On May 12, 2023, Hungary announced amendments to its banking regulations, stipulating the mandatory installation of ATMs in every municipality.

This legislation further ensures that the maximum amount withdrawable at ATMs cannot be set below 150,000 Hungarian forint (HUF).

Traditionally, banks have imposed lower withdrawal limits for customers who are not account holders compared to those applicable to their own clients.

Under the new regulations, the Hungarian National Bank (MNB) will designate which service provider is obligated to install ATMs in specific locations.

This could result in scenarios where only one bank, as designated by the MNB, offers ATM services in a given municipality, potentially disadvantaging customers from other banks in that area.

While the 150,000 HUF minimum withdrawal limit has been established, several banks offer higher limits for free cash withdrawals and allow customers to access this option more than twice a month.

For example, UniCredit Bank provides a free withdrawal limit of up to 1 million HUF once a month for certain account packages, while K&H Bank offers a 750,000 HUF limit with a provision for up to five withdrawals monthly.

Some banks, including Gránit Bank and Raiffeisen Bank, have set their limits at 600,000 HUF, whereas CIB Bank has a limit of 400,000 HUF.

A number of banks, however, only adhere to the statutory limit of 150,000 HUF.

Regarding maximum daily withdrawal limits, Gránit Bank allows up to 3 million HUF, while MBH Bank permits up to 2 million HUF per day.

Other banks have a maximum limit of 1 million HUF, with CIB Bank’s limit set at 400,000 HUF.

The daily limits for cash withdrawals that exceed the free options typically incur fees.

In terms of fees for cash withdrawals from ATMs, OTP Bank is noted for having the highest charges, applying a rate of 1.79% plus 165 HUF.

This means a withdrawal of 1 million HUF would cost a customer approximately 18,065 HUF in transaction fees.

Conversely, Erste Bank charges a fee of 1.49% plus 149 HUF, but this is further increased by a 0.6% transaction fee, resulting in total fees amounting to roughly 21,049 HUF for the same withdrawal.

K&H Bank offers a more affordable option, charging 0.68% of the withdrawn amount plus 683 HUF, which translates to approximately 7,483 HUF for a 1 million HUF withdrawal.

Withdrawals from ATMs of other banks usually incur higher costs.

At Erste Bank, the fee for withdrawing from an external bank ATM is 2.38% plus additional charges, leading to a total of approximately 30,581 HUF for a 1 million HUF withdrawal.

UniCredit Bank applies a fee of 2.075% plus 892 HUF, costing about 21,642 HUF for a similar withdrawal.

MBH Bank's fee structure results in a total charge of about 22,800 HUF due to its specific percentage rates and additional transaction fees.

K&H Bank provides one of the more economical options for external ATM withdrawals, charging 0.52% along with a transaction fee that sums to a total cost of around 6,225 HUF for a withdrawal of 1 million HUF.

Notably, both Gránit Bank and Raiffeisen Bank do not differentiate between fees for transactions executed at their own ATMs versus those at external banks, with Gránit Bank charging a total of 10,700 HUF for a 1 million HUF transaction.

These developments indicate an evolving landscape in Hungary’s banking sector, particularly concerning cash withdrawal practices and ATM availability.