Free-of-charge bank accounts for low-income residents

She says a bank account from which to pay bills and receive income is ‘essential’, although many of the country’s poorest residents do not have one as they cannot afford the charges.

“It’s becoming more and more crucial these days to have an account where you can receive payments – even public transport is paid for using debit or credit cards,” says Sra Calviño.

“For this reason, we’ve launched a new regulation that makes it mandatory for all banks to offer a basic payment account to all residents.

“It will provide the services which are essential in the present day for being connected, financially active, being able to set up direct debits and standing orders, withdraw money from a cashpoint and make certain types of transfer.

“The cost of a basic bank account in general is €3 a month with a maximum fee imposed for transfers and direct debits, but for those residents in a financially-vulnerable situation or at risk of social exclusion, it will be completely free of charge.

“This is another step towards reinforcing citizen protection and to avoid anyone being left out of the financial system.”

The move was agreed upon during the most recent Council of Ministers, a regular meeting held in the Moncloa Palace – the official presidential residence – of all ministry leaders.