The lobby group added that it recognises the “vital importance of cash for many consumers and small businesses” but it is also “mindful of the decline in ATM cash withdrawals”.

“The BPFI and its member banks are committed to ensuring there is reasonable access to cash both now and in the future in accordance with consumer demand,” the organisation said.

ATM withdrawals have fallen by 32% since the pandemic, according to the Central Bank. This may indicate a trend among consumers to spend money digitally or that some people are becoming more conscious of their spending amid a volatile economic environment.

The comments made by the BPFI, which has over 125 member institutions and associates, followed the publication of the General Scheme of the Access to Cash Bill which was approved by government.

The Bill stems from a recommendation made by the Retail Banking Review, published last year.

The Review highlighted the use of cash for consumers in terms of financial inclusion, budgeting and security in the event of a cyber attack that could impact a bank.

“Although cash usage has declined in recent years, and this decline accelerated during the pandemic, it is important to protect its role in our society and economy in the future,” said Finance Minister Michael McGrath.

“In the absence of a legislative intervention, it is likely that over time we would see more and more ATMs removed from communities across the country and I do not want to see this happen,” he added.

The legislation will for the first time regulate ATMs with the objective of improving operational standards and ensure good customer service.

The legislation comes following backlash to AIB’s plans to remove ATMs in 2022.