Banks welcome progress to establish regulatory framework for cash distribution

The ABA welcomes the release today of Treasury’s exposure draft legislation to regulate Australia’s cash-in-transit sector.

ABA CEO Simon Birmingham said this regulatory framework was an essential piece in the puzzle of ensuring cash remains available to Australians who still use it.

“This is a welcome step and will be an important safety net in shoring up the ongoing distribution and availability of cash across the economy,” ABA CEO Simon Birmingham said.

“Banks and retailers have played a critical role in ensuring the short-term viability of the cash-in-transit sector having injected over $100 million of emergency funding above their normal payments into Armaguard to keep cash moving around the country.

“Australia’s banks are committed to providing Australians with choice in banking and payments, which is why they continue to invest in the availability and transportation of cash alongside safe, modern and real-time digital banking options.

“Industry continues to work with Armaguard on the timely establishment of an independent pricing mechanism, however ongoing uncertainty in the future cash environment highlights the importance of having a regulatory safeguard.

“The industry will engage closely and constructively with Government, Treasury and the regulators to progress this important legislative safety net.”