The move by the Treasury announced last week comes following concern from Katherine and her colleagues about access to cash for people in rural areas and the vulnerable.
The rules state the minimum expectation on banks is to protect services for people and businesses wanting to withdraw or deposit money.
In addition, the Financial Conduct Authority now has new powers granted by the government to deal with banks and building societies who do not adhere to the rules, with fines an option.
Access to cash is a big issue here in South Ribble and the north west and I welcome these new rules that very much build on the government’s Financial Services and Markets Act 2023 which has enshrined in law access to free cash.
I accept fewer people use money, as cards and digital payments have become more popular, but that should not mean the millions upon millions who do want to use coins and notes have to be inconvenienced or out of pocket for doing so.
This is particularly important as banks continue to close on our high streets and options to withdraw or deposit cash dwindle.
The government has listened to concerns from myself, my colleagues, from charities and other groups and it continues to act on this important issue.
The vast majority of people living in urban areas can access cash deposit and withdrawal services within one mile, with rural-dwellers around three miles away.
If a service is withdrawn and a replacement service is needed, the new rules also state this should be put in place before the closure takes place.
Laws introduced in the Financial Services Act 2021 have delivered cashback through the LINK network in over 2,500 shops across the UK without any need to buy something in store.
