• UK banks could face fines if they do not provide free access to cash withdrawals within a three-mile radius of consumers and businesses.
• The Financial Conduct Authority (FCA) will gain the authority to impose fines on banks not offering free cash withdrawal services.
• Shortages of bank branches and accessible ATMs have become a problem for many UK citizens.
Tough Stance on UK Banks
The British authorities are planning to take a tough stance on UK banks. According to reports, banks must ensure easy public access to cash through ATMs & bank branches. Failing to comply could result in fines on the banking entity.
Free Access To Cash Withdrawals
Under the proposed regulations, the Financial Conduct Authority (FCA) will gain the authority to impose fines on banks not offering free cash withdrawal services. Additionally, per the new regulation, individuals with current accounts should not encounter hidden fees when withdrawing money. It is still uncertain if the new three-mile rule will also apply to rural communities nationwide.
Closing of UK Banks
In recent years, there has been systematic closure of local bank branches as well as reduction in free-to-use ATMs. This has created discontent among several campaigners who have voiced their opinion and started campaigns for ensuring UK banks create conditions for individuals to access cash . The issue is particularly important for those that do not have access to digital payments and rely solely on hard cash.
UK Banks Closing Accounts of British Firms Trading with Ukrainian Partners
British businesses engaging in trade with Ukrainian partners are facing account closures by banks according to a recent report by Politico . This has caused further discontent among business owners in both countries who allege that these moves are politically motivated sanctions against Ukraine by Britain .
Economic Secretary To The Treasury Issues Policy Statement
His Majesty’s Treasury is set to release new guidelines outlining its expectations from how banks should ensure public access to physical cash in the coming days . The Economic Secretary to Treasury Andrew Griffith is expected issue a policy statement regarding these plans soon , however no exact date has been specified yet .