Schirl's proposal interferes with the existing banking model

Minister for Finance Andrej Šircelj has proposed a significant overhaul of Slovenia’s current banking model, aiming to ensure greater accessibility to cash and basic financial services while introducing free packages of essential payment services for individuals with regular income. The proposal, currently under public review, seeks to address disparities in access to banking facilities, particularly in rural areas, and to support vulnerable groups through cost-free financial tools. The reform outlines new rules that could substantially change how citizens access cash and fundamental banking services. According to the draft law on the availability of cash and free basic payment services, the government intends to prevent residents of smaller towns from being left without ATMs or branches, while simultaneously offering a package of free services for those with regular incomes. Banks have already indicated they will provide feedback, warning that offering such services without costs would be challenging. In urban centers, an ATM is almost always within reach. However, this is not the case in rural areas, where the closure of branches and ATMs forces individuals to travel longer distances to withdraw cash or manage their accounts. This issue is precisely what the Ministry of Finance, led by Šircelj, aims to resolve. The proposed law sets minimum standards for access to cash throughout the country. It defines the maximum distance to an ATM, requiring that in settlements with over 1,000 inhabitants, an ATM must be available within five kilometers of the settlement center. Similarly, larger settlements with over 3,000 residents would need a bank branch or a suitable Post Office Slovenia office within the same radius. If banks fail to maintain adequate coverage in underserved regions, the proposal allows the Bank of Slovenia to designate another credit institution to provide the necessary cash points. Factors such as market share, regional presence, and past closures of cash points would be considered in these decisions. This marks a shift from the previous approach, where the state merely monitored the shrinking network of banking services. Now, institutions would be required to meet defined minimum standards. The proposal also includes provisions ensuring that cash remains accessible even during crises, emphasizing its importance alongside digital payment methods. The constitutional amendment enacted in December 2025, specifically Article 74a, guarantees everyone the right to use cash in banking transactions and other legal economic activities. The Bank of Slovenia explained that the intent was to ensure continued access to cash through ATMs and branches. While digital payments, such as cards, mobile apps, and online banking, are common for many, not all citizens have equal access to these technologies. Older individuals, those living in rural areas, and people unfamiliar with digital services still rely heavily on physical access to banking and cash. The Bank of Slovenia has highlighted the importance of having access to various payment methods and a certain amount of cash, especially in crisis situations. Potential risks include disruptions to critical infrastructure, cyber threats, geopolitical tensions, and weather-related disruptions. A second key component of Šircelj's proposal targets banks directly. It introduces a free package of basic payment services for individuals receiving regular income, including salaries, pensions, stipends, unemployment benefits, and other recurring payments. The package would include account opening and management, debit card issuance, online and mobile banking, unlimited inflows, limited cash withdrawals at the home bank, and at least five free cash withdrawals per month at ATMs of other banks. Additional free services would be offered to retirees and vulnerable groups, such as bill payments, recurring charges, and direct debits. For users, this represents a considerable change. While the Bank of Slovenia has outlined some of the implications, the full impact remains to be seen as the proposal moves forward. The public consultation period is set to conclude on August 17, after which further steps will follow.