Regulator of City to get powers to protect cash

THE City regulator will be given new powers over the UK’s biggest banks and building societies to help protect the future of cash.

Banks will be subject to Financial Conduct Authority (FCA) powers to ensure communities have cash withdrawal and deposit facilities.

Measures will be legislated for in the Financial Services and Markets Bill, helping to ensure financial inclusion, the UK Government said.

The FCA’s new powers will allow it to address cash access issues at both a national and local level. To support the FCA, the Government said it will in due course set out its expectations for a reasonable distance for people to travel when depositing and withdrawing cash.

This will reflect the existing spread of cash withdrawal and deposit facilities in the UK, it added.

Around 5.4 million adults rely on cash to a very great or great extent in their daily lives.

But fears over “cash deserts” potentially being created have grown in recent years, particularly in deprived and rural areas, as bank branches shut or reduce their opening hours.

Physical money can often help people with budgeting.

The Government has previously said that the Payment Systems Regulator will be able to require banks to reimburse authorised push payment scam losses under measures in the Financial Services and Markets Bill.