The UK Financial Conduct Authority has new powers over the UK largest banks and building societies to ensure cash withdrawal and deposit facilities are available to communities across the country.
The government is set to release expectations for a reasonable distance people should travel when depositing and withdrawing cash. It added that cash is the second most frequent payment method in the UK, with 5.4 million adults relying on this payment method.
Economic Secretary John Glen said, ?Millions of people across the UK still rely on cash, particularly those in vulnerable groups, and today we are delivering on our promise to ensure that access to cash is protected in communities across the country.
?I want to make sure that people are still able to use cash as part of their daily lives, and it crucial to ensure that no person nor community across the UK is left behind as we embrace a more digital world.p>
These new rules were initially outlined in the Queen speech last week.
Speaking on the new rules, Alex Richter, head of KYC platform PassFort, said, ?The growth of the digital economy has brought significant benefits for businesses and individuals, but it is too easy for the disadvantaged to become financially excluded. In the UK, it’s estimated that 16% of over 18s don’t own a smartphone, and according to The Office for National Statistics, around 2.7 million UK adults don’t have access to the Internet.
?Primarily using cash due to socio-economic circumstances and financial constraints is likely to result in a lack of a digital identity. However, this does not make an individual a criminal and they should not be penalised because of it.
?Banks and other institutions need to implement technology and modern KYC solutions, enabling compliance professionals to use their expertise and stop those that rely on cash from falling through the cracks.p>
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