Universal bank moves step nearer

THE Post Office universal banking system moved a step closer to becoming reality today as agreements were cemented with computer operators and draft contracts were drawn up with the 11 banks and building societies involved in the project.

The Post Office seems to have defeated Treasury attempts to limit the number of benefit claimants eligible for its basic offer, the Clear card. 'Any concept of rationing appears to have gone away,' said a Post Office source.

Universal banking is the by-product of the Government's plan to make all benefit payments electronic by 2003 but it has been dogged with problems. Leading banks and Nationwide building society have agreed to provide £180m for the project, which will see post office counters offering basic accounts from 11 lenders as well as the Clear account.