The Combat Poverty Agency has urged the Government to abolish stamp duty on ATM and point-of-sale cards on these accounts.

It also says banks should train staff to be proactive in assisting people to open accounts.

According to the agency, 20% of Irish households lack bank accounts despite a proposal six years ago from the banks to develop a universal one.

It notes some recent progress with Postbank and some credit unions introducing products for low-income consumers.

It says Ireland has the fourth highest level of financial exclusion among the 15 long-standing EU states.

Doing without mainstream and appropriate financial services mostly affects poorer people, says the agency, and many turn to money-lenders.

Paying annual interest rates causes some families to accumulate debt, says agency director Kevin O’Kelly.

He recommends the new account should allow customers to withdraw up to €20 more than is available if necessary.

He also says bank staff should be trained in the variety of documentation that is acceptable for account opening, beyond a driver’s licence or a passport and a utility bill.

News from RTE Ireland >>