On April 1, 2025, a legislative proposal was submitted in Hungary requiring the operation of Automated Teller Machines (ATMs) in every settlement across the country.

This proposal also includes changes to the maximum cash withdrawal limits that can be taken in a single transaction, which may affect OTP Bank, the operator of the largest ATM network in Hungary.

The proposal specifies that the upper limit for cash withdrawals through cash-replacement payment instruments from ATMs located in Hungary cannot be less than 150,000 Forints per transaction, barring exceptions noted in paragraph (2).

Currently, this limit is set at 75,000 Forints.

Under the new regulation, customers must be able to withdraw at least 150,000 Forints from any domestic ATM.

However, there are situations where individuals could have a lower daily cash withdrawal limit based on their existing banking agreements.

The proposed legislation states that these customers should have the option to increase their daily cash withdrawal limit to at least 150,000 Forints.

While this requirement may not seem significant, as many account holders do not typically withdraw such large sums at once, there are several ATMs where the current limit is lower.

For instance, OTP Bank ATMs currently allow withdrawals up to 75,000 Forints per transaction for customers from other financial institutions, given OTP Bank operates the most ATMs in Hungary.

The importance of this proposed change is underscored by statistics indicating that the total cash in circulation in Hungary exceeded 9 billion Forints as of December last year, reflecting a substantial tendency for households to hold physical cash.

Nevertheless, data from the central bank reveals a decline in cash withdrawal transactions, with approximately 21.3 million cash withdrawals recorded in the third quarter of 2024, representing a decrease of roughly 120,000 transactions, or 5.3%, compared to the previous year.

The total transaction value dropped from 2,370.9 billion Forints to 2,286 billion Forints, marking a 3.6% decline.

Under the current 75,000 Forint limit, account holders can achieve a combined cash withdrawal of 150,000 Forints by making two transactions.

This allows for compliant ATM use under the statutory free cash withdrawal rule.

However, users must be conscious of their withdrawal patterns; for example, if a non-OTP Bank customer withdraws only 50,000 Forints in their first transaction that month, they would be unable to withdraw an additional 100,000 Forints in their second transaction from an OTP ATM.

Alternatives would include finding another ATM with an appropriate withdrawal limit or accepting a cumulative withdrawal of only 125,000 Forints for that month.

Additionally, it should be noted that some bank accounts may allow withdrawals exceeding the 150,000 Forints limit without incurring fees, especially for specific account packages that provide free cash withdrawal options on top of the legislative requirements.

If the proposal is passed, the changes will take effect on the first day of the fourth month following its announcement.