Banks Expected to Meet Demand for Cash This Christmas

• Deputy Governor of the Bank of Jamaica (BOJ), Jide Lewis, says that all banks are expected to be prepared for the increased demand for cash during the upcoming holiday season. He mentioned that the seasonal increase in demand for currency during Christmas time would likely mean that banks will need to stock up on additional funds.
• Mr. Lewis, who is responsible for the Financial Institutions Supervisory Division, was addressing the BOJ’s Quarterly Monetary Policy Report Press Conference on Monday. He noted that banks are being held to the minimum service standards for the operation of the machines, which were announced earlier this year
• In April, the BOJ issued new service standards as guidelines for the operation of automated banking machines (ABMs) by deposit-taking institutions (DTIs). These standards were implemented to address (i) the availability of cash (ii) infrastructure maintenance and the management of service disruption (iii) ABM fees and charges (iv) the deployment of machines (v) accessibility and ease-of-use (vi) fraud minimisation (vii) the safety and security of customers and (viii) financial education of ABM users.
• Designed to address long-standing consumer concerns, the standards subject banks to heightened scrutiny without imposing fines for non-compliance. They mandate that at least 90% of Automated Banking Machines (ABMs) must remain operational at all times, with those in service maintaining a functionality rate of at least 95%.
• Additionally, ABMs in urban or resort areas must not remain out of cash for more than 60 consecutive minutes, while those in rural areas are required to be restocked within a maximum of 180 minutes (three hours).
• Although fines are not currently in place, the Bank of Jamaica (BOJ) is set to implement a new regulatory framework for the financial sector in 2026, which will introduce penalties for banks failing to comply with ABM service standards.

(Sources: JIS & NCBCM Research)