Central Bank of Japan has announced that it will hold cash deposits online for the next two week to allow the banks to manage cash volumes and maintain their financial stability.
The Bank of Tokyo-Mitsubishi UFJ will hold up to 20 billion yen ($21.3 million) in online cash deposits until October 7, the Bank of Korea will hold around 2 billion won in cash deposits on October 4 and the Bank and the Finance Ministry will hold 1 billion won and 3 billion won, respectively, on October 7.
The central bank says it will maintain this policy to help prevent financial crises in the future.
It also said it will temporarily reduce the reserve requirement of 10 percent of bank reserves to avoid a banking crisis.
The Reserve Bank of Singapore has announced a similar program and is holding up to 30 billion won ($31.4 million) of cash deposits in its online bank account.
The government also has announced it will not hold cash at all for a week starting on October 9 to allow for financial stability, and to help the central bank to manage liquidity in its financial system.
The bank says online banking accounts will be limited to 10,000 yen ($12.2) each and deposits of more than 10,200 yen ($13.1) will be subject to a 50-percent reserve requirement.
The reserve requirement will remain in effect for three weeks after the bank holds up to 10 billion won of cash.
In the first week of October, the central banks of the United States, Canada, Australia and New Zealand have announced they will not maintain cash deposits at all and will allow their banks to open and close the accounts.