The idea of a universal account for Irish citizens was proposed to the Government by the Irish Payments Services Organisation (IPSO), which represents the banking industry, in December 1999. It could become a reality during the term of the next government.

The kind of universal bank account envisaged would not have overdraft facilities or charges and would, therefore, operate at a loss. However, banks and the Government stand to benefit from the introduction of such a system as a reduction in paper-based transactions brings down costs and increases efficiency.

The establishment of a universal account would make it possible for adults to use electronic payments technology. Access to this account would be card-based, through ATMs and retailers. The universal account would be made available on a non-competitive basis to each adult, the Department of Finance/Central Bank strategic review states.

These accounts would be managed centrally by an arm of the State or by the central payments system companies on a not-for-profit basis. They would be financed by charges levied for social welfare and salary payments made to the accounts. IPSO has been involved in discussions with the Department of the Taoiseach to study how the proposals would operate. Among the issues under consideration are:

the need for easy access to any universal account arrangement by citizens;

the cultural and societal acceptability of the proposals;

the right of all financial institutions to participate in electronic payment systems;

the need for the financial institutions to cooperate more closely in the area of electronic payments and clearing systems;

the role of An Post in any new arrangements;

the administrative costs associated with the proposed arrangements;

identifying the range of options regarding a gradual move to e-payments by Government; and

the need for discussion with the social partners, particularly regarding salary payments.