Hungarian Cash Withdrawal Limits: New Law Published
- Here's a summary of the provided text, focusing on the key takeaways:
- Hungary is increasing the limit for free monthly cash withdrawals from HUF 150,000 to HUF 300,000, effective February 1st.
- They argue it will increase their costs due to the transaction fees they have to pay (increasing from HUF 1,350 to HUF 2,700 per account if the new...
Here’s a summary of the provided text, focusing on the key takeaways:
Hungary is increasing the limit for free monthly cash withdrawals from HUF 150,000 to HUF 300,000, effective February 1st. Customers can still withdraw the full amount up to two times a month.
Banks are protesting this change. They argue it will increase their costs due to the transaction fees they have to pay (increasing from HUF 1,350 to HUF 2,700 per account if the new limit is fully utilized). They believe these costs will ultimately be passed on to customers through othre fees.
Though, cash withdrawals are decreasing in popularity. Card payments are becoming much more common – peopel spend 2.5 times more using cards than withdrawing cash. New speedy payment solutions are also gaining traction.
The government seems to be subtly encouraging cash use. Recent actions include:
* Adding the right to pay with cash to the constitution.
* Mandating ATM installations.
* Requiring banks to have at least one ATM in every settlement.
The increase in the free withdrawal limit may not be widely needed. The text suggests that many people aren’t hitting the current limit, and the trend is towards cashless transactions.