The government’s move tries to cash in on financial exemptions from uninhabited areas.
Banks of England can be fined if they do not offer individuals and small businesses the ability to withdraw or deposit cash within a one mile (1.6 kilometer) radius in urban areas and three miles (4.8 kilometers) ) in rural areas, as announced yesterday by the UK Treasury.
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Banks of England can be fined if they do not offer individuals and small businesses the ability to withdraw or deposit cash within a one mile (1.6 kilometer) radius in urban areas and three miles (4.8 kilometers) ) in rural areas, as announced yesterday by the UK Treasury.
The measure, proposed by the Treasury’s economics secretary, Andrew Griffith, is aimed primarily at halting the progressive disappearance of bank branches and ATMs in the most unpopulated areas of the country, taking advantage of the unstoppable growth of card transactions and mobile payments.
The head of the Ministry of Finance explained in a statement that the agreed minimum would guarantee an optimal level of access to ATMs and personalized banking services, although he cautioned that these limits could be increased if cash use falls rapidly.
Griffith indicated that the Financial Conduct Authority (FCA), the UK’s field regulator, could impose fines on banks that do not comply with the new policy.
The minister insisted that cash had yet to play a “sustainable and important role” in the economy, even though the use of coins and banknotes had declined in recent years.
He stressed that the FCA would take over powers to maintain “current coverage levels”, while recognizing that needs may vary by location and may change over time.
Financial institutions are required to offer alternative access to cash whenever they close ATMs or branches in cities without financial services. “People don’t have to drive hours to get ten pounds from an ATM or to get a gift card for a birthday. Stores also don’t have to drive far to deposit money at the checkout,” says Griffith. And he assured that these measures would benefit “everyone”, especially those “living in rural areas, the elderly and people with disabilities”.
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