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Lloyds, RBC to lift ATM restriction for basic accountholders in the UK

June 13, 2014

Reversing course, RBS and Lloyds have announced that customers who own basic bank accounts will be allowed to carry out transactions at other banks’ ATMs.

According to a report by the BBC, basic accounts do not offer checkbooks or overdrafts and were introduced as a service to customers who have a “checkered” credit history. 

Citing cost, Lloyds and RBS imposed their on us-only ATM rules in 2011, restricting access to off-us ATMs for millions of Britons. In addition to prompting a public outcry, the decision caused consternation within the government and the ATM industry.

ATM operators and Parliament expressed concern that without off-us fees from the millions of blocked basic accountholders, the ATM network in the U.K. would become unsustainable and the available base of cash machines would shrink.

RBS will implement its revised policy by year-end; Lloyds has said that the ban will be lifted for some customers as early as July, the BBC reported.