CashNews.co
New rules will come into this force affecting all UK bank users and helping protect access to cash.
From September 18, the Financial Conduct Authority (FCA) is bringing in its new Access to Cash policy, which requires banks to ensure adequate provision of cash machines and other means of accessing cash for Britons.
The new rules will require 14 big-name banks named by the FCA, including Lloyds, NatWest and Barclays, to maintain their cash services, in particular when closing branches.
The banking giants will have to assess gaps in local cash provisioning, looking at where their customers live and where people will take a major hit from losing their local branch.
Bank bosses will have to put in place adequate services before they close down an existing cash facility, and this must happen “without unreasonable delay where assessments find there will be a significant gap in local provision.
The 14 banks who have to comply with the new regulations include:
- AIB Group (UK) plc
- Bank of Ireland (UK) plc
- Bank of Scotland plc (including Halifax)
- Clydesdale Bank plc (Virgin Money)
- HSBC UK Bank plc
- Lloyds Bank plc
- National Westminster Bank plc (including Ulster Bank)
- Nationwide Building Society
- Northern Bank Limited (Danish)
- Santander UK plc
- The Co-operative Bank plc
- Lloyds Bank plc
- The Royal Bank of Scotland plc
- TSB Bank plc.
FCA data found in the two years to June 2023, a total of 1,358 banks and building society branches closed for good.
Another 69 branches are closing in September, including branches of Halifax, Royal Bank of Scotland (RBS), Lloyds, NatWest and Barclays.
The new rules will also require the banks to “clearly communicate to consumers and businesses where they can access cash services, how to make a cash access request and how to request an assessment review”.
The upcoming FCA policy got a mention in Parliament this week in a response to a question from Conservative MP Sir John Hayes, about ensuring cashpoints are maintained in rural areas.
Treasury minister, Tulip Siddiq, said in response: “The Government is committed to protecting access to cash for individuals and businesses across the UK, including in rural areas.
“The Financial Conduct Authority is the regulator responsible for access to cash further to the Financial Services and Markets Act 2023, with powers to seek to ensure the reasonable provision of cash withdrawal and deposit facilities for individuals and businesses, including free withdrawal services for individuals.
“The FCA published its final rules on access to cash on 24 July. Under its rules, designated firms will be required to undertake assessments of a community’s cash access needs following the closure of a service or a community request, and to put in a new service if necessary.”
The new FCA rules come into force from September 18. You can read the full policy here.