The Bulgarian Parliament has unanimously approved a legislative amendment that allows account holders with basic payment accounts to withdraw cash up to 10 times per month free of charge.
This change, passed during the second reading of the Law on Payment Services and Payment Systems, aims to ease financial access for low-income citizens while preparing the country’s banking sector for future eurozone integration.
A total of 150 Members of Parliament (MPs) voted in favor of the amendment, signaling broad political support for the measure. Under the new rules, consumers will also be entitled to up to three free credit transfers per month, including those made via online banking.
These services will be free of charge as long as they are carried out through the bank where the account is held.
What Is a Basic Payment Account?
A basic payment account is typically where salaries, pensions, social benefits, scholarships, and accrued interest are deposited. These accounts are designed for individuals with lower incomes, and banks do not charge maintenance fees for them.
The new legislation strengthens the role of these accounts by making essential transactions like withdrawals and credit transfers more accessible and cost-free.
Why 10 Withdrawals?
Initially, lawmakers considered allowing only three free ATM withdrawals per month. However, Atanas Atanasov from the BSP – United Left argued that this would be insufficient, especially for pensioners and students who rely heavily on basic accounts.
Following consultations with the Bulgarian
EU regulations, it was revealed that most users rarely exceed 10 withdrawals per month, leading to the increased limit.
While some MPs pushed for even more generous allowances, including unlimited free withdrawals or as many as 30, these proposals were rejected in order to maintain a balance between consumer benefits and the banking sector’s operational costs.
Preparing for Eurozone Accession
Beyond offering benefits to account holders, the legislative changes are part of Bulgaria’s broader preparations for joining the eurozone. The reforms will bring the nation’s banking and payment systems in line with European Union (EU) standards.
Notably, the amendments prepare Bulgaria for integration with TARGET, the Trans-European Automated Real-Time Gross Settlement Express Transfer System.
As part of this transition, the Bulgarian National Bank (BNB) will be authorized to operate TARGET-BNB, a system compatible with EU frameworks, while the existing RINGS real-time gross settlement system will be phased out once Bulgaria adopts the euro.
These steps will enhance regulatory oversight of electronic payment platforms and ensure smoother cross-border transactions within the EU financial system.
Impact on Consumers and the Banking Sector
The new legislation is expected to provide significant relief for individuals who depend on basic payment accounts, particularly low-income groups and retirees.
By reducing banking fees for essential services, the amendments are seen as a step toward financial inclusion, while also modernizing the country’s payment infrastructure to meet European standards.
This dual approach—consumer-friendly reforms coupled with strategic eurozone preparations—positions Bulgaria for a more competitive and integrated financial future.