South Africa is preparing to overhaul its ATM network, with the South African Reserve Bank (SARB) proposing a shared system that could make small cash withdrawals, deposits and balance enquiries free below a specified transaction limit.
The plan would move the country’s more than 30,000 automated teller machines (ATMs) towards a shared, unbranded network that customers of different banks could use. Instead of each bank operating machines exclusively under its own brand, the proposed system would treat ATM access as part of a wider national cash infrastructure.
The Reserve Bank says the goal is to reduce the cost of handling cash, improve access in underserved communities and prevent physical money from becoming too expensive or difficult to obtain.
The proposed reform is part of its Cash Smart Strategy. It does not mean South Africa is abandoning cash. Rather, the central bank wants to make the system supporting cash more efficient as digital payments expand.
A pilot for white-label ATMs is planned for January 2027. The Reserve Bank also wants to establish a national cash utility by March 2027.
What the South African Reserve Bank Is Planning
The Reserve Bank wants banks to convert their branded ATMs into machines that can serve customers across participating financial institutions.
Under the proposed arrangement, a customer would not necessarily need to find an ATM carrying their own bank’s name to access cash. The shared system is intended to provide more consistent access while reducing duplicated operating costs.
Pradeep Maharaj, the Reserve Bank’s executive director responsible for its Payments Ecosystem Modernisation programme, said the central bank was asking banks to white-label their ATMs.
The proposal is still being discussed with banks, which have submitted alternative models. The Reserve Bank plans to respond to those proposals in November 2026 before the implementation model is finalised.
The intended system would support three basic services:
- Cash withdrawals.
- Cash deposits.
- Balance enquiries.
The central bank also wants transactions below a yet-to-be-announced limit to be free. The amount that would qualify for free service has not been finalised, so customers should not assume existing ATM fees have already changed.
How a Shared ATM Network Would Work
At present, banks and independent ATM operators maintain separate machines and supporting infrastructure. Each network requires maintenance, security, cash replenishment and technical support.
The proposed shared system would reduce the need for every institution to maintain a separate network for the same basic cash services.
A white-label ATM would be part of a shared national network rather than being branded exclusively as one bank’s machine. The proposed National Cash Utility would own or manage the shared infrastructure, while customers of different banks could access the services provided.
The central bank’s aim is to coordinate ATM access with the wider system used to store, transport, process and distribute physical money.
For customers, the experience should remain familiar. They would use their bank cards or another supported method, follow the ATM instructions and complete the transaction. The main difference would be the network behind the machine and the proposed fee arrangements.
The exact responsibilities of the utility, banks and ATM operators will depend on the final framework.
Why South Africa Wants Small ATM Transactions to Be Free
ATM charges are one part of the broader cost of using cash. Consumers may also spend money travelling to an ATM, lose time reaching a working machine or face higher costs when their own bank’s machines are unavailable.
The Reserve Bank wants to reduce these expenses by improving access and eliminating unnecessary duplication.
Maharaj has also criticised charges imposed when customers cannot use their own bank’s ATM and have to withdraw from another machine. Such fees can penalise customers for a service problem they did not cause.
Under the proposed model, small transactions would be free below a threshold that is yet to be announced. This could make routine cash access more affordable, particularly for people who make frequent, relatively small withdrawals.
However, the proposal does not establish that every transaction of every size will be free. The final threshold, fee rules and treatment of other services remain to be determined.
The Cost of Cash Is a Major Reason for the Reform
The Reserve Bank’s plans come as South Africa faces substantial costs associated with maintaining its cash infrastructure.
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The central bank’s Cost of Cash Research Study, which uses 2024 as its base year, found that cash accounted for approximately 56% of consumer transactions by volume. Digital payment options have expanded, but cash remains important for households and businesses across both the formal and informal economies.
The Reserve Bank has also highlighted the large amount of money that must be stored, transported, secured and distributed throughout the country.
| Indicator | Reported figure |
|---|---|
| ATMs nationwide | More than 30,000 |
| Cash in circulation | Approximately R180 billion |
| Share of consumer transactions using cash | About 56% by volume |
| Estimated annual economic cost of cash | R88.5 billion |
| Estimated cost as a share of GDP | About 1.2% |
The R88.5 billion estimate covers the wider economic cost of cash, not simply ATM charges or the direct expenses paid by banks. It includes costs associated with distributing, accessing, accepting and using physical money.
The Reserve Bank’s research is available through its Cost of Cash Research Study.
Why Cash Is Becoming More Expensive to Manage
Operating a cash network involves substantial fixed costs. ATMs require servicing, cash centres need secure facilities, and vehicles must transport banknotes between locations.
These expenses do not automatically fall when customers make fewer cash transactions.
If transaction volumes decline while the cost of maintaining machines, vehicles and secure facilities remains high, the cost per transaction can increase. Banks and ATM operators may respond by raising fees or removing machines from locations that are expensive to serve.
This creates a particular problem for rural communities, townships and low-income areas, where cash may remain essential and alternative services may be limited.
A shared network could spread infrastructure costs across more users and reduce repeated journeys by cash-in-transit vehicles. The central bank also wants to improve visibility over where cash is available and where additional supplies are needed.
The aim is to lower the overall cost of cash while preserving reliable access for people who still depend on it.
Why Rural and Low-Income Communities Matter
The number of ATMs in a country does not necessarily show whether cash is accessible to everyone.
Machines may be concentrated in commercial districts and wealthier neighbourhoods, while residents in less profitable areas face longer journeys to withdraw money.
The Reserve Bank has identified unequal access as a major concern. Its strategy prioritises rural towns, townships and informal settlements, where people may have fewer convenient alternatives to physical cash.
