TITLE: Israel's Bank of Israel Publishes Reform on Household and Small Business Banking Fees
BODY:
On June 21, 2026, the Bank of Israel (BOI) published a comprehensive reform governing fees charged to households and small businesses for payment account management services and debit card fees. The reform aims to simplify banking services, improve price transparency, and enhance competition in the banking sector.
The reform introduces a new standardised "payment account management" service bundling everyday transaction services such as account debits and credits, cash deposits and withdrawals, transfers to other accounts, cheque deposits and withdrawals, and bill payments. Under the new system, banks may charge a fixed monthly fee for up to 100 transactions per month, replacing the previous tiered system established in 2014. The maximum fee for the first 100 monthly transactions is 10 new Israeli shekels (NIS); for accounts with zero to two monthly transactions, the fee is capped at 5 NIS; and each additional transaction beyond 100 is capped at 1 NIS. The service will become the default for all customers without requiring active enrolment.
The reform also regulates debit card fees at a maximum of 7 NIS monthly, protecting vulnerable populations and those unable to access credit cards. This replaces the current arrangement offering three-year fee exemptions conditional on holding a concurrent credit card. Additionally, banks may now create flexible service bundles combining services across departments at full tariff rates, subject to supervisor approval.
The debit card fee regulation takes effect in October 2026, while the new payment account management service enters force in July 2027, though banks may implement it earlier if desired. Banks are prohibited from charging fees for certain services including returned cheques due to technical reasons, account tracing, and estate administration.