Regulatory Alerts2023-03-29
Amendment to Proper Conduct of Banking Business Directive No. 422 on Opening and Managing Current Accounts
The Banking Supervision Department of the Bank of Israel amended Proper Conduct of Banking Business Directive No. 422 to mandate that banking corporations provide basic payment services and e-banking access to all customers, including those with debit balances or in bankruptcy proceedings. The regulation prohibits blanket refusals based on customer demographics or account type, requiring individual merit-based assessments and the implementation of reasonable controls rather than infrastructure limitations. Banks must now provide written decisions with specific reasons within ten business days if they refuse such requests or cease providing these essential services.
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