THE BANKING regulator has called for a rethink on moves to close branches during the pandemic lockdown.
The Financial Conduct Authority, in urging banks to reconsider closures said they were "concerned" that it could "have significant consequences for customers".
It comes as TSB said that it was forging ahead with closures of 73 bank branches in Scotland and a cut of around 300 jobs despite appeals to save branches in remote and most deprived areas of Scotland.
READ MORE: TSB forges ahead with 73 Scots branch closures - including last bank in a tourist haven
While there has been continued resistance to closing the 'last bank in town' the move will mean shutting down the last remaining bank in the eastern coastal corner of Fife, East Neuk, home to picturesque fishing towns and described as "one of Scotland's hidden gems".
The FCA has now warned the impact of national pandemic restrictions could affect banks' ability to comply with regulatory guidance on closing branches, including consulting customers affected.
It warned that banks needed to "treat their customers fairly, and communicate with them in a fair, clear and not misleading way" and there was an expectation that firms exercise particular care with vulnerable customers.
It said it may be harder than usual to reach all customers under the current restrictions and engage with them on closure proposals effectively.
And it said that some customers may need to access in-branch services to help them prepare for closures but may be unable to do so.
Customers may also need additional help to access online banking and making payments.
"We want firms to review their plans against our existing guidance and ensure that they continue to comply with our principles," the regulator said.
"It may be harder than usual to reach all customers under the current restrictions and engage with them on closure proposals effectively."
The regulator warned banks that if they consider it is appropriate to continue with plans, they would them to be able to demonstrate how they have taken their concerns and expectations into account.
The FCA said banks have to "Communicate with customers in a way that is clear, fair and not misleading to inform them of the closure proposals".
It said particular consideration should be given to the best way to make sure vulnerable and hard-to-reach customers are aware of the proposals and are able to contact the firm.
It said customers should be given "clear information" about how the firm can help them access alternatives during this period of national restrictions, for example support to use online banking.
READ MORE: Is your TSB closing? Full list of axed 73 Scots bank branches
And said that where appropriate, customers should be engaged with "to understand their needs and properly consider how they will be affected by the proposals".
Edinburgh-based TSB confirmed it had begun the process of Scottish closures as part of a UK-wide axing of 164 branches.
Two Scottish branches are due to shut this week in the Pilton area of Edinburgh and Peebles.
It began the process this month with the closure of Grantown on Spey, North Berwick, Castle Douglas, Aboyne, Kelso and Insch.
There had been a battle to stop closures some of the most deprived parliamentary constituencies in the UK which will see them down to their last bank branch.
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