Banking Law (Customer Service) (Amendment No. 38) Bill

What does the bill do?

In the notice given to the customer, the banking corporation will include a reference to information about other investment alternatives that may yield the customer a higher return compared with leaving the amount in the current account balance. Regarding the credit balance amount stated in the law, the law authorizes the Minister of Finance, with the consent of the Governor of the Bank of Israel and with the approval of the Knesset Economic Affairs Committee, to change that amount by order. The law provides that notice of such a credit balance will be given to the customer at the beginning of each quarter, but for a period of 18 months from the law's commencement, the notice will be given at the beginning of each month regarding the previous month. At the end of the temporary provision period, the Governor of the Bank of Israel may determine, by order, with the approval of the Knesset Economic Affairs Committee, that the notice will be sent more frequently than once a quarter. Regarding the way the notice is given to the customer, it was provided that the default is delivery in writing in an immediate and accessible manner (such as by text message), unless the customer asked to receive the notices in another way, and it was also provided that the notice will be given to the customer in the way the banking corporation sends them notices, as agreed between them. In cases where the banking corporation knows that the customer cannot receive a written notice (such as a customer who has a "kosher phone"), a voice notice will be given to the customer as an alternative to the written notice. It was further provided that the Supervisor of Banks at the Bank of Israel may set, within the Proper Conduct of Banking Business directives, provisions regarding the notice to be given to the customer, if they find it necessary. In such provisions the Supervisor may set provisions regarding the duty to refer to information about investment alternatives, including a duty to refer to investment in other financial entities. Regarding enforcement of the law's provisions, it was provided that the Supervisor of Banks is authorized to impose a monetary sanction of 50,000 new shekels on a banking corporation that did not send its customers such a notice about the credit balance in their accounts, or that sent such a notice not in accordance with the provisions of the law. The law will take effect on 21.11.2025, that is, at the end of six months from the date of its publication in the Official Gazette (Reshumot).