[ad_1]
Tory MPs have campaigned for more protections, with some urging Rishi Sunak to go further and also pass laws forcing shops to accept physical money.
The Prime Minister rejected those calls in June, telling the House of Commons that “organisations themselves should be able to choose the forms of payment that they will accept”.
Parliament passed the Financial Services and Markets Act last month, which hands the City watchdog powers to make the banks comply with the new minimum distances.
At the time the Treasury said it would provide further guidance on what it considered a “reasonable distance” for people to have to travel to access cash.
Ministers will also set out which companies will be subject to the rules, and the FCA will consult with industry this autumn before implementing them.
An FCA spokesman said: “The way we pay is changing, but these new powers will help ensure access to cash is maintained for many businesses and people who continue to rely on it.
“In the autumn we will consult on new rules that will require banks to maintain reasonable access to cash in a local area by assessing local provision and taking appropriate steps to install additional services where they are needed.
“We look forward to the Government outlining which firms our new access to cash rules will apply to inform this vital work.”
Make businesses accept cash
Anne Marie Morris, a Tory MP who sits on the Commons Treasury Committee, expressed concerns over how the new rules will be enforced.
She also urged Downing Street to go further by bringing in a law that would make businesses accept cash as well as card payments.
“Free access to cash being guaranteed is a good step forward. I welcome it. But how is it to be policed?” she told the Telegraph.
“The concept needs stress testing. A blanket three-mile obligation for rural areas sounds great, but what is rural defined as?
“This is a move in the right direction but without a better understanding of the cash need we may not get the best results.”
She added: “Clearly cash access and cash acceptance are two sides of the same coin. The two have to be in balance.
“Some businesses will not accept cash, some businesses will only accept cash. Some consumers can only pay in cash, many prefer to pay in cash to help budgeting.
“This needs much more focus. The government needs to review again the issue of cash acceptance to avoid social and financial exclusion.”
[ad_2]