Romanian Banks Keep Cash Transaction Fees Unchanged

Romanian banks have decided not to raise fees for cash transactions, as announced by the Romanian Banking Association (ARB) on Monday.

“The Romanian Banking Association has informed the government that banks in Romania have not increased the fees related to cash transactions in the context of the entry into force of the law amending the limits on cash payments and collections. The banking system supports the increase in financial inclusion in Romania, which currently stands at only 69%, the lowest among European Union countries,” according to an ARB statement.

The Romanian Banking Association states that it does not interfere in any way with how banks decide and implement their commission fee policy, and that the commercial policy of banks is the subject of analysis by each credit institution, in accordance with its statute.

“Banks understand the concerns of a portion of the population and companies regarding the criteria established by the law adopted by authorities and respond to customers with products and services. Thus, cash deposits into one’s own accounts are generally free, especially at multifunctional ATMs. Card payments at POS terminals are commission-free for payers, as well as cash payments into providers’ accounts through multifunctional ATMs (MFM),” the ARB statement further explains.

The Romanian Banking Association also supports “the European authorities’ goal of increasing collections through electronic payment methods to reduce tax evasion.”

“In their regular transactions, 4% of Romanians use only cards, 26% use cards more frequently, 34% use cash and cards equally, 23% use cash more often, and 13% use cash exclusively,” says the Romanian banking association, citing data from the market research.

“The Banking System in the Perception of Romanians: Romanians’ Credit and Financial Inclusion,” conducted in 2022 by the Romanian Institute for Evaluation and Strategy (IRES). Additionally, about 46% of Romanian bank service users make payments through Internet/Mobile banking, an increase of 70% compared to the share of Romanians who made payments in this way in December 2020, which was 27%”, according to the ARB.

The banks had threatened to raise fees for cash transactions after the Government had decided to cap the the cash payment. Now that the Government stepped back, the banks changed their minds, too.