Pres EPC EPC Cash WG

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1 Pres EPC EPC Cash WG COGEPS 2-3 April 2012 Leonor Machado

2 A. Standardization for cash boxes & cash protection systems B. Balance Sheet Relief mechanisms C. NCB cash service convergence 2. Single Euro Cash Area (SECA) Framework 3. Upcoming ECUG meeting on 31 May Overview 2

3 A. Standardization for cash boxes & cash protection systems Scope: Logistical harmonization of the end-to-end cash cycle achievable through Standard-size compatible cassettes/cases for ATM replenishment, cash transport and cash delivery over-the-counter (OTC) End-to-end interoperability of cash protection systems between the cassettes/cases used throughout the entire cash cycle Identified initial EPC action points: Prepare business case and risk analysis from the perspective of EPC for such wide standardization Define together with the other stakeholders minimum set of cash cassette/case standards, the related ownership for these standards and the long-term migration plan Status: Diverging views noted on cassette quality and standardization issues in ad-hoc meetings with Cash-In-Transit (CIT) companies and cash protection system manufacturers end 2011 Therefore concrete community data on current ATM cassette volume and quality issues were needed from WG members Collected responses on ATM cassette volume & quality issues currently under review => final conclusions will determine most feasible steps to pursue the aimed logistical harmonization 3

4 B. Balance Sheet Relief mechanisms Balance Sheet Relief (BSR) mechanisms essential in deploying large scale cash recirculation outside NCB to optimize the cash cycle Benefits of BSR: Making cash distribution more efficient while mitigating financial impact of surplus cash held by banks which is not returned to the NCB Overall feedback from ECB & NCBs: discussions on BSR establishment are national matter Detailed input received from various information sessions (SE and UK NCBs, Cash WG members) on their distinct BSR schemes being operational since various years Next step: publish document outlining the characteristics of the various BSR models in Q Goal of this publication: raise awareness among cash cycle stakeholders about efficiency gains through BSR Will also be valuable input for the review of the SECA framework 4

5 C. NCB cash service convergence Six measures for convergence of National Central Bank (NCB) cash services: 1.Implementation of remote access to NCB services 2.Acceptance of coin lodgements from professional clients at NCB counters 3.Electronic data exchange with professional clients for cash lodgements and withdrawals 4.Dropping the requirement to face and orientate banknotes for lodgements and withdrawals at NCBs 5.Extension of opening hours and measures with similar effects 6.Common packaging standards for NCB free-of-charge cash services Status: Six measures for convergence in the euro zone under implementation or even completed Convergence progress in non - euro zone countries for relevant measures 5

6 C. NCB cash service convergence March 2012 status Adoption of NCB cash service convergence measures - euro zone overview Key Done Under Way Not Done 6

7 C. NCB cash service convergence March 2012 status Adoption of NCB cash service convergence measures non-euro zone overview Key Done Under Way Not Done 7

8 2. SECA Single Euro Cash Area (SECA) Framework: Approved by EPC Plenary in March 2006 Objective: to develop a roadmap on how to reduce the cost and the use of cash Review of the framework needed to Assess whether the defined 2006 objectives have (not yet) been accomplished Take into account recent EU legislative developments impacting cash SECA review started: new version expected in 2 nd half of

9 3. Upcoming ECUG meeting on 31 May Euro Cash Users Group (ECUG) meeting on 31 May - main EPC concerns - Second series of euro banknotes (ES2) ES2 Rules and timelines for the various denominations Cost impact for banks (machines, parallel circulation etc) Final deadlines by which the first series of banknotes can be exchanged against ES2 notes ECB decision on the recirculation of euro banknotes: impact/ experiences noticed since its entry into force Regulation No 1214/2011 on the professional cross-border transport of euro cash by road Regulation published in the Official Journal of the EU on 29 November 2011 and enters into force on 30 November 2012 Short term issues: Interest from cash supply (CIT) and demand side (e.g. banks, retailers) National authorities granting the required cross-border CIT license: preparation status 9

GUIDELINE OF THE EUROPEAN CENTRAL BANK

11.9.2012 Official Journal of the European Union L 245/3 GUIDELINES GUIDELINE OF THE EUROPEAN CENTRAL BANK of 20 July 2012 on the Data Exchange for Cash Services (ECB/2012/16) (2012/502/EU) THE GOVERNING