The Treasury Select Committee (TSC) has urged Royal Bank of Scotland and Lloyds Banking Group to relax its restrictions on customers withdrawing cash from rival-owned ATMs
Basic current account holders with RBS and Lloyds are currently bound by terms and conditions to only withdraw money from cash machines at branches of the state-owned banks.
The TSC believes the strict conditions could result in banks charging competitors' customers to access their money and warned that a lack of usage could signal a fall in the number of available ATMs outside branches.
A spokeswoman for RBS Group said: "RBS will look closely at the committee's report. We remain committed to offering a free basic account for people who may otherwise struggle to access banking services."
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Find and compare basic bank accounts - Basic bank accounts were originally set up to help those who have problems opening a normal current account due to a poor credit score or no credit history.
ATM stands for an automated teller machine or automatic teller machine (ATM), also known as a cashpoint, cash machine or a hole in the wall.
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