Banks to face fines if they don’t offer easy access to cash

The Financial Service Authority (FCA) has been given the power to fine banks if they don’t provide people with free access to cash.

Under the proposals, people living in urban areas should be able to get money out for free - either at an ATM or branch - within one mile of their home, while those living in rural areas must have access within three miles.

The distances were chosen to maintain the current level of coverage of free access to money but may be extended if cash use declines further in the future.

Alongside the power to fine banks that don’t provide free access to withdrawing money, account holder’s will no longer be punished by hidden fees when withdrawing cash.

The proposals come following a string of bank closures with some towns being left without free cash ATMs or branches where people can get face-to-face help.  

They will be welcomed by the millions of people who rely on cash, such as those who are digitally excluded like the elderly or those with a disability.