The designation of cash-in-transit operator Armaguard under Australia's Cash Distribution Framework Act will help provide continued stability to the distribution and availability of cash across the economy, the Australian Banking Association (ABA) said Thursday.
The Reserve Bank of Australia disclosed the designation in a same-day statement, saying the move makes Armaguard a regulated entity that is subject to requirements designed to support a sustainable and efficient cash distribution system.
The designation should provide further certainty for cash distribution amid a decline in cash usage in Australia, the ABA said. It added that banks and retailers have injected over AU$100 million in financial assistance above contractual conditions to Armaguard over the last two years.
Commonwealth Bank of Australia (ASX:CBA), National Australia Bank Limited (ASX:NAB), Westpac Banking (ASX:WBC, NZE:WBC), and ANZ Group Holdings (ASX:ANZ, NZE:ANZ) are among the members of the ABA.