Opinion of the European Central Bank of 14 July 2025 on the elimination of certain fees related to payment accounts and cash withdrawals (CON/2025/17)

OPINION OF THE EUROPEAN CENTRAL BANK of 14 July 2025 on the elimination of certain fees related to payment accounts and cash withdrawals (CON/2025/17) Introduction and legal basis

On 15 May 2025 the Government of the Republic of Croatia sent to the Croatian Parliament for parliamentary procedure a draft law amending the Law on comparability of fees related to payment accounts, payment account switching and access to basic accounts (hereinafter the ‘draft law’). The European Central Bank (ECB) has not been consulted by the Croatian authorities on the draft law . The ECB has decided to deliver an own initiative opinion on the draft law. The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union and Article 2(1), second and fifth indents, of Council Decision 98/415/EC , as the draft law relates to means of payment and payment and settlement systems. In accordance with Article 17.5, first sentence, of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

1. Purpose of the draft law

1.1 The draft law prohibits certain fees that may currently be charged by credit institutions in respect of the opening, managing and closing of accounts, using online or mobile banking, depositing and withdrawing cash at counters and automated teller machines (ATMs), receiving cash payments in euro from Croatia or abroad, issuing and using debit cards and paying with cards at points of sale. According to the draft law, these services can be provided free of charge in one of two ways: (1) by opening a basic account or (2) by contracting with a bank for the provision of a package of free services for the account to which citizens receive their salary, pension, scholarship or other regular income. 1.2 Fees on basic accounts 1.2.1 The draft law provides that a credit institution may not charge a consumer who holds a basic account and who belongs to a vulnerable group a fee in respect of the following services: (1) opening, maintaining and closing a basic account; (2) internet or mobile banking services at the choice of the credit institution; (3) the deposit of cash into a basic account at a counter or ATM, with the exception

of the processing of coins; (4) the withdrawal of cash from a basic account at a counter or ATM of the credit institution holding the basic account; (5) the inflow of national and cross-border payment transactions in euro; (6) the regular issuance of a debit card and its use; and (7) the execution of payments by debit card at physical points of sale. 1.2.2 A credit institution is obliged to enable a consumer belonging to a vulnerable group, on a monthly basis and free of charge, to perform ten national and/or cross-border credit transfers (including instant credit transfers and standing orders) and/or direct debits in euro from the basic account for which the credit institution otherwise charges the consumer a fee according to its usual pricing policy. The number of free payment transactions excludes credit transfers that are not made in branches of the credit institution or via internet or mobile banking. Fees charged by a credit institution to a consumer belonging to a vulnerable group for the execution of payment transactions that exceed this number must be reasonable. For services that the credit institution provides to the consumer in addition to the basic account, and which are not specified in the draft law, the credit institution may charge the consumer a fee if it otherwise charges it according to its usual pricing policy for a payment account that is not a basic account, in an amount that for an individual service cannot be higher than the fee it normally charges for each individual service. If a credit institution refuses to execute an authorised payment transaction because there are insufficient funds in the consumer’s basic account, the credit institution may not charge the consumer a fee for that transaction or for refusing to execute the transaction. 1.2.3 An overdraft is not allowed on a basic account. If the consumer’s basic account is brought into a negative balance for any reason, the credit institution may not charge the consumer interest on the negative balance. 1.2.4 The draft law provides that a credit institution that, according to the audited annual financial statements for the previous year, has total assets of more than EUR 1.99 billion is obliged to offer consumers a basic account, while other credit institutions can offer a basic account at their discretion. 1.3 Free service package 1.3.1 The draft law introduces a new option in the form of a ‘free service package’, under which, in general, the services described in paragraph 1.2.1 would have to be provided free of charge. This option is possible for existing current accounts to which regular income is received and will be triggered at the consumer’s request. Under this option, the credit institution will, at the client’s request, arrange an overdraft whose effective interest rate must not be higher than for other payment accounts. 1.3.2 Credit institutions are required to enable clients who already have an open current account to use the free service package without changing the International Bank Account Number (IBAN). 1.3.3 These provisions on free package services apply to credit institutions which offer payment account services to consumers in Croatia. 1.4 Establishment of a national ATM network 1.4.1 Regarding withdrawal of cash, a credit institution is obliged to enable a consumer to withdraw cash from the payment account containing the free service package, or to enable a consumer belonging

