Key Takeaways:
- 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
YEREVAN (CoinChapter.com) —Banks in the UK could face fines if they do not provide free access to cash withdrawals within a three-mile radius of consumers and businesses. According to a recent report from Sky News, the dictate is a part of upcoming government plans for the country’s banking sector.
His Majesty’s Treasury is set to release the new guidelines in the coming days. The specifications will outline its expectations for how banks should ensure public access to physical cash.
Under the proposed regulations, the Financial Conduct Authority (FCA) will gain the authority to impose fines on banks not offering free cash withdrawal services. The FCA is the UK’s financial industry regulator.
Additionally, per the new regulation, individuals with current accounts should not encounter hidden fees when withdrawing money. Meanwhile, it is still uncertain if the new three-mile rule will also apply to rural communities nationwide.
The Sky News report further suggests that the Economic Secretary to the Treasury, Andrew Griffith, will issue a policy statement regarding these plans. However, the agency does not speculate on the exact date of this statement.
Closing of UK Banks, lack of ATMs hurt citizens
In recent years, there has been systematic closure of local bank branches. Moreover, there has also been a reduction in free-to-use ATMs.
The reduction of freely accessible cash has been met with much discontent. As a result, several campaigners have voiced their discontent. Consumer advocacy groups have launched a campaign to ensure UK banks create conditions for individuals to access cash.
The issue is particularly important for those that do not have access to digital payments. They still rely on hard cash, and ease of access is vital.
In other news, British businesses engaging in trade with Ukrainian partners are facing account closures by banks. According to a recent report by Politico, UK banks are apprehensive about Russian sanctions and potential money laundering.
