New Zealand's Council of Financial Regulators is seeking feedback from the banking industry as well as communities impacted by access to banking services on a proposal to introduce a basic transaction account option for its banks as a measure to boost financial inclusion, according to a Wednesday release.

It noted that previous research highlighted that it can be difficult for some customers to open transaction accounts.

Basic transaction accounts aim to provide basic banking services to financially excluded customers and are designed to be accessible, affordable, and simple to open and manage. But they also come with reduced functionality to reduce risks associated with credit or the financing of criminal activities, such as a cap on the account balance that a customer can maintain and daily limits on the volume and value of transactions.

The council is seeking input on the definition and broad features of a basic transaction account that would meet the needs of underserved communities in the country. It is also seeking feedback regarding key issues associated with access to transaction accounts and other approaches that could resolve these issues.

It also asked for feedback on whether the banking sector is well-positioned to set minimum standards for the provision of basic transaction accounts or whether regulatory support could be required.

The last date to submit a response is June 18.