Itongadol.- Bank supervisor proposes consolidating and simplifying credit card fees for customers and businesses alike.
The Bank of Israel\’s Supervisor of Banks on Wednesday laid out steps that would allow customers to open ban accounts via the Internet instead of having to show up at a particular branch.
To verify the identity of the person wanting to open the account, the bank will accept electronic copies of two identifying documents and conduct a recorded video interview them.
Bank accounts opened online will have limits, however, to limit the risks of money laundering and terror finance. Cash transactions will be capped at NIS 10,000 and forbidding the end of the day balance to exceed NIS 300,000. Those restrictions will be lifted once the customer makes an in-person visit to the bank.
“Allowing the opening of accounts on the Internet will be a significant step in easing the move from one bank to another, and in increasing the competitive ability of the retail customer—households or small businesses,” said Banks Supervisor David Zaken.
The reform, which will be finalized after following a comment period by other government bodies, is one in a series of steps BOI is taking to increase competition in Israel\’s banking system.
As of April 1, all banks were required to provide simple checking accounts, that lets customers execute 10 activities on their own plus one teller-executed activity per month for a maximum fee of NIS 10.