Dáil Éireann Debate, Tuesday - 5 July 2016
149. Deputy Willie Penrose asked the Minister for Finance when the Central Bank will authorise credit unions to deploy automatic teller machines and credit and debt card facilities, given that this has been subject to evaluation and assessment for up to four years in consultation with the Central Bank; and if he will make a statement on the matter. [19707/16]
View answerThe 1997 Act and related statutory instruments set out the services that a credit union may provide to its members. Where a credit union wishes to provide services to its members, in addition to the services that are provided for under the 1997 Act, an application may be made to the Central Bank for approval to provide such additional services in accordance with the provisions set out in sections 48-51 of the 1997 Act.
I have been informed by the Central Bank that it is supportive of credit unions developing additional services and it has indicated to credit unions that where they are considering offering debit card services to its members, the credit union should, in the first instance, contact the Registry of Credit Unions to inform them of any such proposals. Furthermore in respect of debit cards, the Central Bank states that it has been clear in its engagement with credit unions and other stakeholders who are seeking to offer this service, that it must be supported by the appropriate payment account service. Consequently a full service payment account service has been recently developed by the Registry of Credit Unions in conjunction with a group of credit unions to allow eligible credit unions to offer these accounts and associated payment instruments such as debit cards. This service is subject to formal application and approval as an additional service under sections 48 to 51 of the Credit Union Act 1997. To date no credit union has been approved for a full service payment account, however the Central Bank is currently at an advanced stage with a number of applications.
I have been further informed by the Central Bank that the provision of Automatic Teller Machine services to credit union members does not require regulatory approval and has been an exempt service since 2004 (SI 223 of 2004). A large number of credit unions have not sought to exercise this option. Regarding credit cards, there has been no engagement from individual credit unions, representative bodies or other stakeholders in respect of credit cards, nor has this area ever been highlighted as a business priority.
