Dutch Cash Covenant Established
Jun 8, 2022
Major organisations across the Netherlands have signed an agreement with the nation’s Central Bank to safeguard availability and accessibility of cash.
A total of 23 organisations—spanning banks, petrol stations, the Dutch Payments Association and groups representing consumers, retailers and the hospitality industry—have signed up to the Cash Covenant with the goal of ensuring cash continues to be available to and usable by all amid a rise in electronic payments.
The five-year covenant covers topics including the number of ATMs nationwide, fallback options for e-payments and keeping payments inclusive. Banks have agreed to maintain current cash service fees until mid-2023, guaranteeing no increases.
In its announcement of the Covenant, De Nederlansche Bank (DNB) says cash is a public good, and it is in the public interest that it remains fully accessible and usable.
If cash were to disappear, problems could occur in the event of disruptions in electronic payments, since cash functions as a fallback option in such cases.
DNB has also launched a new study to explore how best to safeguard cash in service of public interest over the longer term. Aiming for completion within ten months, the study will identify options that will then be presented to the Minister of Finance, who will in turn advise the House of Representatives on necessary next steps.