Germany's cabinet signed off on a draft law on Wednesday, October 28, which will make it easier for hundreds of thousands of asylum seekers in the country to set up bank accounts, Reuters reports.

Under the new rules, everyone will have the right to access basic banking services, including the homeless and people who fall under the protection of the Geneva Convention on Refugees.

This means that migrants will be able to open accounts at any bank, enabling them to deposit and withdraw cash, carry out bank transfers, set up direct debits and make payments with cards.

"Those who don't have a bank account, don't have good prospects on the labor market. Hunting for a flat is also a problem for many people without an account," said Justice Minister Heiko Maas.

Until now, only a few saving banks, which are publicly owned or controlled, have accepted refugees as customers. Asylum seekers were often turned away by other banks since they had no fixed address or lacked the necessary documents.

Under the draft law, which must be approved by parliament to go into effect, all banks that offer current accounts would be obliged to do so for a wider group of consumers.

The draft law also obliges banks to become more transparent about their charges and make it easier for customers to change bank accounts.