11/08/2022
In response to the announcements and decisions of individual banks to increase fees for particular services linked with payment accounts, the NBS has undertaken a number of activities to prepare relevant regulations, in a dialogue with banking sector representatives. A direct result of these activities and the Governor’s engagement is the decision of all banks that increased the fees for payment services to citizens as of 1 January 2021 to reduce them by 30% in the coming period, as of 1 September, or bring them back to the level prior to the increase. According to our current estimates, over the next year the cumulative benefit for our citizens will equal RSD 7 bn, which is an effect that is not negligible in the current circumstances of mounting challenges from the international environment and global cost-push pressures.
In accordance with previous announcements, the NBS has also adopted today the Decision on the Payment Account with Basic Features, durably protecting citizens’ standard in regard to payment services needed for everyday activities.
The above measure also limits the prescribed price of the package of the payment account with basic features to RSD 150 and defines its guaranteed content. For RSD 150 only, citizens choosing this package will be able to get a dinar current account in a bank, take cash at the tellers and ATMs of their bank free-of-charge, get a free-of-charge debit card and m- and e-banking with an unlimited number of transactions at POS via the QR code. In those banks that charge orders via e- or m-banking, citizens will have a 30% discount relative to the lowest price of the order paid by the users of other packages. They will also be able to upgrade this package with an additional service such as the credit card, FX account, overdraft or cheques, without the need to switch to a more expensive package. As the fee for this service is limited, it pays off more to make an upgrade than to switch to a costlier package. All citizens are given the possibility to switch to this package if they assess it will meet most of their needs and they will also be able to upgrade it with additional services.
For instance, if a client chooses the account with basic features which will now cost RSD 150 and needs a credit card (e.g. to make payments online or in instalments), while the price of the bigger package with that bank costs RSD 300, he will be paying the amount paid by the users who use the credit card within the bigger package. If the users of the bigger package do not pay additionally for the credit card, the user of the basic account will not pay more than RSD 75 for that credit card (a 50% difference between the prices of packages). This means he will still pay less (RSD 225) than the user of the 300 RSD package which includes the credit card.
To provide for an additional bank supervisory mechanism and ensure future transparent and clear conduct of banks in case of intended increases in fees for the provision of payment services and in case of introduction of new fees, at its meeting today, the NBS Executive Board has also adopted the Decision Amending the Decision on Risk Management by Banks. From now on, the NBS will be timely informed of planned changes to banks’ tariffs, which will help us timely identify whether banks’ activity is appropriate and undertake relevant measures.
Since 1 January 2021, of 21 banks operating in Serbia which have account packages for natural persons (the Bank of China does not work with citizens), 14 of them have made tariff adjustments (12 banks changed tariffs, among other things, in regard to current account maintenance fees, and two banks changed tariffs but not in the segment of these fees). Compared to 31 December 2020, according to NBS estimates, the current price of the basket of basic banking services in these banks has increased by 13%.
Although banks are, in line with law, free to determine the prices of their services, just as any other service provider is, now that we are facing soaring energy prices and the consequently rising prices of many other goods and services driven by the factors outside our country, the NBS has pleaded with banks to demonstrate a responsible approach and contribute to the preservation of their clients’ living standard. All banks have accepted the NBS’s invitation not to raise the prices of their payment services over the next year. Moreover, although, in line with regulations, they had the right to raise the fees for payment services, all banks that raised the fees in the period from 1 January 2021 to date have agreed to charge these fees with a 30% discount over the next year, starting from 1 September, but not below the amount of those fees before they were increased.
In this way, the price of the basket of basic banking services would, to the greatest extent, be returned to the level as at 31 December 2020. Of total 6.8 million opened dinar accounts, these activities will cover 70% of those accounts, and the account maintenance fee will be reduced for 50% of these accounts.
According to the NBS estimate, the expected saving from this reduction for citizens will exceed RSD 7 bn over the next twelve months. The saving in respect of the reduction in the account maintenance fee equals around RSD 2.5 bn, and the saving in respect of the reduction in the fee for payment execution measures around RSD 1.5 bn, while the rest (around RSD 3 bn) concerns the saving in respect of the reduction in other fees.
To better understand the application of this reduction, the tables below contain representative examples for individual fees in the situation when a bank increased the fee in the past 19 months above 30%, below 30% and when it did not change the fee.
Representative examples – amount of the current account maintenance fee
| Example | Amount of fee as at 31 December 2020 | Currently valid fee | Reduced amount of fee | ||
|---|---|---|---|---|---|
| I | Fee raised by more than 30% compared to 31 December 2020 |
RSD 230 | RSD 350 | RSD 245 | The new amount of the current account maintenance fee will be lower by 30% compared to the current level and will equal RSD 245. |
| II | Fee raised by less than 30% compared to 31 December 2020 |
RSD 300 | RSD 350 | RSD 300 | The new amount of the current account maintenance fee will equal RSD 300. If by reducing the maintenance fee by 30% compared to the current level, the new amount of fee falls below the maintenance fee valid on 31 December 2020, the reduced fee will equal the fee valid on 31 December 2020. |
| III | Fee not raised compared to 31 December 2020 |
RSD 220 | RSD 220 | RSD 220 |
If a bank has not changed the maintenance fee since 31 December 2020, the fee will not be adjusted or reduced.
|
Representative examples – amount of the fee for electronic payments
| Example | Amount of fee as at 31 December 2020 | Currently valid fee | Reduced amount of fee | ||
|---|---|---|---|---|---|
| I | Fee raised by more than 30% compared to 31 December 2020 |
RSD 0 | RSD 20 | RSD 14 | The new amount of the payment fee will be lower by 30% compared to the current level and will equal RSD 14. |
| II | Fee raised by less than 30% compared to 31 December 2020 |
RSD 15 | RSD 20 | RSD 15 | The new amount of the payment fee will equal RSD 15. If by reducing the payment fee by 30% compared to the current level, the new amount of fee falls below the payment fee valid on 31 December 2020, the reduced fee will equal the fee valid on 31 December 2020. |
| III | Fee not raised compared to 31 December 2020 |
RSD 10 | RSD 10 | RSD 10 | If a bank has not changed the fee since 31 December 2020, the fee will not be adjusted or reduced. |
As so far, we expect from banks to behave conscientiously and exercise good business practice in every segment of their operation. The Decision on the Payment Account with Basic Features makes a breakthrough towards a guaranteed service, not only in the banking services market, but in the overall market of goods and services in Serbia. By amending the Decision on Risk Management by Banks, we have outlined the NBS’s expectations from banks in terms of tariff changes so as to prevent different interpretations of banks’ obligations in this field and ensure uniform application by all banks operating in Serbia.
In accordance with the agreement with the NBS, each bank has committed either to abolish or adjust to the actual cost the fees for individual non-typical services, such as the PIN change at ATMs, checking balance at ATMs, charging ungrounded claims, permanent card blocking, unblocking etc.
The NBS will continue to undertake all necessary measures to ensure financial stability, with the aim of protecting the interests of citizens and businesses of the Republic of Serbia.
Governer's Office
