Reserve Bank's Cash Service Site Proposal Sparks Skepticism

The Reserve Bank's Keeping Cash Local consultation process has come to an end, with submissions closing last week. The proposal was unusual and sparked skepticism among experts.

At the heart of the plan was a requirement for at least 95% of people in towns or cities with over 1,000 residents to be within 3km of a cash service site. This condition has been met with criticism from Dr Eric Crampton, chief economist at the New Zealand Initiative.

Crampton wonders how the consultation document made it out the door given its unusual nature. He questions whether the proposal was viable in the first place.