Regulatory Alerts2014-07-06
Added
Non-banking benefits to customers
The Bank of Israel revised Proper Conduct of Banking Business Directives 403 and 470 to establish uniform rules for non-banking benefits granted to customers by banking corporations and credit card companies. The updated Directive permits specific benefits such as small-value items for account opening, cash payments for current accounts, and discounts for advertising, while prohibiting benefits conditioned on customer association periods, return demands, or advertising acceptance. It mandates clear disclosure of benefit values and original prices in promotions, requires website publication of benefit details, and maintains advance written notice for changes to points accumulation methods. These provisions apply to all non-banking benefits granted directly, indirectly, or by third parties, with the Directive becoming effective on January 1, 2015.
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