Enshrining the Right to Cash in Law

In the June issue of Currency News™, our lead article was on laws to protect cash gaining momentum, with specific reference to the euro and a proposal on legal tender status for notes and coins. This month we look at some developments on an individual country basis in Europe regarding enshrining the right to cash in law, both within and outside the eurozone.

In the UK, the Financial Services and Markets Act of 2023 received Royal Assent in June. A late amendment, following pressure from consumer groups, concerned access to cash, and in particular ensuring that people across the country can withdraw and deposit cash for free.

The Financial Conduct Authority (FCA) has been given greater powers over major banks and building societies to ensure reasonable free access to cash is preserved for those who need it. The government has now announced that UK banks will have to ensure access to cash within three miles of most citizens, with those falling below the minimum service level facing a fine. The new rules are expected to take effect next summer. Virtually the whole population already lives within the stipulated range of an ATM or other cashpoint, but this is increasingly under threat as more and more bank branches and ATMs close.