About the Banknote Distribution Framework

The Banknote Distribution Framework (BDF) is a framework created and managed by the Reserve Bank which governs the distribution of wholesale banknotes between the Bank and Participants to the BDF and the quality sorting of banknotes in circulation. The BDF was implemented on 1 March 2024. For each Participant, it replaces the bilateral contract – the Banknote Distribution Agreement (BDA) – which the Reserve Bank had with that Participant.

In August 2022, as part of the Review of Banknote Distribution Arrangements: Conclusions Paper, the Reserve Bank undertook to translate the 2021 BDAs into a publicly available, standard set of terms and conditions. The standardisation and transparency of contractual arrangements for banknote distribution are aimed at enabling changes that benefit the industry as a whole to be implemented more easily, particularly as the cash distribution landscape can evolve quickly.

An industry forum was established by the Reserve Bank and facilitated by the Australian Payments Network (AusPayNet) to facilitate the translation of the 2021 BDAs into the new BDF. Signatories of the 2021 BDAs and their Approved Cash Centre Operators (ACCOs) were parties to these discussions.

Current Participants of the BDF include:

• Australia and New Zealand Banking Group
• Commonwealth Bank of Australia
• National Australia Bank Limited
• Westpac Banking Corporation.

The legal framework of the BDF includes the Banknote Distribution Terms and Conditions (BDTCs), which are publicly available, as well as procedural documents and the BDF Participation Agreements.