Post Office to continue handling cash for 3 years

The Post Office has secured agreement from 30 UK banks, building societies, and credit unions to continue handling bank account cash deposits and withdrawals for a further three years.

The postal service said the move, which follows months of negotiation, would safeguard the millions of people and small businesses that rely on cash.

The agreement comes amidst a backdrop of bank branch closures which have sparked concerns about a dwindling access to cash for businesses, older people, and vulnerable members of society.

“This agreement provides a continued lifeline to the millions of people and small businesses that rely on cash nationwide,” said Nick Read, chief executive, Post Office. “It highlights the unique and vital role that the country’s Post Offices play in local communities and economies.”

He said that while banks are cutting their branch networks, Post Offices are seeing a rise in deposits and withdrawals.

"There's a great range of choice available to customers carrying out their everyday banking, and we’re really pleased that the Post Office will continue to provide one important option, having provided banking services to our customers for over 20 years,” said Russell Galley, managing director of Halifax, Lloyds Banking Group. “We know the service is really valued by communities, giving people and businesses another way to manage their accounts, make payments and access cash."

Under the new agreement, known as ‘Banking Framework 3’, customers of 30 bank and building society brands will continue to be able to use Post Offices to withdraw and deposit cash in their accounts. They can also deposit cheques and make balance queries.

The agreement runs from 1 January 2023 to 31 December 2025.

“The Government recognises that physical access to banking continues to play an important role in many people’s lives,” said John Glen MP, economic secretary to the Treasury. “That’s why I am pleased to see that 30 banks, building societies and credit unions have again signed up to the Post Office Banking Framework Agreement.

“The Post Office, with its presence in local communities across the UK, plays an important role in the levelling-up agenda and this agreement will continue to allow 95 per cent of business and 99 per cent of personal banking customers to carry out their everyday banking, including withdrawing and depositing cash, at 11,500 Post Office branches in the UK.”

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