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New rules to allow customers to deposit cheques by phone

Lucinda Beeman
Written By:
Lucinda Beeman
Posted:
Updated:
05/12/2014

The Treasury has announced it will change existing legislation to allow consumers to deposit cheques remotely using their phone.

Already used in the US and elsewhere, ‘cheque imaging’ systems allow customers to pay cheques into their bank account by taking a photo on their smartphone or tablet and submitting the image to their bank electronically.

While customers will continue to be able to deposit cheques at bank branches, cash machines, post offices and by post, the Treasury expects this new method to speed up clearing times and increase convenience for customers.

The measure is included in the Government’s Small Business, Enterprise and Employment Bill, introduced today.

Economic Secretary to the Treasury Andrea Leadsom said: “The innovations included in this Bill, including cheque imaging, show the government is determined to keep up the pace of our reforms to create a banking sector that delivers for Britain’s hardworking people and businesses.”

Kevin Mountford, head of banking at MoneySuperMarket added: “This is a clear sign that traditional banking and innovation can go hand in hand, with consumers ultimately reaping the benefits.

“There are some concerns that the new legislation could lead to more bank branch closures as it will give people one less reason to enter their branch. However, branch networks are hugely important and still play a vital role on UK high streets. Cheque imaging won’t be right for everyone, and for those people physical branches will still be vital.”