The European Payments Council (EPC) has published an updated Single Euro Cash Area Framework (SECA Framework). The purpose of the SECA Framework is to continue the development of a common set of rules and best practices for the distribution and recirculation of wholesale and retail euro cash in the Eurozone.
The SECA Framework identifies that cash is the most popular, but most expensive payment instrument to operate. However the cost of cash usage is not always passed on to the actual users of cash, therefore it contributes to the rising prices of other banking services. The SECA Framework seeks to reduce the cost of using cash by 2020 by defining banking industry requirements for core cash services provided by Euro-system National Central Banks.
What this means for you
The extent of the regulation that is to be implemented following the updated SECA Framework remains to be seen. If the SECA Framework achieves its objectives, this should result in a reduction in the cost of cash for the public and a Eurozone set of regulations, which can be applied consistently in each Eurozone country.