Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I and my Department are undertaking a number of key actions to ensure that future changes in the retail banking industry are managed in a fair, transparent and equitable manner for all stakeholders, including consumers.

On Tuesday 23 January, I published the General scheme of the Access to Cash Bill. The purpose of this legislation is to initially preserve the level of access to cash at December 2022 level, excluding subsequent changes due the exit of Ulster Bank and KBC and to establish a framework to provide that any future evolution of the cash infrastructure will be managed in a fair, orderly, transparent, and equitable manner.

The framework consists of regional population and capacity criteria that must be complied with by designated entities, which will be the three large retail banks. The legislation will provide that these criteria can be amended by the Minister following a review of the criteria by the Central Bank. Reviews will have to be carried out following the publication of Census data or if cash demand drops by 15% in a calendar year compared to the previous year. Reviews may also be carried out at the request of the Minister or on the Central Bank’s own initiative.

In carrying out a review, the Central Bank must take must take account of cash demand, population changes, financial inclusion, operating costs related to the cash infrastructure and any other matters the Bank deems relevant.

These provisions ensure that the criteria can be adjusted in response to the demand or need for cash in the State, and will ensure that the framework being put in place is adaptable, allowing costs to adjust in relation to demand.

Separately, my Department is preparing a new National Payments Strategy, which I expect to publish later this year. A key focus of the Strategy is to ensure Ireland has an accessible and innovative payment system as this is vital for our society and economy.

All citizens should be able to participate fully in all aspects of modern life using digital or cash methods of payment. While technology can enable vulnerable groups partake in society in new ways, it should not exclude them. I want to ensure choice is at the centre of our future payments strategy.

The Strategy is also specifically considering the issue of the acceptance of cash and whether the Minister should have the regulatory power to require critical sectors or sub-sectors to accept cash. The policy position on the acceptance of cash by public bodies is also being examined.

I launched a public consultation on the 12 December last which closes on the 14 February.