms Bullock said ensuring the continued availability of physical money was critical for the 1.5 million Australians who “depend on it”, like vulnerable groups and Australians in regional areas. “Cash remains a critical part of a resilient and inclusive payments system for all Australians,” she told the committee. “The RBA is committed to supporting the Australian government’s policy objective to ensure cash remains a viable means of payment for as long as Australians want or need to use it.”