UK banks may be fined if they do not offer access to cash | comp

British banks could be fined if they do not offer individuals and businesses the ability to withdraw or deposit cash within a radius of one mile (1.6 kilometers) in urban areas and three miles (4.8 kilometers) in rural areas, as announced on Friday by the British government. British Treasury.

The measure introduced by Treasury Economics Secretary Andrew Griffiths this Friday aims, above all, to stop the gradual disappearance of bank branches and ATMs in the most unpopulated areas of the country, as transactions with physical money (“contactless payments”). The set limits of one and three miles would guarantee the current level of access to ATMs and personal banking services, though he warned those limits could be extended if cash use drops.

Griffiths indicated that the Financial Conduct Authority (FCA), the British regulator for the sector, will be able to impose fines on banks that do not adhere to the new policy. The minister insisted that cash has not yet played a “significant and continuing role” in the economy, despite the decline in recent years in the use of coins and banknotes.

He stressed that the FCA would assume the powers to maintain “current levels of coverage”, recognizing that needs may vary by location and may change over time. However, he cautioned that financial institutions must offer an alternative before they close an ATM or a branch.

“People don’t have to drive for hours to pick up ten pounds or deposit money for a birthday card, and businesses don’t have to travel long distances to deposit cash winnings,” Griffiths said. The address stressed that these measures would benefit “everyone” who uses cash, especially those who “live in rural areas, the elderly and people with disabilities”.

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