South Africa's Reserve Bank Reportedly Launches Sweeping Modernization of National Cash System
South Africa's Reserve Bank Reportedly Launches Sweeping Modernization of National Cash System
“Cash Smart Strategy” aims to make physical cash more accessible and affordable—especially for low-income and rural communities—by reducing the burden of handling and securing it, US media reported, citing SARB officials.
Cash still makes up about two-thirds of all transactions, with the high costs of managing it currently falling largely on consumers.
Key elements of the plan include:
🟠A New Cash Utility: Creating a jointly owned cash-management company to model demand and distribute physical money efficiently, eliminating current subsidies to private cash handlers.
🟠White-Label ATMs: Converting bank-owned ATMs into a shared, interoperable network where any customer can withdraw cash with little to no fee.
🟠Expanded Oversight: Introducing regulations and possible licensing for cash-in-transit companies and retailers to improve security and efficiency.
The bank estimates that, as payment digitalization grows to the level seen in other developing countries such as India and Brazil, cash usage could decline by 30–40%.
The new strategy, which could take up to three years to implement, aims to protect the role of physical money for vulnerable populations.
The plan was reportedly presented to banks this month, with industry consultations starting in January.
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