Banks are to begin dispensing lower denomination notes from ATMs later this year in a move partly designed to facilitate those on lower incomes and social welfare.
Cash dispensing machines are currently restricted to €20 and €50 denominations in the vast majority of cases, contrary to the norm in Europe where €5 and €10 are routinely available. Critics of the Irish system say that those on tight budgets are unable to access smaller amounts when needed.
Details will be published as part of the wider National Payments Plan, a sector-wide policy document promoting efficiencies in financial transactions, this Wednesday.
Labour TD Ciaran Lynch had previously queried the issue with Central Bank officials and believes it will be a welcome move. “Where it is particularly problematic is if you are on small wages or social welfare; if you have €69 inside your bank account and take out €50, it means your other €19 is locked away until more money goes into your bank account,” he said.
“For people who are on jobseeker’s benefit that is a significant amount. The smallest that comes out is €20 and that is if you are lucky.”
Percentage
However, it is understood that a trial scheduled for later this year will see banks begin by stocking just a percentage of machines with €10 notes. The extent to which all ATMs will dispense smaller denominations following the trial is not yet known.
The change would likely have its pros and cons for banks: on the one hand it would cost money to broaden the denominations available, and yet it would almost certainly boost ATM usage, leading to an increase in charges.
A source close to the initiative said that one of the reasons smaller notes are not currently dispensed is that they wear out more quickly due to a greater frequency of circulation.
