Government plans to allow consumers and small businesses easy access to cash deposit and withdrawal services have drawn a mixed reception from campaigners, politicians, and banking experts.
Some say the proposals are short on key detail and will do little to stop the closure of hundreds more bank branches. Others say they will protect access to cash. The Mail on Sunday has long campaigned to ‘Keep Our Cash’.
Under the Treasury proposals, financial institutions will have to ensure the ‘vast majority’ of the population (at least 95 per cent) have access to cash (and cash deposit services) within three miles of home.
Treasury proposals: Financial institutions will have to ensure at least 95% of people have access to cash (and cash deposit services) within three miles of home
Such access can be through local shops (via cashback), banks, cash machines, the Post Office, and the small number of new-style shared bank branches.
The Financial Conduct Authority will be allowed to delay closure of a key outlet until an alternative cash service is up and running.
Rule breaches could result in offenders being fined by the regulator.
Andrew Griffith, Economic Secretary to the Treasury, says the new measures ‘benefit everyone who uses cash’.
But Tulip Siddiq, his Labour counterpart, believes they do not go far enough. She says: ‘With so many bank branches closing, it is vital to protect access to cash and in-person banking for those who aren’t able to use online services.’
Derek French, a longstanding advocate for face-to-face banking services, says the plans are ‘very vague’.
He is also concerned that the rules, which are likely to come in next summer, may still deny small businesses easy access to vital cash deposit services.
