Norges Bank, the central bank of Norway, has published the Financial Infrastructure Report 2016. The report confirms the bank’s commitment to satisfy public demand for banknotes and coins and ensure that Money in physical form such as banknotes and coins. More functions as an efficient means of A transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More. It also emphasizes the important contingency role of cash in case of a crisis, as there is no evidence electronic solutions can take over the role of cash in a crisis.
Norway is often tipped as being one of the countries leading the race to become the first cashless society. And several Norwegian banks have been calling to stop using cash. But this is not the position of the central bank.
The report recalls that the value of The value (or number of units) of the banknotes and coins in circulation within an economy. Cash in circulation is included in the M1 monetary aggregate and comprises only the banknotes and coins in circulation outside the Monetary Financial Institutions (MFI), as stated in the consolidated balance sheet of the MFIs, which means that the cash issued and held by the MFIs has been subtracted (“cash reserves”). Cash in circulation does not include the balance of the central bank’s own banknot... More has been stable for several decades at NOK 50 billion (EUR 5.3 billion for a population of 5 million inhabitants). The central bank considers that it is important for consumers to be able to choose between payment solutions because they have different characteristics and because they foster competition and efficiency of retail payments.
In Norway, the new Financial Institutions Act implemented in January 2016, requires banks to enable their customers to deposit and withdraw cash in accordance with their needs and expectations. This does not necessarily have to be done through the branch network but the service must be provided in an appropriate manner.
Cash is also the sole Device, tool, procedure or system used to make a transaction or settle a debt. More which has Money that is legally valid for the payment of debts and must be accepted for that purpose when offered. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered (“tendered”) in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt. More status: this is important when both parties to a transaction fail to agree on an alternative payment option. A new series of banknotes will be introduced from 2017 onwards and will make counterfeiting more difficult.
The report recognizes that the banks’ existing Work performed for the purpose of establishing protocols and procedures to be followed for the occurrence of an incident (theft, fire, natural catastrophe, etc.) or a situation (strike, unexpected demand, etc.), where normal work systems are unable to resolve problems. More for cash distribution may prove insufficient, in case of a crisis. This area will be investigated further in co-operation with the Financial Supervisory Authority.
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