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nid 93376
Jun 21, 2026
rghosh@vixio.com
Israel
BOI - Press Releases
financial services
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1825 charsIsrael's Bank of Israel Publishes Reform on Household and Small Business Banking Fees
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.
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2719 charsBank of Israel Reforms Payment Account Management Fees and Debit Card Charges
On June 21, 2026, the Bank of Israel published a press release announcing a reform of the fees charged to households and small businesses for payment account management services (including current accounts) and immediate debit (debit) cards. The reform enters into force on a staged basis in October 2026 and July 2027.
Key elements of the reform include:
Introduction of a new "payment account management" service that consolidates all basic day-to-day current account services, including account credits and debits, cash deposits and withdrawals, transfers to other accounts, cheque withdrawals, redemptions and deposits, and voucher payments. Banking corporations may charge individual and small business customers holding an active payment account a fixed "payment account management" fee covering 100 transactions per month, an increase from the existing basic tier of 10 self-service transactions and one counter transaction. he new charging method enters into force in July 2027, though banking corporations that wish to do so may implement it earlier.
The Bank of Israel sets the following maximum regulated prices within the payment account management service: a maximum fee of NIS 10 for the first 100 transactions in a month. a maximum fee of NIS 5 where between zero and two transactions are carried out in a month. a maximum fee of NIS 1 per transaction for each additional transaction beyond 100.
a maximum fee of NIS 10 for the first 100 transactions in a month.
a maximum fee of NIS 5 where between zero and two transactions are carried out in a month.
a maximum fee of NIS 1 per transaction for each additional transaction beyond 100.
Introduction of a regulated cap on the monthly immediate debit card fee, set at a maximum of NIS 7, replacing the existing arrangement under which customers holding a concurrent credit card received a three-year exemption from the debit card fee. The cap enters into force in October 2026 and extends protection to a broader population for a longer period, including customers from vulnerable groups and those refused credit cards for whom the immediate debit card is the only means of conducting digital transactions.
Provisions for banking corporations to offer flexible service packages that combine services from different sections of the full tariff, including the payment account management service, into a single bundle tailored to customer needs. Banking corporations require the approval of the Supervisor of Banks before adding such packages to their tariff schedule.
Prohibition of the charging of fees in respect of the following: returning a cheque for technical reasons; account location services; and the handling of inheritances and estates.