Following a consultation which began in February this year, the Strategic Cash Group (SCG) has published the final version of the Code of Conduct for the Authentication of Machine-Dispensed Banknotes (‘the Code’).
It also published its formal response to the consultation, the results of which are reflected in the Code.
The Code requires retailers and ATM deployers to enable machine-dispensed banknotes to be authenticated using a device tested by the Bank. Robust banknotes authentication is vital to ensure that the public can always trust that the banknotes they receive are genuine.
The Code sets out banknote authentication standards for those businesses that self-fill their ATMs or self service check-outs using banknotes tended by members of the public (a process known as ‘local recycling’).
These are comparable to the high standards already required of the wholesale cash industry (which continues to supply the vast majority of banknotes acquired by the public). Nearly thirty consultation responses were received from ATM deployment, retail, banking, cash-in-transit and other companies.
Commenting, Chris Salmon, Executive Director, Banking & Chief Cashier of the Bank Of England, said: “We are grateful to all of the organisations that have provided feedback to the consultation. By clearly setting out the responsibilities associated with local recycling, the Code will help organisations make well-informed choices about their cash management processes. And compliance with the Code means that banknotes recirculated into the economy can always be robustly authenticated: a key pillar in maintaining the public’s confidence in the currency.”
Adrian Kamellard, CEO of the Payments Council, which is overseeing the Code’s implementation, commented: “The Payments Council’s central position in the industry makes us well placed to further manage the Code and to ensure that it delivers real benefits without getting in the way of business operations, especially for small retailers. Ultimately it’s all about working together to uphold the public’s trust in cash and we’re looking forward to working with all parties involved to put the Code into practice.”
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