New rules from the Financial Conduct Authority (FCA) that help protect physical access to cash have come into force, with the regulator noting that they’re already positively impacting local communities.

Amid the trend of banks closing down their brick-and-mortar branches, not least due to the continued rise of digital banking and payments, the FCA announced the new rules back in July. This is because around three million people in the UK continue to rely on cash.

Under the rules, banks and building societies must assess whether changes to local services, like closing branches or cash machines, leave local communities lacking ways to take out or pay in cash.

Additionally, residents, businesses, local representatives, and charities who feel there is a gap in cash access can request a review.

LINK, which manages the UK’s cash access and ATM network, will then have 12 weeks to carry out an assessment which examines whether there are gaps in the ability to deposit and withdraw cash.

If there are significant gaps, banks and building societies will need to deliver additional cash services to meet the local area’s needs. These could include banking hubs, cash machines, deposit ATMs and Post Office facilities.

With the rules now in force, 15 new banking hubs will be delivered across the country to ensure access for consumers and small businesses.

The banking hubs themselves are shared spaces where personal and business customers can access basic services and access to cash, with a traditional counter service operated by the Post Office, and community bankers from nine major high street banks.

Deposit services are also available, providing small businesses with a facility to access and pay in notes and coins.

While the majority of the banking hubs will be in England, Scotland will see one new banking hub in the Aberdeenshire town of Huntly, as a result of community requests.

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Speaking on the new rules and cash access, Sheldon Mills, executive director for consumers and competition at the FCA, said: “The way we spend money is changing, and far fewer of us use cash day-to-day.

“We don’t want to stand in the way of change, but we do want to ensure reasonable access for those who continue to rely on cash. Our new rules are already having an impact, protecting vital services for communities across the country.”