After the Central Bank and the Ministry of Finance invites the customers of the banks to open or activate the basic bank account in order to benefit from the annual ceiling of 36 euros in the imposition of charges when conducting banking transactions.
The Ministry of Finance states in an announcement that the Minister of Finance, exercising the powers provided to him by the Law on Comparability of Fees, the Change of Payment Account and the Access to Payment Accounts Law of 2017 (Law 64 (I) / 2017), issued Decrees , which came into force on 2/11/2020, on the establishment of reasonable fees for accounts with basic characteristics.
Prior to the issuance of the decrees, a study was prepared by the Central Bank of Cyprus, following a relevant request of the Minister of Finance, in accordance with the provisions of the law. The study took into account national income levels, the average fees charged by credit institutions in Cyprus for services provided in connection with payment accounts as well as the practices of other Member States.
The relevant Decrees continue to apply and provide for the following:
(a) The setting of a maximum fee of € 36 per year in a Payment Characteristics Account (IAS) per consumer, without limitation of transactions for most services (account opening, operation and closing as well as deposit of funds) as well as a minimum number of transactions, amounting to 100 per year, for other payment services (direct debits, credit card payments, etc.) and which relate to services within the European Union and for amounts per transaction under € 5,000.
(b) The zero charge for withdrawing money from ATMs within the European Union, independent Bank.
(c) The zero charge for the minimum number of transactions, for which the API will charge only reasonable fees to all of the Recipients of the Minimum Guaranteed Income.
The Ordinances ensure reasonable charges for most banking services provided to consumers.
The public is invited to contact their credit institutions for the determination of the basic account (LPVX), so that they can benefit from the provisions of the Decrees, if they have not already done so.
YPOIK reminds that each consumer / customer can determine a basic account (LPVX) regardless of the number of credit institutions that cooperates. The basic account (LPVX) can also be a joint account, but it can not be an account that is linked to any credit facility (eg current account limit, credit card, etc.).
It is noted that, according to the acquis communautaire, apart from the basic accounts (LPVX), the other charges of the banks are in the policy of each credit institution and the Minister of Finance has no right to intervene in their determination.
