Businesses and consumers have criticised the Bank of Cyprus for slapping increased charges on services offered and all transactions.
Bank of Cyprus clients have voiced disapproval over significant increases in charges on transactions introduced from 1 August.
The array of fee hikes follows those of Hellenic Bank implemented in March.
BoC is believed to be looking for ways to enter the digital era and to cut costs by promoting online transactions.
It has virtually raised all charges on transactions made at its branches, with a typical example being the introduction of a charge on cash withdrawals made with the assistance of a bank cashier. Cash withdrawals at the till are now charged up to €2.
Bank of Cyprus has also introduced a fee of 15-euro cents for transfers between accounts at the till.
Hellenic Bank does not charge for transfers between accounts of the same customer within the Bank if the amount is under €5,000.
Significant increases have been imposed for issuing a chequebook. Bank of Cyprus increased the fee for issuing a chequebook to €25 from €15 when the booklet is ordered from the branch network and €16 from €6 when the booklet is ordered online.
Furthermore, the bank will be charging a fee of €2 for cashing checks issued by BoC, whereas until now there was a fee only for the redemption of cheques issued by other local banks.
Increased charges are imposed on legal entities for contract preparation costs for loans. Charges have now increased to €150 from 100 for small and medium-sized businesses and to €350 from €200 for large companies. There is a fixed charge of €750 for large companies in case of a mortgage registration.
BoC’s increases have caused the ire of the Cyprus Consumers Association which called the new charges “unacceptable”.
It opposes the idea that consumers are charged for withdrawing cash from their accounts and for cashing in a cheque issued by a customer of the same bank. The Association said that these added costs will be a burden on the shoulders of the elderly who are not familiar with technology.
Employers federation (OEB) General Manager Michalis Antoniou said the use of cheques and cash for transactions has already been reduced by businesses.
He said that the “the bank’s effort is within the framework of digitisation of the economy, which OEB passionately supports."
General Secretary of the Cyprus Chamber of Commerce (KEBE), Marios Tsiakkis said that there is a general tendency to abolish the use of cheques, which entail administrative costs. However, he anticipated an angry reaction from KEBE’s members who have previously complained about high bank charges in the past.
The Cyprus Central Bank said it had no say in the matter as under the law it could not intervene.
