UK banks could face fines if they fail to ensure that both citizens and businesses will have the option to withdraw or deposit cash within a radius of one mile (about 1.6 kilometers) in urban areas, and three miles (about 4.8 kilometers ) in rural areas. This new regulation was announced on Friday by the British Treasury.
The proposal, presented by Andrew Griffith, economic secretary of the Treasury, has as its main objective to counter the increasing disappearance of bank branches and ATMs in less populated regions of the country. This occurs in parallel with the decline in cash transactions due to the rise of “contactless payments”.
Griffith said in a statement that the established one- and three-mile radiuses will ensure a level of access to ATMs and personalized banking services equivalent to today. However, you will note that these limits could be expanded if cash utilization continues to decline.
Metallic money will be more important and continuous in the economy
Griffith pointed out that the Financial Conduct Authority (FCA), the British regulator of the sector, will be able to impose fines on banks that do not comply with the new policy.
The minister insisted that cash has yet to play “an important and continuing role” in the economy, despite the decline in the use of coins and notes in recent years. He stressed that the FCA will assume responsibility to maintain “current levels of coverage”, while acknowledging that needs may be different by location and may change over time.
However, financial institutions must offer an alternative before they undertake the closure of an ATM or a branch.
“People don’t have to drive for hours to get ten pounds or deposit money for a birthday card, and businesses don’t have to travel long distances to deposit cash,” Griffith said.
The headline stresses that these measures will benefit “everyone” who uses cash, especially those who “live in rural areas, the elderly and people with disabilities.”
