The move affects those customers with basic bank accounts. Basic bank accounts differ from current accounts. While both will give you a cash card in order to withdraw money from cash machines, basic bank accounts don't allow you to go overdrawn or offer other facilities such as cheque books or money transfers. Unsurprisingly it is often the most financially vulnerable in society who can't get accepted for current accounts who use basic bank accounts.
The move will affect millions of account holders with estimates suggesting that those affected will not be able to use 80% of cash machines. Affected RBS customers will only able to make cash withdrawals from RBS, NatWest, Tesco or Morrisons cash machines, or at Post Office branches over the counter.
According to the Daily Telegrpah Lloyds Cash Account holders, another basic account, will only be able to make cash withdrawals from Lloyds cash machines, the bank's branches and Post Offices. They won't even be able to make free withdrawals from Halifax and Bank of Scotland cash machines, despite them being part of the same banking group.
An RBS spokesperson claimed that ''it is unsustainable for us to offer free access to other bank ATMs for basic accounts as we face a charge per bank transaction, which needs to be recovered elsewhere."
According to the BBC ''last year the Nationwide building society told its customers with cash card accounts that they would have to take out a minimum of £100 if they used the counter service in its branches.
And HSBC basic account holders cannot make cash withdrawals at the counter, though they can make other transactions''.