to a vulnerable group to withdraw cash from a basic account, twice a month, free of charge, at an ATM of any other credit institution in Croatia that is not the credit institution in which the consumer has the payment or basic account. As noted in the explanatory memorandum accompanying the draft law, this provision is part of an initiative to establish a national ATM network in Croatia that would allow citizens to withdraw money from ATMs of any bank without charge. This initiative is a response to citizens’ needs for better availability of cash services, cost reduction and the strengthening of financial inclusion, especially in areas where access to ATMs is difficult. In this regard, it is planned that the Croatian Government, Hrvatska narodna banka (HNB) and the credit institutions will sign a memorandum defining a framework for cooperation with the aim of establishing a single, interoperable ATM network throughout Croatia, which should be fully functional no later than 1 January 2027. The national ATM network will be considered established if, as of 1 January 2027, credit institutions ensure that consumers can withdraw cash from ATMs free of charge. Once the national ATM network is established, the fees that credit institutions currently charge consumers for withdrawing cash with debit cards from the ATMs of other credit institutions will be abolished and all ATMs in the national ATM network will be considered credit institutions’ own ATMs. The draft law provides that if the national ATM network is not established by 1 January 2027, credit institutions will have to enable consumers, as of 1 January 2027, to withdraw cash from a payment account containing a package of free services twice a month, free of charge, using an ATM of any other credit institution in Croatia that is not the credit institution at which the consumer has a payment account containing a package of free services.

2 General observation

This opinion is limited to specific observations concerning the impact of the draft law on free of charge withdrawals of cash from ATMs. This opinion does not address issues that fall outside the ECB’s fields of competence, including, in particular, issues concerning consumer protection or competition issues outside the ECB’s fields of competence.

3 Free of charge withdrawals of cash from ATMs

3.1 The ECB welcomes the provisions of the draft law ensuring the withdrawal of cash free of charge from ATMs, which help to preserve the effectiveness of the legal tender status of euro banknotes. The ECB considers it important that all Member States put in place appropriate measures to ensure that credit institutions and branches operating within their territories provide adequate access to cash 4 5 services . This is crucial to facilitate the continued use of cash . Sufficient and effective access to

cash is necessary to preserve the effectiveness of the legal tender status of cash. If citizens do not have easy access to cash, they will not be able to use it as a means of payment and store of value . 3.2 The ECB welcomes the initiative to establish a national ATM network in Croatia, which would facilitate sufficient and effective access to cash throughout Croatia. Upon the establishment of a national ATM network all residents in Croatia will be able to withdraw cash free of charge from ATMs in a convenient manner. To achieve the objective of facilitating sufficient and effective access to cash throughout Croatia, it would be important for the national ATM network to maintain an adequate number of ATMs and ensure their appropriate geographical spread. The ECB also welcomes the prohibition on credit institutions charging for ATM cash withdrawals from basic accounts and accounts for which the ‘free services package’ has been opted into, alongside the provision enabling consumers who choose to opt into the ‘free services package’ to withdraw cash twice a month, free of charge, from an ATM of any other credit institution in Croatia, which are first steps towards the establishment of a national ATM network. 3.3 In this context, it is recalled that on 28 June 2023 the Commission published a proposal for a Regulation of the European Parliament and of the Council on the legal tender of euro banknotes and coins (hereinafter ‘the proposed regulation on the legal tender of euro cash’), which includes an obligation for Member States to ensure sufficient and effective access to cash throughout their territories. The proposed regulation on the legal tender of euro cash provides that, following its adoption, the Commission will adopt implementing acts on a set of common indicators of general application in the euro area, which would allow Member States to effectively monitor and assess the acceptance of payments in cash and access to cash throughout their territories, in all their different regions, including urban and non-urban areas. It is envisaged that the ECB will be consulted by the Commission on the preparation of such implementing acts . Following adoption by the Commission of the implementing acts on the common indicators, Member States would need to monitor the level of access to cash throughout their territories based on the common indicators. If in the light of their assessment access to cash is deemed insufficient and/or ineffective, Member States would be obliged to take remedial measures. In this context, national legislation concerning access to cash would need to be reviewed and, if necessary, adjusted accordingly . 3.4 From the monetary policy perspective, the ECB also welcomes the measures in the draft law aimed at requiring Croatian credit institutions to provide a national ATM network. In its pursuance of price stability, the ECB must be able to rely on an appropriate transmission of its monetary policy towards the wider economy. Given the key role of credit institutions in the transmission of monetary policy, they should ideally offer access to currency in the form of cash throughout the territory so as to be accessible to all economic actors, including those who do not use digital banking services. At the

same time, the costs of implementation of the new obligations for credit institutions would need to be adequately accounted for in the draft law . This opinion will be published on EUR-Lex. Done at Frankfurt am Main, 14 July 2025. [signed]

The President of the ECB

Christine LAGARDE