aA
The central Bank of Lithuania must curb the growth of charges applied by commercial banks on cash withdrawals, Prime Minister Algirdas Butkevičius has said, slamming banks’ efforts to levy charges on withdrawals of larger amounts of money from ATMs.
Lithuanian PM: central bank must curb growing charges on cash withdrawals
© Shutterstock nuotr.

“I think it’s a very negative development and I remember when Vitas Vasiliauskas got the parliamentary approval to chair the Bank of Lithuania the first goal he mentioned was to curb the growth of bank charges. We’ve had a number of conversations since then and the Bank of Lithuania somehow still fails to find the instruments that would help manage these developments,” Algirdas Butkevičius told reporters in Vilnius on Monday.

DNB Bankas and SEB Bankas intend to levy charges on money withdrawal from ATMs from July or August.

DNB Bankas will charge 0.3 euros per transaction until the monthly amount reaches the threshold of 500 euros, in which case the charge will increase to 0.3 percent of the amount.

SEB Bankas will not levy any charges on withdrawals up to the threshold of 500 euros and will levy a 0.4 percent fee on larger amounts.

Meanwhile, the president of the Lithuanian Banking Association (LBA) said that a reversal in cash withdrawal policy of the country’s top banks showed that they were ceding those services to other market players gradually.

“Cash transactions generate losses to banks; this has been proved by surveys. Banks basically levied no fees on cash withdrawals as they competed for customers. Now the demand in cash is probably decreasing and it’s natural that they simply offer and promote more alternative and cheaper instruments,” Stasys Kropas told BNS.

At the same time, Kęstutis Kupšys, director of the Association for Honesty in Banking, told BNS that cash money would be replaced by other e-money systems in the future.

He believes that the banks have chosen to lower the thresholds for free-of-charge cash withdrawal due to a fall in revenues against the backdrop of low interest rates and the adoption of the euro.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

President proposes nine legislative initiatives for Seimas spring session

Lithuanian President Gitanas Nauseda has proposed including nine legislative initiatives into the...

People returning to Lithuania from China advised to avoid contact

People who have returned from China where the new COVID-19 coronavirus is spreading are advised to...

EU leaders fail to agree on new budget: Nausėda hopes for decision over month

EU leaders on Friday failed to agree on the Community's 2021-2027 budget amid disagreements over its...

Vilnius district municipality backs further asphalt-paving of PM's street

Vilnius District politicians on Friday decided to endorse a strategic activity plan for 2020–2022...

Vilnius resident suspected of forging ID and other documents of various countries

Criminalists from Vilnius police have busted a man who is suspected of forging ID and other...

Top news

Vietnamese student feels happy living in Vilnius: back home I wear mask every day

Vietnamese student Tri Huynh Viet Minh from Saigon is full of curiosity. Having won a scholarship...

President proposes nine legislative initiatives for Seimas spring session

Lithuanian President Gitanas Nauseda has proposed including nine legislative initiatives into the...

Experience Lithuanian culture: Užgavėnės in Kaunas

In Lithuania, we call the holiday Užgavėnės, which can be loosely translated into ‘Before fasting...

Leader in gaming and VR platforms to undergo major expansion in Lithuania

Unity Technologies , creator of the world’s most widely used real-time development platform for...

German polymer specialist establishing microduct systems production unit in Klaipeda

REHAU , a family-owned polymer specialist with annual sales of around EUR 3.5 billion, is...

|Maža didelių žinių kaina