600 free cash machines to be installed in low income areas

600 free cash machines to be installed in low income areas

	Published : Thu, 14 Dec 2006 09:45 By : Richard Owen Print this Story

LONDON: Over 600 new non-charging cash machines will be installed in low income areas throughout the U.K. under an agreement between banks, the government and cash machine operators.

The ATM Working Group comprising representatives of leading banks, building societies cash machine operators and the treasury, which facilitated this program, said poorer segments of the society will now be able to access bank accounts and cash easily and cheaply. Under the agreement, banks and building societies will pay a premium to other banks and cash machine operators to set up and maintain ATMs at the new sites and compensate them for running a machine in lower use areas.

John McFall, Labour MP and head of the ATM Working Group, described the agreement as a major step in the achievement of an important public policy objective.

Royal Bank of Scotland said it will be opening 300 new free-to-use ATMs and HSBC said it would install 100 free ATMs in the targeted areas. Link, the network that connects almost all the cash machines in the country, said other banks to commit to the program are HBOS, Bank of Ireland, The Co-operative Bank, Sainsbury's Bank and Tesco Personal Finance.

There are more than 60,000 cash machines in the country and nearly 44 per cent of them charge a fee. Link said only 4 per cent of cash withdrawals are made from the pay-to-use machines, which charge on an average 1.50 pounds per withdrawal regardless of the size of the amount withdrawn.

McFall, who is also chairman of the House of Commons treasury select committee and who persuaded the major banks to agree to this program, had said the concerned agencies, including the watchdog, have been passing the buck in solving the issue.

The ATM Working Group and banks said clear signs will be displayed at the ATMs indicating whether these are free or pay-for-use ATMs. The new ATMs will be largely located in post offices, council buildings and community stores.