South African Reserve Bank plans shared ATM network

The South African Reserve Bank (SARB) is advancing a strategy to modernize the nation's cash and payment infrastructure. A central component of this plan involves creating a shared, “white-labeled” ATM network. Under this proposal, participating banks would de-brand their machines to allow customers from different institutions to use them for withdrawals, deposits, and balance inquiries. This initiative aims to reduce infrastructure duplication and lower the costs associated with cash distribution, particularly to improve access in rural and low-income communities.

To manage this transition, the central bank intends to establish a National Cash Utility (NCU) by March 2027. The NCU is expected to be wholly owned by the Reserve Bank and will oversee the reorganization of physical currency handling, including the management of cash centers and the proposed ATM network.

This move follows recent regulatory shifts in the electronic payment sector. The SARB recently ended 27 years of industry self-regulation by splitting the functions of the Payments Association of South Africa (PASA) and acquiring a 50% stake in PayInc, the former BankservAfrica. These changes come as cash still accounts for approximately 56% of consumer transactions by volume in South Africa.