Reserve Bank of New Zealand Act 2021

Central bank functions - Regulating bank note handling machines

162: Content of standards

You could also call this:

"Rules for Bank Note Machines"

Illustration for Reserve Bank of New Zealand Act 2021

The standards can say what a bank note handling machine must be able to do. You can think of it like a set of rules that the machine must follow. The rules can include things like what a real bank note looks like, so the machine can tell if a note is fake or not. The standards can also set minimum quality standards for bank notes that a machine can give out or prepare for sale. You might wonder what happens if a machine finds a note that is not real or not good enough. The standards can say what the machine must do with that note, like holding onto it. The standards can also say how often a machine must be tested to make sure it is working correctly. You can read more about testing in section 164. The standards can also require machines to keep records of when they were tested. The standards can include other requirements that machines must follow to make sure they are working properly, as mentioned in section 160. You should know that different machines or situations might have different rules. The rules can be different depending on what type of machine is being used or what is happening.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS345517.

This page was last updated on 1 January 2026 — View changes

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rules

161: Procedure for issuing standards, or

"How the Reserve Bank makes new rules that affect people"

163: Standards do not prevent return to Bank of unfit bank notes, or

"You can return damaged bank notes to the Bank"

Part 3Central bank functions
Regulating bank note handling machines

162Content of standards

The standards may do 1 or more of the following:
specify physical characteristics that define or determine the quality and authenticity of a bank note that a bank note handling machine must be able to recognise:
set minimum standards of quality for a bank note that a bank note handling machine may dispense or prepare for sale:
set requirements to ensure that a bank note handling machine does not dispense or prepare for sale a note if the machine determines that the note—
1. is not a bank note issued by the Bank; or
2. does not meet those minimum standards of quality:
set requirements for how a bank note handling machine deals with a note referred to in paragraph (c) (which may require, for example, the machine to withhold the note):
set a minimum number of sensors for a bank note handling machine:
provide that, if specified software or software versions are used, particular standards or parts of standards will be treated as satisfied:
provide that, if specified hardware or hardware versions are used, particular standards or parts of standards will be treated as satisfied:
specify requirements for—
1. the regular testing of a bank note handling machine to ensure it maintains compliance with the standards; and
2. testing under section 164; and
3. record-keeping relating to that testing:
specify any other requirements that a bank note handling machine must comply with in order to provide the reasonable assurance referred to in section 160.

Standards under subsection (1)(f) and (g) must not require specified software or software versions, or specified hardware or hardware versions, to be used.
Different matters may be specified, set, or required in respect of different types of bank note handling machines or other circumstances.