The cost of obtaining cash can also take up a larger share of a low-income household’s budget. Transport expenses, withdrawal fees and time spent travelling can make a small cash withdrawal disproportionately costly.
A shared network could help by allowing machines to be placed according to public access needs rather than only the commercial priorities of individual banks.
However, the success of the plan will depend on practical details such as machine locations, cash availability, uptime, security and the fees ultimately charged.
South Africa’s Cash Infrastructure Could Be Consolidated
The proposed reform extends beyond the ATMs themselves. The Reserve Bank wants to consolidate parts of the wholesale cash infrastructure, including the facilities used to store, process and distribute banknotes.
South Africa has cash centres operated by the Reserve Bank and industry participants, including companies such as SBV and Fidelity.
According to reporting on the plan, the country has approximately 109 cash centres, although the central bank believes it may need only around 40 to 50 in a more efficient system.
The proposed National Cash Utility would help coordinate this infrastructure and reduce unnecessary duplication.
Instead of separate institutions maintaining overlapping facilities and transport arrangements, the system could operate through a more coordinated network.
The transition could involve the transfer of assets or other arrangements with existing operators. The Reserve Bank has indicated that compensation or ownership interests in the utility could be considered where assets are taken over.
The final ownership structure, compensation arrangements and responsibilities of the participating companies have not yet been fully settled.
What Is the National Cash Utility?
The National Cash Utility is a proposed central structure for managing key parts of South Africa’s cash infrastructure.
Its purpose would be to improve the way cash is stored, processed, transported and made available to the public.
The utility is expected to help reduce costs by coordinating cash distribution, limiting unnecessary movements of banknotes, improving the use of facilities and reducing duplication in ATM deployment and maintenance.
It would also support the shared ATM network, providing a structure through which customers of different banks could access cash.
The Reserve Bank wants the utility established by March 2027. The plan is for cash infrastructure to be brought into the new arrangement in stages, with industry-operated cash centres expected to begin transitioning during 2027.
The exact structure will depend on the outcome of discussions with industry participants and the final implementation arrangements.
When Will the New ATM System Begin?
The Reserve Bank has outlined several milestones, although the timetable for the wider rollout has not been fully settled.
| Period | Planned development |
|---|---|
| November 2026 | Reserve Bank responds to alternative ATM models submitted by banks |
| January 2027 | Pilot of white-label ATMs is planned to begin |
| March 2027 | Target date for establishing the National Cash Utility |
| Mid-2027 | Planned start of bringing industry cash centres into the new structure |
| End of 2027 | Earlier reporting referred to an initial batch of white-label ATMs |
| 2028 | Reporting published on October 19 indicates the broader rollout could begin in 2028 |
The distinction between a pilot and a national rollout is important. A pilot allows the Reserve Bank and participating institutions to test the model before expanding it.
Earlier reporting described a first batch of white-label ATMs by the end of 2027. However, a report published on October 19 said the Reserve Bank wanted to finalise deployment during 2027, with the broader rollout starting in 2028.
The final schedule may change as the central bank works through the proposals submitted by banks. No specific pilot locations or final national deployment schedule have been confirmed in the reports cited here.
What the Plan Means for Banks
The proposed network could change how banks manage their ATM businesses.
Banks currently use their own branded machines to provide customers with cash access and other services. The machines are also part of the relationship between a bank and its customers, particularly when access to a bank’s own ATM costs less than using another provider’s machine.
Moving to a shared network would require banks to reconsider how they manage ATM infrastructure, pricing and service delivery.
Sharing infrastructure could reduce duplicated costs, but banks would need to agree on how the network is funded and operated. They would also need arrangements for technical support, customer complaints, transaction disputes, fraud prevention and cash replenishment.
The Reserve Bank’s proposal is not yet a final operating framework. Banks have submitted alternative models, and discussions are expected to continue before a definitive structure is agreed.
Will South Africa Have Fewer ATMs?
The Reserve Bank has not presented the proposal simply as a plan to remove machines. Its stated aim is to improve access while reducing duplicated or inefficient infrastructure.
There may be fewer machines in locations where several ATMs serve overlapping purposes. At the same time, the shared network could support access points in areas where banks have been reluctant to operate machines independently.
The central bank’s Cash Smart Strategy says access should be protected, especially in underserved communities. Its Cash Smart Strategy and frequently asked questions explain the intended role of white-label ATMs and other cash-access channels.
The number of machines alone will not determine whether the reform succeeds. Customers will also need reliable access, sufficient cash at the machines, convenient locations and transparent fees.
What Customers Should Expect
South Africans should not expect all ATM charges to disappear immediately.
The proposed pilot is scheduled for January 2027, and the broader rollout will depend on the final framework and implementation timetable.
Until the new arrangements take effect, customers should continue checking the fees and conditions attached to their existing bank accounts and ATM transactions.
If the model proceeds as intended, customers could eventually have access to a wider network of machines that serve people across different banks. Small transactions may become free below the threshold set under the final policy.
The actual benefits will depend on how the network is funded, which services each machine supports, and how effectively the system maintains cash availability.
What Happens Next?
The next major steps are the Reserve Bank’s planned response to alternative models submitted by banks in November 2026, the proposed ATM pilot in January 2027 and the establishment of the National Cash Utility by March 2027.
The central bank will also need to finalise the rules governing ATM access, free transactions, security, service standards and the transfer of cash infrastructure into the new system.
South Africa’s proposal reflects a wider challenge for the banking industry: digital payments are growing, but cash remains important to millions of consumers and businesses.
Rather than trying to eliminate physical money, the Reserve Bank wants to make the system behind it less expensive and more accessible. Whether the plan delivers lower costs and better service will depend on how the shared network is implemented and how banks and other industry participants adapt.