Many residents in mountainous or remote communities in Cyprus are travelling from one village to another in search of ATMs to withdraw cash.
Following the closure of the Cooperative Bank and the reduction in the number of bank branches, the number of ATMs has decreased significantly, causing a major problem for residents of these communities.
The operation of mobile units by some banks has also been discontinued as they were underused.
On the other hand, banks are encouraging citizens to use the cashback service, through which they can withdraw cash of up to €100 from various businesses. It is noted that approximately 300 businesses, mainly supermarkets and petrol stations, offer the cashback service.
The issue was discussed on Tuesday in the House Commerce Committee, with MPs calling on banks to install more ATMs.
The president of the Union of Communities, Andreas Kitromilides, noted that the mobile units operated for two months, emphasising that the elderly face many problems due to the reduction in the number of ATMs.
The president of the House Commerce Committee and DISY MP Kyriacos Hadjigiannis stated that the elderly are forced to travel from one community to another to collect their pensions.
AKEL MP Kostas Kosta pointed out that it is unacceptable and criminal that the entire rural area of Limassol has only one ATM.
Green Party MP, Stavros Papadouris, said that rural residents should be supported, emphasising that where every neighbourhood used to have a bank branch, now there is none.
The positions of the banks
On behalf of the Bank of Cyprus, Theodosis Theodosiou stated that the ATM network is satisfactory and meets the needs of the citizens. He said that the use of cash from ATMs is rapidly declining, pointing out that 94% of transactions are done electronically.
“There is another service, cash back, and many stores accept cards and provide cash,” he noted. He also said that this service helps both merchants and pensioners, who can shop and withdraw cash at the same time. According to Mr Theodosious, the cost of installing and operating an ATM is prohibitive.
On behalf of Hellenic Bank, Andreas Assiotis noted that cashback is the future and its use is much easier than an ATM.
He explained that any business that accepts cards can provide cash through this service.
A representative of Alpha Bank pointed out that the state should promote electronic payments.
Cash is essential
The Central Bank (CB) stated that two European Union regulations will be implemented on 8 February 2025. According to the CB representative, under these regulations, banks will offer remittances and direct payments, as well as transfer money from card to card.
“Part of the regulation provides for the availability of cash everywhere, and criteria and parameters will be set for each geographical area to ensure the provision of cash.”
It also said that the reduction in ATMs and bank branches is a global phenomenon, noting that ATMs have decreased by 20% since 2015.
According to the CB, there are 400 ATMs in Cyprus, and regarding the cashback service, it emphasised that businesses don’t need to offer it.
