Barclays faces accusations of attempting to phase out cash usage with plans to impose strict deposit limits. Starting in July, Barclays will set an annual cap of £20,000 for cash deposits into personal accounts, including children’s accounts linked to them.
This limit will reset each January. Deposits made at both branch counters and self-service machines will contribute to this total.
Former Ukip leader Nigel Farage criticized the policy to The Telegraph, saying, “The banks want to kill cash. Their behaviour is disgraceful.”
Barclays’ approach follows NatWest’s precedent, which introduced a daily limit of £3,000 and an annual threshold of £24,000 last September.
Last year, Barclays was criticized for nudging customers toward a “cashless” society amidst a controversy ignited by Farage after Coutts, a private bank, closed his account citing his controversial views. This incident contributed to the resignation of NatWest’s CEO, Dame Alison Rose, following her involvement in an erroneous BBC report.
While the banks assert that these restrictions aim to combat financial crime and money laundering, critics argue they discourage the use of physical bank branches.
Prime Minister Rishi Sunak emphasized last summer that every resident in the UK should be able to access a cash machine within three miles of their home. However, by the end of 2023, the number of ATMs in the UK had fallen to fewer than 48,000, a significant drop from the peak of over 70,000 in 2016.
A Barclays spokesperson stated, “In our ongoing efforts to combat financial crime and prevent money laundering, we’re informing customers about changes to cash deposit limits starting in July. The new cap is designed to help us detect suspicious transactions while maintaining cash access for our customers.”
A representative from NatWest remarked, “Our commitment to safeguarding our customers, communities, and society against fraud and financial crimes has led us to update our terms. We regularly review and adjust our policies to balance customer needs with our preventive responsibilities.”
The Post Office imposes an annual limit of £10,000 for personal accounts and £240,000 for business accounts. In contrast, Santander has no set limit but may inquire about the origins of large deposits. Similarly, an HSBC spokesman confirmed there are no immediate plans to introduce any limits, although the bank continuously reviews its policies. Lloyds Banking Group also indicated that no changes are currently planned.
Harriett Baldwin, chair of the Treasury Select Committee, expressed concerns, noting, “Despite the trend towards digital cash transactions, it’s vital to consider those who still rely heavily on cash and may struggle to access necessary banking services.”
A spokesperson for the Financial Conduct Authority (FCA) explained, “Banks must minimize the potential for criminal misuse of their services. After raising concerns about laundering risks through cash deposits at the Post Office, banks instituted limits, among other measures. Although some have expanded these limits to include their branches, it is crucial that consumers continue to access cash services at both bank branches and the Post Office.”
