Filenews 7 January 2022
The Basic Payment Account shields consumers from increases in bank charges, the Central Bank of Cyprus (CVC) said in a statement, regarding the issue of credit institutions' charges.
On the occasion of a meeting of the House Standing Committee on Energy, Commerce, Industry and Tourism held on January 4, 2022, in which the Governor of the CMP participated, it is noted that the possibility of intervening in the charges of credit institutions provided by the laws of the state concerns only one type of bank account, which is called the 'Payment Account with Basic Characteristics' (YABX) in the relevant Law.
The CACT has already taken advantage of the above possibility, since, as mentioned, it made the relevant study in 2019 and made a recommendation to the Ministry of Finance in February 2020, taking into account, among others, the national income levels. This recommendation, adds the KKK, was fully adopted by the Ministry of Finance through the issuance of Decrees for the determination of reasonable fees. The Decrees include the imposition of a ceiling of €36 in total charges per year, i.e. the equivalent of the maximum charge of €3 per month, on a series of basic services offered through the ESMP and covering all the usual banking needs of an average consumer.
The services, which are protected by the €36 ceiling, include, but are not limited to, account opening, operating and closing, unlimited deposits and withdrawals from Automated Teller Machines (ATMs) and bank cashiers, debit card issuance and unlimited debit card payment transactions. It also covers direct debits, credit card transactions (if offered by the Credit Institution), standing orders and credit transfers to other credit institutions within the European Union (SEPA transfer) that do not exceed €5,000 per operation, with a limitation of 100 transactions in total per calendar year.
In addition, the Decrees impose zero charges for cash withdrawals from EKBX through all ATMs located within the European Union.
Regarding consumers who are considered vulnerable, as defined by the Ministry of Finance, it is noted that there are zero charges for all the aforementioned services.
"Therefore, consumers who wish to be placed under the protection of the annual ceiling of total charges of €36, are invited to contact a credit institution to open an ESBX or to ask the credit institution in which they maintain a current or other type of account that the credit institution has not categorised as ESMP, to convert them into a ESBX", Refers.
In this way, it is noted, consumers are shielded in relation to increases in bank charges: For services through KOVX for which the Decrees provide for a zero charge, credit institutions cannot impose a charge, while for the rest of the services through EKBX any increase in bank charges is limited by the ceiling of €36.
