The Reserve Bank of New Zealand launched its Keeping Cash Local consultation without confirmed statutory powers to impose mandatory cash access standards on banks.
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The Reserve Bank of New Zealand opened its Keeping Cash Local consultation on 25 February 2026. The proposal sought a mandatory cash services standard requiring banks to maintain minimum access points.
Urban areas with populations over 1,000 would need 95 percent of residents within a 3km walking distance of cash services. Rural settlements would require services within 15km or 30km driving distances.
Official Information Act responses showed the Reserve Bank had sought new regulation-making powers for cash access as early as 2019. Those powers were not included in the Reserve Bank Act 2021 or the Deposit Takers Act 2023.
Finance Minister Nicola Willis stated that under some circumstances the measures under consultation would require specific legislation or regulation. Treasury and Crown Law had not advised on the statutory basis before the consultation launched.
New Zealand ATM Numbers
National ATM count declined sharply between 2021 and 2024.
Source: FRED/IMF data via RBNZ references
RBNZ cited a roughly 40 percent reduction in bank branches over the prior decade. National ATM numbers fell from 2,228 in 2021 to 1,543 by 2024.
New Zealand ATM numbers, 2021–2024
The 31% fall in ATM numbers between 2021 and 2024 formed the statistical backdrop to RBNZ's consultation, though the Bank's proposed remedy ultimately lacked a clear legislative footing.
Source: FRED / IMF; NZBA Banking Industry Facts & Figures 2024
The consultation received nearly 6,000 responses before closing on 31 July 2026. Analysis is expected in late September 2026.
By mid-July 2026 the New Zealand Banking Association announced that the Reserve Bank had moved away from the mandatory standard. The parties would instead form a voluntary cash-access working group.
NZBA welcomed the collaborative approach and stated there was no longer a need for a formal submission on the original proposal.
Dr Eric Crampton of the New Zealand Initiative argued that internal documents demonstrated Reserve Bank officials knew compulsory rural cash outlets would require legislative backing the Bank did not possess.
The episode highlights limits on regulatory consultation processes. Future Reserve Bank initiatives on bank conduct or access standards may face similar scrutiny over statutory authority.
The shift to a voluntary working group could set precedents for how the central bank engages with the banking sector on resilience and consumer outcomes.
