Banks may be forced to reinstall ATMs under new access-to-cash law 

While the total value of cash withdrawals fell by 33% since the start of the pandemic, some 73% of Irish adults still use ATMs regularly. Stock picture: PA

Banks and ATM operators could be forced to reinstall cash machines in towns and villages under new access-to-money laws.

Finance Minister Michael McGrath is finalising draft legislation that would guarantee that the public and businesses have access to cash.

The laws will set down maximum distances between cash machines in rural areas so that people do not have to travel far to withdraw funds.

However, in larger towns and cities the legal requirements for ATMs would be linked to population.

Separately, Mr McGrath is setting out “essential services” that would have to provide customers with the option of paying in cash. This list is likely to include grocery shops and pharmacies.

This national payment policy is also expected to require public services to accept, or facilitate the acceptance of, cash.

It comes after NCT operator Applus+ controversially announced earlier this year that the vehicle-testing service would be moving to cashless payments.

However, the company was forced to reverse this decision after a number of political interventions, including from the minister of state at the Department of Transport, Jack Chambers.

Finance Minister Michael McGrath is finalising the Access to Cash Bill which will set a minimum number of ATMs required per head of population in towns and cities, and maximum distances between cash machines in rural areas. File picture: Damien Storan/PA

While the move towards contactless payments accelerated over the pandemic — rising to 84% of all point-of-sale transactions — Mr McGrath is adamant that people should have the option to pay in cash.

Ahead of the new strategy coming into force, the minister has written to all Government colleagues to ask that bodies under their aegis maintain existing payments.

“It is my expectation, now, that all public bodies that currently accept or facilitate the acceptance of cash should continue to do so,” Mr McGrath told ministerial colleagues in September.

According to the Central Bank, 73% of Irish adults use ATMs regularly, but the cash total of withdrawals has fallen by 33% since early 2020 and the start of Covid-19.

Despite changing patterns, Mr McGrath wants to ensure that access to cash remains protected and is pressing ahead with the Access to Cash Bill.

Campaigners say that having access to cash is particularly important to the elderly, those on lower incomes, and other vulnerable groups.

Age Action has reported that 65% of people over the age of 65 experience digital exclusion, which has an impact on their ability to access online banking or contactless payments. This means they are more reliant on cash.

Almost 30% of social welfare recipients continue to receive payments in cash through the local post office.

This legislation is at an advanced stage and will be published “relatively soon”, say sources.

They have pointed out that basing the guidelines on distance across the entire country could result in large queues at cash machines in urban centres and so a two-pronged approach will be taken.

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As well as combining different metrics to ensure there are adequate services across the country to meet need, the Access to Cash Bill will require ATM operators and cash-in-transit companies to be authorised and supervised by the Central Bank of Ireland.

The legislation follows on from the recommendations of the retail banking review, which was published in November 2022. The last national policy in this area was set out in the National Payments Plan in 2013.

Since this time, the banking and payments landscape has changed significantly in Ireland.

The number of banks serving the sector reduced from 12 to three as financial institutions were amalgamated or closed down and foreign-owned entrants exited the Irish retail market.