Review of ticket distribution arrangements
The Reserve Bank has completed its review of note distribution agreements. Today it released a findings document outlining various changes to ensure banknote distribution is effective, efficient, sustainable and resilient – now and in the future. This will help ensure Australians continue to have good access to cash.
The review confirmed that the decline in ticket volumes transported and processed has put pressure on the wholesale distribution network. The changes announced today are largely focused on areas where the Reserve Bank has a direct relationship with the industry and are designed to help the industry adapt to the changing use of cash by the public. .
The Reserve Bank will adopt the following set of changes to its arrangements with the industry for the purchase and return of notes and for the quality management of notes in circulation. It will be:
- Improve the transparency of its ticket distribution agreements by replacing existing contracts with a standard, publicly available set of terms and conditions for attendees to access wholesale tickets. An industry forum will be established to provide a channel for communication with key stakeholders regarding these changes.
- Ensure that Australian banknotes in circulation continue to be of good quality, by increasing the maximum annual payment pool available to participants for quality sorting under the Note Quality Reward Scheme (NQRS). This will help the industry to invest in new or improved equipment capable of qualitatively sorting the next generation series of banknotes.
- Increase payment for transporting unsuitable banknotes in recognition of the increased unit cost of transporting banknotes associated with the decline in the use of cash.
Assistant Governor (Corporate Services) Michelle McPhee said, “I would like to thank stakeholders for their constructive engagement with the Bank throughout the Review. We will continue to work closely with them to implement these changes over time. We have chosen a balanced approach that will best support the industry to ensure cash continues to be available for those who wish to use it.
Originally published by the Reserve Bank Of Australia