New Zealand banks have expressed their concerns over the Reserve Bank of New Zealand's proposed plan for banks to open more branches to support the country's cash requirements, according to multiple media reports on Thursday.

The central bank expects that banks will be required to run about 1,300 "multi-bank" facilities, which it expects will cost them about NZ$104 million yearly.

The RBNZ has opened up the proposal for public submissions.

New Zealand Banking Association Chief Executive Roger Beaumont said that New Zealand customers would carry the cost of the "extreme" and "back to the future" measures the RBNZ is proposing to apply, according to a Thursday NZ Herald report.

"Demanding the provision of 3000 more branches and ATMs when there simply isn't the need for them will ultimately increase the cost of banking for all New Zealanders," Beaumont said, as quoted by interest.co.nz.