RBA unveils new $20 note amid growing demand for cash

The Reserve Bank has revealed the design of the new $20 banknote amid growing demand for cold hard cash.

The RBA will release the new $20 note into circulation in October 2019.

The Reserve Bank has revealed the design of the new $20 banknote amid quietly growing demand for cold hard cash.

The new $20 will be released into general circulation in October 2019 and features the same security features of the previously released $5, $10 and $50. Designed to prevent counterfeiting, they include a top-to-bottom clear window that contains dynamic elements. “Large clear windows on polymer banknotes are extremely difficult to counterfeit without it being obvious that the banknote is a counterfeit,” RBA assistant governor Lindsay Boulton told The Australian.

Counterfeiting is not a big problem in Australia, and most Australians are unlikely to ever encounter counterfeit, with just one fake for every 79,000 genuine banknotes in circulation, according to the RBA’s 2018 numbers.

“We are upgrading the security features of our banknotes to ensure that it stays this way,” Mr Boulton said.

While the importance of cash as a payment instrument continues to decline relative to electronic payments, Mr Boulton said that demand for banknotes in the community is growing at around 3 per cent a year. The value of notes in circulation as a share of GDP is at its highest level for around five decades.

“This partly reflects a shift in the community towards holding banknotes as a store of wealth,” Mr Boulton said.

“We expect cash to continue to be an important part of the payments landscape in Australia even though its relative importance as a payment instrument is declining.

“It may not be the preferred method by which people make payments, but it is still likely to be carried.

“People will still want to hold it as a store of wealth and as a precaution in the event that card terminals and electronic forms of payment are unavailable or simply not accepted.”

The new $20 banknote will feature a patch with a rolling-colour effect and microprint featuring excerpts from Reverend John Flynn, whose portrait will be on the note along with that of Mary Reibey.

“The new $20 banknote continues to celebrate the lives of two outstanding Australians,” RBA governor Philip Lowe said.

“Their stories are told through the images we have incorporated on the banknote, which provide a rich and diverse narrative about their life in Australia.”

Mr Flynn pioneered the world’s first aerial medical service in 1928, starting the forerunner of what is today known as the Royal Flying Doctor Service.

Ms Reibey, whose portrait appears on the existing $20 bank note, arrived in Australia as a convict, and later earned a reputation as an astute businesswoman running shipping and trading enterprises.

She also became known for her support of charity, religion and education.

The new banknotes have a tactile feature to help people who are blind or vision impaired to distinguish between the different notes.

The RBA said it continues to work closely with manufacturers and retailers to help them prepare ATMs and other banknote authenticating machines to handle the new $20 banknote.

It is expected that a new $100 banknote will be released next year, the RBA said.