Riksbank Urges Banks to Guarantee Cash Access

Sweden's central bank, the Riksbank, is urging banks to take greater responsibility for providing businesses with access to cash services, threatening regulatory action if necessary, reports Finextra. In a written submission to the Ministry of Finance's inquiry on cash usage, the Riksbank emphasized the need for regulation to ensure that businesses legally required to accept cash have access to services for managing daily takings and petty cash.

While Sweden is renowned for being nearly cashless, many banks have largely stopped offering cash services to businesses. Currently, such services are mainly provided by the cash-in-transit company Loomis AB on a purely commercial basis. However, the Riksbank argues that banks must step up to guarantee long-term access to cash services, which are essential as a safeguard in case digital payment systems fail.

Some banks are already legally required to offer businesses and public authorities adequate cash deposit services. But the Riksbank believes these requirements must be strengthened and clarified, as the current services are insufficient. Banks often rely on deposit machines, which the central bank says have limits too low to meet the needs of many businesses. Additionally, access to petty cash has significantly declined as more banks have closed their manual cash services.

Christina Wejshammar, head of the Riksbank’s payments department, stated that the proposed measures are crucial not only for those who need to use cash but also for bolstering the nation’s payment readiness in emergencies. She warned that businesses accepting cash may struggle to do so without adequate services and added that if essential goods providers are required to accept cash, cash-handling services will need to be maintained nationwide. This would help ensure the cash system operates smoothly during both normal times and crises.