FCA to ensure accessible cash

The measures will be legislated for in the upcoming Financial Services and Markets Bill.

The stipulations will apply to the UK’s largest banking and building societies, and will mean withdrawal and deposit facilities such as ATMs will be within a “reasonable” distance from their community.

The FCA could issue fines should lenders fail to adhere to legislator requirements, according to The Guardian, although the obligated “reasonable distance” has not been defined.

The rules will not protect bank branches, with a likelihood of banks providing free-to-use ATMs, Post Offices or mobile banking hubs.

The news came as high street banks have been closing branches in droves. Lloyds Banking Group, which owns Halifax and Bank of Scotland, said it would close a further 28 branches.

Santander recently said it will slash weekday opening hours to 9.30am to 3pm, and Which? Consumer group said about 5,000 bank and building society branches have disappeared from UK high streets since 2015.

The Treasury said about 5.4 million adults use and rely on cash on a daily basis, and the announcement has been welcomed by campaigners.

Natalie Ceeney, chair of the Access to Cash Review and Cash Action Group, said: “We need to see the consultation response in full to have a better understanding on how the legislation will work in practice.

“What’s important is that a lot of work has gone into this over the past few years and I am pleased that parties of all colours recognise the importance of access to cash. It is vital that we all work together to get the best outcome for consumers and small businesses.”

Economic Secretary John Glen said: "Millions of people across the UK still rely on cash, particularly those in vulnerable groups, and today we are delivering on our promise to ensure that access to cash is protected in communities across the country. 

"I want to make sure that people are still able to use cash as part of their daily lives, and it’s crucial to ensure that no person nor community across the UK is left behind as we embrace a more digital world."