The Government, the banks and the Irish Payment Services Organisation (IPSO) are to reactivate the proposal to develop a universal bank account.

The decision emerged during a meeting held yesterday to explore ways of improving access to financial services for low income groups.

The Minister for Social, Community and Family Affairs, Seamus Brennan, met representatives of the Irish Bankers' Federation and IPSO yesterday, in the wake of the recent report, Do The Poor Pay More? by the lone parents group, Open.

The report said some lower income households found it difficult to open bank accounts and were being preyed upon by moneylenders, some charging interest of up to 200 per cent.

At the meeting, the federation agreed to communicate with member retail banks concerning the ID people needed to produce when opening accounts.

Documents such as an ID form signed by a Garda, or a letter from a person in a position of social responsibility, can be used.

Mary O'Dea, the consumer director of the Financial Regulator, has said some bank staff do not seem to be aware of the range of documentation which can be used for ID when opening accounts.

Mr Brennan and the two organisations represented at yesterday's meeting committed themselves to working together, and with other governmental and non-governmental stakeholders, in reactivating the universal bank account project.

First proposed in 2002 by the bank industry, the accounts would provide basic access to the payments system enabling all citizens to make and receive payments electronically.

The service would be delivered by the banks as a card-based service, in conjunction with An Post.