Rishi Sunak said he thinks the government should not “start imposing on individual businesses how they should run their business.” Credit: Simon Walker/Ministry of Finance
Rishi Sunak said it would be inappropriate to require all stores to accept cash amid fears that the move to electronic payments could isolate some shoppers.
Prime Minister said that while he believes everyone should have access to cash, “it's a different matter if the government starts imposing individual businesses.”
This comes after the government announced earlier this month that banks would be forced to give customers free access to cash within three miles of their home.
Ministers are pushing new laws to preserve paper money and protect deposit and withdrawal services. Banks that fail to comply with access rules face unlimited fines.
Mr Sunak was asked if he supported the idea that traditional banknotes and coins should remain a widespread means of payment in the UK until at least 2050, amid fears that vulnerable people who rely on the use of physical money, may be left behind.
1304 The drastic reduction in the use of cash
He said: “When I was chancellor, I passed the laws that are now passed that guarantee people access to cash, because I understand how important it is ”.
“Of course we are transitioning and using more e-money and doing more things online. But cash is important to people, especially in rural communities like the one I represent.
“The new laws that we have now passed ensure that people are no more than three miles away from accessing cash. The regulator, the FCA [Financial Conduct Authority], will have new powers to fine or force banks to provide these services to people because we know how important they are.”
Asked if people should be able to use cash in stores, Mr. Sunak said, “I think it's right that people should have access to cash. Another thing is when the government begins to impose on individual businesses how they should conduct their business. I don't think that's appropriate.”
Ministers believe the new bank access rules will ensure that the millions of people who rely on cash every day won't have to “walk for hours” for basic banking services.
Banks will be required to provide cash services within three miles of customers in rural areas and only one mile from residents of towns and cities. They will not be allowed to close branches until they put in place alternative provisions to ensure people can still have access to fiat money.
Ministers have given the FCA broad powers to enforce the rules, including the ability collect fees. hefty fines.
The government said that “the growing choice and convenience of digital payments is great,” but it believes that “cash plays an important and permanent role.”
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