New rules introduced by the Financial Conduct Authority to protect peoples’ access to cash are “already having an impact”, according to the watchdog.
Under rules announced in July before coming into force from today, banks and building societies must ensure that local communities retain access to cash services.
The rules were brought into force in response to the shift to digital banking, which has led to large-scale closures of banking branches across the UK.
Under the rules, banks and building societies must assess whether changes to local services, like closing branches or cash machines, leave local communities without sufficient access to cash.
Residents and businesses can raise concerns with LINK, the UK’s cash access and ATM network, where perceived gaps are found.
Fourteen banks and building societies, including Barclays PLC (LSE:BARC), Bank of Scotland, Lloyds Banking Group PLC (LSE:LLOY) and Santander, have been designated by the Government to support the scheme.
Today, the FCA announced that 15 communities will be given greater access to cash services, either via an ATM, banking hub or Post Office service.
Sheldon Mills, executive director for consumers and competition at the FCA, said: “The way we spend money is changing, and far fewer of us use cash day-to-day. We don’t want to stand in the way of change, but we do want to ensure reasonable access for those who continue to rely on cash.
“Our new rules are already having an impact, protecting vital services for communities across the country.”