Proactive Investors - Britain’s banks will be required by law to ensure people have access to cash under new government rules.
Threatening fines if banks do not offer places for customers to withdraw physical money within one to three miles, the Treasury said cash was “here to stay” on Thursday.
Under the rules, banks will have to guarantee that people in urban areas have a cash point or physical branch within one mile, with this being extended to three miles in rural regions.
Failure to do so could result in fines from regulator the Financial Conduct Authority (FCA).
“People shouldn't have to trek for hours to withdraw a tenner to put in someone's birthday card,” economic secretary to the Treasury Andrew Griffith said.
“Nor should businesses have to travel large distances to deposit cash takings.”
Though the UK’s use of cash has indeed declined in recent years, spurred on by the pandemic in particular, concerns have been raised over vulnerable people’s access to notes and coins.
On average, some 50 bank branches have closed each month since 2015, making it ever more difficult for those unable or less willing to use digital banking services.
The new rules should maintain the current level of coverage, the Treasury explained, with legislation for the FCA to issue fines having been passed earlier this summer.
Distances could well be extended in the future, but for the time being, banks will have to ensure another cash service is available before closing branches.