New cash rules are now in effect, making banks responsible for ensuring everyone has easy access to cash services. The FCA is requiring banks to address gaps in their services and set up local banking hubs if they close branches.
New Cash Rules Now in Effect for Customers at 14 Banks, Including Lloyds, NatWest, Santander, Barclays, and HSBC
By Lydia Amazouz
Published on 18 September 2024 08:41
Customers and small business owners stand to profit from new cash rules that will go into effect today, Wednesday, September 18.
The Financial Conduct Authority (FCA) is implementing regulations that will require banks and building societies to review whether their customers have enough accessibility to cash operations.
New Cash Rules Require Banks to Address Service Gaps and Provide Local Solutions
The FCA stated that gaps could be addressed using a variety of methods, which could include Post Office facilities. It will be left to the banks to provide any necessary new services to fill the gap, reports Express.
The FCA guidelines also prohibit undue delays in supplying solutions to cash service deficiencies. If regular violations of the rules are discovered, the FCA stated that it will utilise its authority to address them.
In regions with a single financial institution branch, the rules will force them to establish a banking hub and ensure that it is operational before closing the branch.
This is supposed to guarantee that no local community is left without cash services from its bank or building society.
Banking hubs are Post Office-run shared centres where consumers can perform a variety of services that they would normally perform at their nearby bank branch, such as cashing cheques and withdrawing money.
The Banks Affected by New Cash Regulations
The following 14 banks are now required to comply with new regulations:
- AIB Group (UK) plc
- Bank of Ireland (UK) plc
- Bank of Scotland plc (including Halifax)
- Clydesdale Bank plc (Virgin Money)
- HSBC UK Bank plc
- Lloyds Bank plc
- National Westminster Bank plc (including Ulster Bank)
- Nationwide Building Society
- Northern Bank Limited (Danske)
- Santander UK plc
- The Co-operative Bank plc
- The Royal Bank of Scotland plc
- TSB Bank plc
Between June 2021 and June 2023, 1,358 branches of banks and building societies closed, according to the FCA. In September alone, 69 more branches, including Halifax, Royal Bank of Scotland (RBS), Lloyds, NatWest, and Barclays, are set to close.