The Royal Bank of Scotland has decided upon the disgraceful act of banning its users of their free basic bank account from using rival companies' cash machines.
The basic bank account is available to those who may not otherwise be able to open another account, carries no charges and is offered by all UK banks as part of a commitment to 'financial inclusion'.
Marie Burton, financial inclusion expert at Consumer Focus, said: "This is a kick in the teeth for many of RBS's most vulnerable customers. We would call on RBS to reconsider this move, which will exclude its basic bank account holders from using the majority of the UK's free cash machine network.
"Although there are still nearly a million people without bank accounts, the banking sector has been working hard to steadily reduce this figure. Short-sighted moves like this will only help to reverse the good work that has been done. People living in rural areas deserted by bank branch closures may not have the option of other ATMs nearby."
Dominic Lindley, principal policy adviser at Which?, said: "This change will increase financial exclusion as it leaves basic bank account holders at RBS unable to access around 80% of the free cash machines in the UK. These account holders will be inconvenienced and might incur extra costs when travelling to find a cash machine they can use."
Michael Ossei, lending expert at uSwitch.com, added: "This move is going to leave the most vulnerable customers stuck between a rock and a hard place. Unless they are able to qualify for a better bank account, they will have no option but to use a limited number of cash machines.
"This will hit those customers who do not live or work in the vicinity of an RBS cash machine particularly hard and could result in them incurring extra travelling costs just to be able to take money out. And with 318 RBS branches being sold to Santander, this is only going to get worse rather than better."
An RBS spokesman said: "RBS is fully committed to offering a free basic account for people who may otherwise struggle to access banking services. Our basic account customers will continue to have free access to one of the largest cash machine networks in the country, including RBS, NatWest and Tesco ATMs, and can withdraw cash from more than 11,000 post offices across the UK."
Halifax, which operates the most popular no-frills account in the UK, said it had no plans to restrict ATM usage among its customers, stating: "Our account has always been free and remains free." Santander also said it had no plans to introduce an ATM fee or to ban use of rival machines for its basic account-holders.
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