In　this　paper,　a　model　for　e-cash　system　with　graded　multiple　banks　is　proposed　to　prevent　Trusted　Third　Party　(TTP)　and　Central　Bank　(BC)　from　abusing　their　power.　Besides,　a　new　e-cash　system　with　graded　multiple　banks　is　proposed　based　on　entrusted-protected　proxy　signature　scheme.　The　new　system　not　only　avoids　some　problems　in　the　existing　systems　based　on　group　signature　scheme,　but　also　effectively　prevents　TTP　and　CB　from　cooperating　to　imitate　issuing　banks　and　forge　e-cash,　without　bringing　shops　much　burden　of　keeping　more　data.　A　secure　and　effective　e-cash　system　with　multiple　banks　is　achieved.　©　2006　IEEE.