The South African Reserve Bank’s (SARB) June 2026 position paperSee Banknote paper. More, “Towards a CashMoney in physical form such as banknotes and coins. More Smart Society,” proposes a novel policy framework to ensure the future viability of cash. The SARB’s strategy innovatively treats cash as a system-wide public infrastructure requiring active governance, regulation, and shared infrastructure.
South Africa’s cash ecosystem faces distinct challenges: high costs (R90 billion annually), limited access and financial inclusionA process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products. While it is recognised that not all individuals need or want financial services, the goal of financial inclusion is to remove all barriers, both supply side and demand side. Supply side barriers stem from financial institutions themselves. They often indicate poor financial infrastructure, and include lack of ne... More threats, integrity and security risks, fragmentation, and limited system-wide visibility. The SARB’s strategy is tailored to these realities, focusing on reducing costs, enhancing access, and ensuring ethical and secure cash managementManagement and control of cash in circulation. More. The strategy’s emphasis on shared infrastructure (national cash utility), universal service obligations, and activity-based licensing is designed to create a resilient, inclusive, and competitive cash ecosystem. This approach supports rural and low-income communities that rely heavily on cash, ensuring their participation in the economy and resilience against digital risks.
The Cash Smart Strategy is built on three foundational pillars: affordable cash, accessible cash, and ethical cash. These pillars translate into a comprehensive regulatory framework designed to modernize the cash ecosystem while preserving its critical role in economic participation and financial inclusion.
A centerpiece of the strategy is the creation of a national cash utility—a shared infrastructure jointly owned by banks, retailers, and other stakeholders. This utility aims to forecast cash demand, manage distribution, and reduce costs by replacing indirect subsidies to private cash handlers. The utility will enhance transparency, efficiency, and inclusivity in cash handling, particularly benefiting underserved rural and low-income populations. By consolidating wholesale cash infrastructure, the utility seeks to lower the R90 billion annual cost of cashAlthough banknotes are delivered to the citizens free of charge and their use does not involve a specific fee, costs are generated during their manufacturing, storage and circulation process, which are covered by different social agents (central banks, commercial banks, retailers etc). More in South Africa, a burden currently borne by consumers.
The strategy promotes the expansion of white-label ATMs—non-bank-owned machines that provide essential banking services without requiring physical bank branches. These ATMs enable customers from any bank to withdraw cash at low or zero cost, addressing the decline in traditional bank-owned ATM infrastructure. White-label ATMs are recognized as cost-effective alternatives that enhance financial inclusion, especially in underserved and high-demand areas. The SARB’s framework also includes universal service obligations to prevent “cash deserts,” ensuring equitable access to cash across urban and rural areas.
The proposed regulatory framework is activity-based and proportionate, focusing on functions rather than institutional form. It encompasses banks, cash-in-transit companies, ATM operators, retailers, and other service providers, setting minimum sector-wide standards and licensing requirements. This approach aims to reduce structural inefficiencies, enhance security, and promote ethical stewardship of cash. The framework is designed to address fragmentation and limited system-wide visibility, creating a more resilient and inclusive cash ecosystem.
The Cash Smart Strategy’s integrated framework aims to reduce the annual R90 billion cost of cash, improve financial inclusion, and enhance economic participation. By consolidating wholesale cash infrastructure and expanding white-label ATMs, the strategy promotes affordable and accessible cash, especially in underserved areas. The regulatory framework’s focus on functions rather than institutions ensures a more resilient and secure cash ecosystem. The strategy’s unique approach balances modernization with inclusivity, setting a pioneering model for cash regulation in emerging economies dailyinvestor.com.
The Cash Smart Strategy proposes a novel and comprehensive policy framework tailored to South Africa’s unique economic, social, and technological landscape. By treating cash as a system-wide public infrastructure and proposing integrated solutions such as a national cash utility and white-label ATMs, the strategy addresses core challenges of cost, access, and security. SARB’s strategy balances modernization with inclusivity, ensuring cash remains a trusted, accessible, and resilient component of the national paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More system. This approach is essential for supporting rural and low-income communities and driving long-term economic stability and growth in South Africa’s evolving hybrid payments economy. The strategy’s innovative regulatory framework and shared infrastructure model set a pioneering example for cash regulation in emerging economies.