A Bill obligating banks to provide ATMs in certain areas, including in rural areas, has been passed in the Dáil. The Government Bill will also empower the Central Bank to address issues affecting those accessing cash. The Finance (Provision of Access to Cash Infrastructure) Bill 2024, which was introduced following a recommendation made by the Retail Banking Review in November 2022, will now proceed to the Seanad.
Under the proposals, banks must ensure that, in each of the State’s eight regions, there must be a specified number of ATMs per 100,000 people; that a specified percentage of the population must be within no less than 5km and no more than 10km away from an ATM; and that a specified percentage of the population must be within no less than 5km and no more than 10km of a cash service point – either a bank branch or a post office.
The 2022 Government review found that the majority of people in Ireland wanted to have the option to pay in cash, even if some had a preference for digital as a means of payment. The department of finance said that only 11 per cent of consumers do not use cash, and that notwithstanding the increased use of debit cards, cash spending in-store relative to total spending still stands at 31 per cent. The report did note that cash usage has been in decline, and that since 2015, the number of ATM transactions has declined by 46 per cent while the use of debit cards at the point of sale has increased by 284 per cent.
Card payments accounted for 62.4 per cent of the total number of payment transactions in 2021, the report noted, with contactless payments reaching their highest level since data started being collected in 2017.
The report, however, said that it was important to ensure that the decline in cash did not outpace the needs of society and the economy – saying that cash continues to be important to ensure that consumers can budget effectively and do not experience financial exclusion, particularly those over 65.
The report noted that cash continues to be preferred by many consumers and small to medium enterprises, and remains the main money management tool for many who are less well off, as well as allowing individuals, including those who are older, to control their own finances thereby reducing the risk of financial abuse or financial dependency.
However, the report noted that there are costs associated with cash infrastructure that need to be considered. It noted that a drive to reduce costs has incentivised some traditional banks to move away from cash services – leading to the closures of branches, closures of ATMs and removal of cash services in branches.
The Bill also places certain obligations on the three main retail banks, and outlines that access to cash will be maintained, initially, at December 2022 levels.