RBA concerned as cash access shrinks

A growing number of Australians have little or no access to physical cash in their communities, as banks continue shutting branches and ATMs or selling them to private operators that charge high fees.

The Reserve Bank of Australia (RBA) is particularly concerned about this trend, as around 1.5 million adults—mainly older Australians and low-income earners—still rely on cash as their primary payment method.

New RBA research highlights that around 180 of Australia’s 2,400 communities have no access to cash through banks, ATMs, Australia Post, or cash-out services at supermarkets. Another 120 communities have just one access point.

Researchers warn that as cash points disappear, people may be forced to switch to alternatives like Bank@Post, which may not offer the same services or may charge extra fees. This is particularly challenging for those in remote areas with limited banking options.

To address the issue, the Federal Government will require businesses to accept cash for essential goods starting in 2026, with the Treasury currently consulting on how best to implement this policy.

The decline in cash access follows a broader shift in payment habits. Cash transactions fell from 70% in 2007 to just 13% in 2022, with analysts expecting an even lower figure today. Meanwhile, ATMs have dropped from 32,000 in 2017 to 23,693 as of late 2023, while Eftpos machines have risen to over 1 million.

Adding to the problem, 230 bank branches closed in the year to June 2024, mostly in major cities but with more than a quarter of closures affecting regional and remote areas.

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