Photo: RNZ
The Reserve Bank is asking people how they use and store case saying it needs more up-to-date information as it redesigns the system.
The random postal survey asks people how they prefer to pay, how often they use cash, how easy it is to deposit and withdraw coins and notes, and whether they store cash and why.
The central bank is asking new questions this year such as whether people are having challenges in using cash.
It will now carry out its survey annually instead of every two years.
"As the steward of money and cash for New Zealand, we need to ensure that New Zealanders can access, use, and bank cash," the central bank's director of money and cash Ian Woolford said.
The survey will inform its work to redesign the cash system.
Retail New Zealand chief executive Carolyn Young told Morning Report the use of cash is diminishing, to less than 10 percent of transaction.
Retail New Zealand chief executive Carolyn Young Photo: Supplied
While some people never use cash, there were times and places where it was critically important, she said.
"In rural areas versus urban areas there is more cash that goes through transactions.
"And we know intrinsically that people that are on a really tight budget, that cash is a really great tool for managing budgets."
Young said cash was indispensable in emergency situations when electricty or eftpos connections go down.
Hospitality businesses were more likely than retailers to no longer take cash, she said.
"The Reserve Bank perspective is you don't have to take cash but you have to have an alternative method if somebody can't pay by a card."
Dairy and Business owners group's Ankit Bansal told Midday Report cash still has a place in our society and for those in low socio-economic areas, cash is still used in high percentages.
"It is still used by quite a high number of customers and as I mentioned, especially in the low socio-economic areas, customers are now turning to our businesses for some small cash-outs as well because there are less bank branches across the country," Bansal said.
He said there is a lot of admin involved with storing and managing cash, and dairy owners receive don't receive anything extra from offering cash out.
"Banks, this is their job and essentially we see them picking and choosing what services they are providing," Bansal said.
New Zealand First has put forward a members' bill to protect cash as a key option in transactions, requiring stores to take it for purchases up to $500.
Young said retailers recognise the importance of cash but don't back it being compulsory.
There was a risk of robbery for businesses holding cash, and counterfeit notes were common, she said.
The survey runs to 10 October. If people receive a letter to voluntarily participate they can check it is legitimate by visiting the Reserve Bank our website, emailing cashusesurvey@rbnz.govt.nz or phoning +64 4 472 2029.
