When a natural disaster strikes, banks are well aware that access to hard cashMoney in physical form such as banknotes and coins. More is crucial. Indeed, as Hurricane Harvey swept through Texas, commercial banks announced that they will temporarily remove any ATM fees to make access to cash easier for victims of the storm. Furthermore, many banks went as far as waiving all other fees, including late mortgage payments, as a result of the flooding. And finally, the Federal Reserve encouraged local branches to keep the cash and reuse it instead of sending currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More back to the Fed’s Houston branch.
Chief financial analyst at Bankrate.com, Greg McBride, stated that these measures are typically carried out in areas affected by natural disasters because cash is the only paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More tool that can secure people’s “food, medical supplies and other necessities” when the power is out.
The former Dallas Federal Reserve Preseident Richard Fisher explained that the Dallas vaultSafe; strong room. A place reinforced with special security measures where high-value objects and documents are safeguarded. In central banks, banknotes and other objects are safeguarded in vaults. More is prepared to supply Harvey whatever cash demands are needed, which are expected to increase as the labour day holiday approaches. “It’s about getting that lifeblood of cash into the economy, so you can fill ATMs and people can get to them so they can have it,”
Mobile bank branches are expected to be set up to provide essential services to local residents including processing and receiving insurance checks to repair damaged homes.
Similarly, after the series of earthquakes that struck Italy, an easy-to-transport and highly efficient mobile cash centre was designed to respond to basic banking needs of disaster-struck regions.