![Cash is still king in the country, but the problem is keeping the flow of notes and coins continuing despite the distances involved. File picture. Cash is still king in the country, but the problem is keeping the flow of notes and coins continuing despite the distances involved. File picture.](/images/transform/v1/crop/frm/39XqhrgY6riNnQBs6VEtc8R/82105c0a-b5ae-49f1-851b-06490177a9e7.jpg/r459_43_2756_1525_w1200_h678_fmax.jpg)
Armaguard has been given a lifeline to keep delivering cash to the bush.
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The money distribution company has secured a $50 million deal with the big banks, supermarkets and major retailers to keep the money flowing for at least another year.
What happens after that appears to be in the hands of the banks through the Australian Banking Association.
Regional Australians rely on cash payments more than those in the city.
The financially struggling Armaguard says long travelling distances involved in keeping the cash pipeline open to the country have cost it dearly.
Armaguard told the just completed Senate inquiry into banking services it was "not in the business of providing services to regional and remote Australia as a public service".
The ongoing closure of bank branches across rural and regional Australia has caused community upset but less well known is the security companies who move the cash into the country are fast losing their own money.
The Australian Competition and Consumer Commission was forced to step to keep the money flowing.
"... it can be particularly difficult to access cash in remote and regional areas where consumers are more likely to be high cash users, bank branches are limited and often the only access is through non-bank sources including Australia Post and retailers," ACCC chair Gina Cass-Gottlieb said.
The Reserve Bank sells banknotes and coins to the banks who are responsible for its distribution around Australia.
Cash-in-transit services involve cash transport, management and processing services that maintain the distribution of cash to banks, retailers and independent ATM operators.
An agreement was made on the weekend for the Armaguard lifeline to be funded by the big four banks, Coles, Woolworths, Bunnings and Australia Post.
The ACCC still needs to approve the deal.
![There are fears country people would be more exposed to thieves if they were forced to store more cash at home. File picture. There are fears country people would be more exposed to thieves if they were forced to store more cash at home. File picture.](/images/transform/v1/crop/frm/39XqhrgY6riNnQBs6VEtc8R/93f13863-835b-4a2a-a64e-04a67c17cf7b.jpg/r0_0_1417_926_w1200_h678_fmax.jpg)
The funding will reportedly be contingent on Armaguard reaching "efficiency and restructuring milestones to put it on more sustainable financial footing".
According to reports, Armaguard and the ABA will develop future solutions after the current deal finishes.
Reducing delivery frequency, is one issue on the table.
The banks will also continue to explore other ownership structures, including creating an industry co-operative.
The $50 million will reportedly be paid in instalments subject to performance hurdles.
The recent Senate inquiry into bank branch closures was told cash was still king in the country.
The Reserve Bank said cash use had been in decline for many years and had halved over the three years to 2022.
"Despite the decline, there are still consumers considered 'high-cash users' who use cash for more than 80 per cent of transactions. Most of these users are in regional areas," the Senate inquiry found.
At the same time, there has been an almost 90 per cent fall in the use of cheques in the past decade.
The Senate committee reported: "The committee heard throughout the inquiry that access to cash in regional and remote communities needs to be protected.
A Senate committee had asked the government adopt a policy recognising access to financial services as an essential service.
"Cash is essential to the day-to-day lives of people living in these areas," the committee found.
"The committee was told by witnesses 'if banks can't or won't provide a mechanism for cash circulation in regional communities, then the government needs to step in and provide a suitable alternative mechanism'."
The committee recommended the government adopt a policy recognising access to financial services as an essential service.
The committee was told there are many rural communities where cash remains necessary and is preferred for a variety of reasons.
Many are impacted by digital connectivity issues in the switch to online banking, many lack digital literacy, and also suffer cultural, linguistic or physical barriers to online banking.
As well, community groups, clubs, school canteens, markets and sporting events often rely on cash, including coins.
This increases security risks for businesses and individuals who are keeping larger amounts of cash on hand which could potentially attract thieves.
Community groups also face difficulties in accessing and banking cash used for events such as football matches, agricultural shows, school fetes, and similar community activities which require a cash float.