NSW Are banks and financial institutions legally required to provide access to physical currency.

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redmonds

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2 May 2022
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I wasn't sure where to post this so please move if this is the wrong Forum.

I wanted to know if Australian Banks have a legal requirement to provide access to physical legal currency?

This comes about because one of the banks I use for personal and business has basically refused to stock and provide change (mainly small amounts of coin) from 1 of their branches located near our business. Another Bank that we also use for business hasn't refused but makes it so painful and time consuming to get change that I consider it constructive refusal of service.

As a consumer and business we don't have the ability to obtain phyiscal money from the Reserve Bank of Australia. Our only option to get money is from a bank. I would think that it should be a legal requirement for banks to act as the conduit between end users and the Reserve Bank and therefor provide unfettered access to the legal currency of Australia.

This is not meant to be a discussion on the pros/cons/inevitablity of a cashless society.

Thanks for any input and advice.
 

Tim W

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28 April 2014
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I wanted to know if Australian Banks have a legal requirement to provide access to physical legal currency?
No.
Our only option to get money is from a bank.
What about cash withdrawals at an LPO?
...it should be a legal requirement for banks to act as the conduit between end users and the Reserve Bank and therefor provide unfettered access to the legal currency of Australia.
Well, it isn't.
Thanks for any input and advice.
Make an appointment with a manager-level human being in a retail branch, and discuss your needs.
And be prepared to walk if they can't help you.

It all rather depends on how much cash (in all of quantity, dollar value, and mix of denominations)
that you're talking about.
 

redmonds

Member
2 May 2022
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Thanks Tim I appreciate the feedback.

The bank I prefer to use is, or used to be, a credit union. They a re now a mutual Bank and have started acting very Bank like. I have been with them in the previous names for almost 30 years. Just recently moved one of our business accounts to them. Unfortnately I am no longer happy with them and cannot recommend then to anyone.

We are talking such small amounts of currency, ad-hoc. at most would be 200 in coin and about 600 in notes. Usually it is about $90 in coin.

I have tried to escalate the issue without luck. In the past a branch manager had agreed to keep the small amount of coin in the safe for us. But when he was replaced it got taken back to where it goes.

In regards to the LPO recommendation. I know that it is possible to get cash from the LPO or even many retail outlets. However that is a convenience they offer to consumers and not their core business. They certainly are unlikely to be able to provide regular change.

I guess it is a very basic question that if you cannot be guaranteed of getting the currency you need from a bank, your bank, then where can you be guaranteed of getting in.
 

Tim W

Lawyer
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28 April 2014
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I understand about mutual banks - I have been with one (yes, a converted credit union) for almost 30 years myself.
However, my business banking is, indeed, elsewhere.
...a convenience they offer to consumers and not their core business.
Well, that would seem to be the scale at which you are operating....?
They certainly are unlikely to be able to provide regular change.
You said "ad hoc", not "regular". Which is it?
They could. But you'd need to set it up in advance, and probably pay a fee for it.
I guess it is a very basic question that if you cannot be guaranteed of getting the currency you need from a bank, your bank, then where can you be guaranteed of getting in.
The way your posts currently read, for you it's "want", not "need".
What you actually mean here is
"...very small amounts of cash, on an ad hoc basis, at someone else's expense..."

Given how small the amount you are talking about is, then perhaps one regular, larger, cash transaction a week/ month/ quarter would suit you better.