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Cash Covenant keeps cash available and within reach for the longer term

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On 8 April 2022, the Minister of Finance submitted the Cash Covenant to the House of Representatives . Twenty-three organisations closely involved in Dutch payments signed it. The agreements are intended to ensure that cash continues to function effectively as a means of payment at the point of sale, even as electronic payments become increasingly common.

Stacked euro coins stand on a table with euro banknotes in the background, symbolizing cash, value and money flows.

The Cash Covenant was signed by the major banks, the Dutch Payments Association, representatives of consumers, retailers, the hospitality sector and petrol stations, cash service providers and De Nederlandsche Bank (DNB). It applies for five years. Under DNB’s coordination , the 23 signatories agreed arrangements to ensure that cash can continue to function effectively.

Consumer use of cash is declining sharply, causing the cost per transaction to rise quickly. The agreements will keep cash readily available and within reach for everyone who needs it. Gijs Boudewijn, acting managing director of the Dutch Payments Association, said: “It is very important that DNB and the Ministry of Finance soon commission a study into how cash services should be funded in the longer term. That is unique in Europe.”

To make room for the study, the banks decided to freeze their business and retail fees for depositing and withdrawing cash for just over a year. Boudewijn said: “It is important to establish the extent of the ever-rising costs that our members face in meeting their gatekeeper obligations, including customer due diligence and anti-money laundering measures. Business banking customers in particular are raising concerns, and we need to consider how those costs can be kept manageable.”

October 2022 update

The following banks have declared, by means of a statement of conformity, that they comply with the obligations under Article 4 of the Cash Covenant:

August 2023 update

On 19 July 2023, DNB drew up an addendum to the Cash Covenant. The addendum contains arrangements for a ‘freeze with the option of indexation’.

Free ‘Cash also welcome’ stickers now available

Free new stickers are available from the PIN.nl webshop to show customers that cash is also accepted. Several versions are available, allowing businesses to choose the sticker that best suits them. All versions are included on a single sheet.

Sheet of ‘Contant geld ook welkom’ stickers indicating that cash is accepted.

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