AIB has reversed its decision to end cash services at 70 branches around the country.

There had been backlash from businesses, consumers and rural organisations and politicians.

The bank said it had decided not to proceed with the proposed changes in recognition of the unease that it has caused.

One of Ireland's biggest banks has scrapped plans to remove cash services from 70 of its branches.

Earlier this week Allied Irish Banks (AIB) had announced that counter staff at those branches would no longer deal with cash, cheques or bank drafts.

However in a U-turn the bank has decided not to proceed with changes because it “recognises the customer and public unease that this has caused”.

A spokesman said the original proposals had been in the context of the “dramatic increase in the use of digital banking services and a decline in branch visits and cash usage”.

There had been some backlash to the move from business groups, consumers, farming and rural organisations and politicians.

Taoiseach (Irish Prime Minister) Micheál Martin had called on AIB to reconsider the move as many people, particularly older customers, still need cash facilities.

The company has 170 branches across the Republic of Ireland, 22 of which are already cashless.

A bank spokesman said the original decision was taken in the context of the evolving banking environment and the opportunity to enhance its long-standing relationship with An Post.

"In recent years there has been a dramatic increase in the use of digital banking services and a decline in branch visits and cash usage," he said.

"In AIB's case, there are 2.9m daily digital interactions compared with 35,000 customer branch visits.

"There has been a 36% decline in cash withdrawals from ATMs and a 50% fall in cheque usage over the past five years."

The bank has seen a fall of almost 50% in branch over-the-counter teller transactions.

Mobile and online payments have increased by 85% in that same timeframe.

"The bank continues to retain its 170-strong branch network in its entirety and will also continue to offer banking services through its relationship with at An Post at its 920 post offices nationwide," the bank added.

Irish Minister for Finance Paschal Donohoe said he welcomed AIB's decision not to go ahead with the proposed changes.

In a statement, he said that banks have "a key role in maintaining the flow of cash through the economy and ensuring appropriate access to retail banking services for all in society, including the vulnerable."

In a statement, before AIB's reversal, the regulator said that it expected banks to consider carefully the impact of its decisions, with a consumer-focused approach.

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