FCA issues new guidelines to ensure cash access for consumers and small enterprises
The Financial Conduct Authority (FCA) has set out new guidelines for UK banks and building societies to safeguard “reasonable access” to cash deposit and withdrawal services for personal and small business current accounts.
FCA sets out new rules to ensure access to cash
From 18 September, institutions will be expected to evaluate cash access and determine if additional services are required when making alterations to local services.
Also, banks and building societies must respond to requests from local residents and community groups, address access gaps, and keep facilities like bank branches open until new services are established.
The FCA, which recently declared an overhaul of the UK’s listing rules, suggests that identified “gaps in cash access” could be mitigated through various measures, such as ATMs, banking hubs and Post Office facilities.
The regulatory body adds that while its powers won’t stop bank branch closures, they will have an “impact where branch closures leave significant gaps in local cash access”.
Commenting on the announcement, Sheldon Mills, executive director of consumers and competition at the FCA, states: “Three million people continue to rely on cash, even as digital payments become more popular. And many small businesses still need somewhere to safely deposit their takings each day.”
In May, the UK government confirmed, under the Financial Services and Markets Act 2000, that 14 banks and building societies – including Barclays, Lloyds, and Nationwide Building Society – will implement the new cash access system.
