South African Reserve Bank outlines Cash Smart Strategy and proposed regulatory framework for cash

The South African Reserve Bank has published a position paper on the future of cash in South Africa, setting out its Cash Smart Strategy and the policy logic for a new regulatory framework for the cash ecosystem. The paper treats cash as critical public infrastructure within a hybrid payments economy rather than a declining legacy instrument, and frames reform around three objectives: making cash more affordable, preserving broad and equitable access, and strengthening ethical, secure and accountable stewardship of physical currency. The main reform package is an ecosystem-wide framework that would apply to banks and non-bank participants that materially influence cash outcomes, including cash-in-transit operators, ATM deployers, retailers and cash-to-digital networks. The South African Reserve Bank says its 2025 Cost of Cash Study found annual cash costs of about ZAR 90 billion, largely borne by consumers through fees, travel time, queuing and crime-related losses. To address this, the strategy proposes a national cash utility to consolidate and optimize wholesale cash infrastructure and systems, wider use of white-label ATMs, licensing for significant cash-related activities, universal service obligations to limit the emergence of cash deserts, common security and authentication standards, and an Industry Cash Rulebook to standardize operations and give the central bank better system-wide visibility. The paper does not create binding obligations. Instead, it sets out the basis for later detailed regulations, licensing frameworks, delegation arrangements, pricing methodologies and operational standards that the South African Reserve Bank says will be developed through formal consultation.