When the Commonwealth Bank prepared to close the only bank in the NSW town of Junee, the rural community did not take the news lying down.

The CBA said fewer than 100 people were visiting the branch each week, and it was no longer profitable as customers increasingly moved online, Junee Shire Council general manager James Davis said.

So council staff took it upon themselves to count the number of customers at the bank over four weeks, while it operated on reduced hours ahead of the planned closure.

They recorded up to 323 customers each week, roughly 26 customers per hour, or one every three minutes, Mr Davis told a Senate inquiry in Junee on Thursday.

“As you’re aware, bank closures are having a disproportionate impact on rural Australia over our city and metropolitan counterparts,” he said.

“The big four banks are meddling in a form of social engineering by forcing their loyal customers into banking practices they do not want or are unable to access.

“The reality is that vulnerable and marginalised people in communities … aren’t able to use or will never own or access the internet or a mobile phone.”

The Commonwealth Bank halted the closure of the Junee branch earlier this year and has since announced a three-year moratorium on further regional shut downs.

Chief executive Matt Comyn told the inquiry the bank was committed to having the highest market share of branches in country Australia, but the cost of keeping them open and distributing cash was becoming unsustainable.

The inquiry is examining the effect of more than 600 regional closures across country Australia since 2017, particularly in the aftermath of COVID-19 lockdowns.

All four major banks say the vast majority of customers are using online banking, as cash transactions dramatically decline.

But regional and rural communities across Australia have told the inquiry face-to-face banking is an essential service and part of their social fabric.

Farmers need trusted local bank managers to manage their complex operations, while access to cash keeps community services, local events and sports clubs afloat.

Junee mayor Neil Smith said banks were ignoring the needs of country Australians.

“Council runs parks and gardens, swimming pools, sports fields and it does not make money; we choose to do so to make our place a better place to live,” Mr Smith said.

“So let’s turn the focus on a bit less economic rationalism and a little bit more on the people: we all know how much these banks make, let’s share the money around a little.”

NAB is set to close a branch in the nearby town of Temora this month, after losing four banks in 15 years.

“It’s sad and frustrating that we’re working hard as a council and the community to build up our shire,” mayor Rick Firman said.

“Then you’ve got big banks saying, ‘actually we don’t believe in you and your present and your future’.”