More ATMs, free withdrawals and mandatory cash acceptance

A new legislative proposal has been introduced in Slovenia, aiming to expand access to cash payment options and improve banking services nationwide. The bill would require nearly all sellers to accept cash payments, with several exceptions outlined. Under the proposed law, customers could still pay with cash even if they wanted to settle a smaller amount with a larger banknote or if the seller did not have enough change to return. Exceptions also include remote sales, such as online purchases, and public transport fare payments, provided cash was already accepted at ticket counters. The legislation also mandates that sellers must offer at least one form of electronic payment alongside cash. However, certain exemptions apply. For instance, businesses whose annual turnover does not exceed €10,000, or those where proceeds are directed toward charitable causes, such as school fairs, would be allowed to exclude cash transactions. Additionally, locations where electronic payments are technically unfeasible due to infrastructure limitations can also opt out. One of the key provisions of the law is the expansion of ATM availability in rural areas. The proposal suggests that at least 95% of the population should live within five kilometers of an ATM. This means that banks would need to install ATMs in every small settlement with at least a thousand residents. Similar measures are planned for bank branches, ensuring greater accessibility for local communities. For users, the law brings several benefits. All withdrawals and transfers at the home bank will be unlimited and free of charge. At other banks, non-commissioned individuals will be entitled to at least five free withdrawals per month, though these will be subject to limits. A minimum withdrawal threshold will also be set to prevent excessive usage. Bank representatives have expressed mixed reactions to the proposal. While some support the increased accessibility and consumer protections, others have raised concerns. Critics point to the introduction of free packages for beneficiaries who receive regular income, including pensions. They argue that this could lead to unfair advantages and suggest that basic banking services should remain free while additional perks should be reserved for vulnerable groups and retirees. The proposal also includes provisions for broader financial inclusion, particularly for low-income individuals and those living in remote regions. By requiring more frequent and accessible banking services, the government aims to reduce disparities in financial access and promote economic stability among all citizens. As the proposal moves forward, further discussions are expected between lawmakers, financial institutions, and consumer advocacy groups. The final version of the law will likely reflect compromises between different stakeholders, balancing the need for universal access to cash and digital payments with the operational realities faced by banks and retailers. Until then, the debate continues over how best to modernize the financial system while preserving traditional methods of transaction.