Britain's financial regulator will intervene if banks and other providers close cash machines in areas where there are no alternatives, it said on Thursday.

There was a 40% drop in cash machine withdrawals last year as the COVID-19 pandemic prompted more people to use contactless card payments and shop online, but five million adults still use cash for most of their purchases, the Financial Conduct Authority (FCA) said.

"We are monitoring trends and supervising firms to make sure access is available and we will use the tools at our disposal to ensure this happens," the FCA said in a statement.

The watchdog also said that cash withdrawals have begun to rise as pandemic restrictions lift.

"We expect individual firms to protect the ability of their customers to access cash and other services that meet their needs when they close branches," it added.

UK Finance, which represents banks and building societies, separately said that it has made five commitments to continue to preserve access to cash for consumers and businesses over the long term.

Source: Reuters.com

https://www.reuters.com/world/uk/uk-watchdog-warns-over-hasty-closures-cash-machines-2021-05-13/