Bank of Israel outlines cash's emergency role: what to check in your household payment backup

On 12 October, the Bank of Israel published a review that places a practical question alongside the expansion of digital payments: how to retain the ability to pay when electricity or communications are disrupted. The bank emphasizes access to cash as part of payment continuity in the economy. Its review does not set out how much money a family should keep at home.

That distinction matters from the outset. A report on the payment system is not an instruction to make a large withdrawal, and a cash-use statistic is not a personal emergency budget. For a household, the useful question is which essential expenses might be blocked without another payment method. The information here is general and is not personal financial advice.

What the new review shows

According to the Bank of Israel's statement on cash use, currency in circulation grew at an average annual rate of about 2% in 2024 to 2025, compared with about 7% in 2021 to 2023. This is the growth rate of cash in circulation, not a change in the average family's spending.

The report combines data from different sources. Its payment habits survey shows weekly use of digital wallets rising from about 5% in 2019 to about 47% in 2025, alongside a decline in weekly cash use from about 80% to about 48%. The online survey represents Hebrew speakers aged 16 to 74 who are connected to the internet, so its results should not automatically be applied to all Israeli residents.

These figures do not contradict each other, either. You can pay by phone for most purchases and keep a few banknotes for occasional need. How often a payment method is used and the need to keep it available are separate questions. Someone who rarely uses cash may need it precisely when their usual habit is no longer possible.

A payment backup does not guarantee a purchase

The Bank of Israel notes cash's role in scenarios involving damage to electricity and communications infrastructure. For households, the implication is limited but useful: paying with banknotes does not require a charged personal phone or a digital wallet that works at that moment.

It does not follow that every shop will operate during a power outage. Its till may not work, the premises may be closed or the product you need may be out of stock. Money kept at home does not solve physical access problems either. Payment methods should therefore be planned as part of broader preparations, alongside the things the household needs in advance.

Start with a specific question: if you cannot use your phone to pay tomorrow, which purchases will genuinely be needed? A list beginning with basic food, a regularly purchased medicine or a child's need differs from a full month's shopping list. It also helps distinguish urgent needs from expenses that can wait.

How to consider an amount without inventing an official recommendation

The review provides no household formula. You can carry out a simple household assessment as a systematic planning method, not as a Bank of Israel recommendation: choose a short, defined scenario, list the essential expenses it involves and check which might require cash payment.

There is no need to begin with a round number that feels reassuring. Start with the expense itself. Is suitable food already at home? Is a medicine about to run out? Will travel be needed, and would it even be possible in the chosen scenario? Only then can you calculate an appropriate amount and consider whether keeping it is affordable and safe.

The duration is also a planning assumption, not a number derived from the report. A household with medical needs, a baby or a family member requiring assistance may need a different assessment from one where most purchases can wait. If current emergency instructions apply, adjust the planning to them rather than relying solely on a scenario chosen in ordinary circumstances.

A useful assessment also considers the other side: how much can you withdraw without affecting upcoming payments? Money withdrawn and kept at home still belongs to the family budget. It is not new savings, nor a reason to leave an account without enough funds for existing commitments.

Usefulness and safety matter more than a large pile

When planning a backup, consider a mix of banknotes that also allows small purchases, rather than relying solely on high denominations. This is a practical household choice, not an official instruction from the review. Bear in mind that a business may not always have suitable change.

The money should be accessible to household members authorized to use it, but not visible to visitors. When choosing storage, consider loss, theft, water and fire risks. There is no need to publish the amount or storage location in groups or on social media to complete the preparations.

Also decide who knows about the backup and what happens if it is used in everyday life. Without that agreement, an envelope intended for an essential expense may gradually empty without anyone noticing. A simple private record can help track what remains without turning the matter into a complicated management system.

Three checks before going to an ATM

Before withdrawing, check whether suitable cash is already at home. Next, check the displayed cost and the withdrawal terms for your account and card. Finally, consider whether you are acting on a defined need or merely reacting to an alarming headline. These are different questions, and all are worth answering before approving the transaction.

If you decide to prepare a backup, you can do so during routine conditions and within your budget. The review's data does not predict a malfunction tomorrow or justify withdrawing the maximum amount. Even completed preparations need occasional checks: have needs changed, is the money still there and do household members know how to use it?

For other budgeting and everyday decisions, see the Consumer section. The central question remains practical: which essential expense could you not pay if your usual payment method failed, and what is the most reasonable backup for it?

What happens next

The Bank of Israel presents maintaining access to cash as an objective alongside advancing additional payment methods. The review is not an announcement of a grant, tax change or new banking product. It concerns the ability to choose between payment methods and the system's functioning in routine and emergency conditions.

For a household, the next step can be small: check an alternative payment method, define an essential need and make sure the backup is genuinely useful. This decision does not require giving up the convenience of mobile payments. It requires knowing what to do when that convenience is unavailable.