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Changes to banking code to bring financial relief for farmers

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The royal commission's recommended changes to the Banking Code of Practice kicked in yesterday, heralding a new chapter in Australia's beleaguered financial services industry.

Changes include:

  • Ceasing default interest on agricultural loans while farms are affected by drought or natural disaster;
  • Ensuring services to people with limited English and those living in remote areas are inclusive and accessible;
  • Removing overdraft and dishonour fees on basic, low fee or no fee accounts for concession card holders;
  • Guaranteed features for basic bank accounts.

banking code of practice changes

Australian Banking Association CEO Anna Bligh says the industry's stepped up to the plate to implement Commissioner Hayne's recommendations.

"The banking industry has been working hard to implement the recommendations of Commissioner Hayne's final report, which included important changes to the Banking Code of Practice," Ms Bligh said.

"Initiatives such as guaranteed features for basic bank accounts across the industry and ensuring inclusive and accessible services for people with limited English or who live in a remote area address specific issues raised by Commissioner Hayne is his final report.

The new code of practice follows changes already in effect, including the end of fees for no service and $5.8 billion dollars in remediation.

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David Thornton is a journalist at Money magazine. He previously worked at Your Money, covering market news as producer of Trading Day Live. Before that, he covered business and finance news at The Constant Investor. David holds a Masters of International Relations from the University of Melbourne.
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