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Bankitalia urges banks to remove barriers to basic low-cost accounts for vulnerable customers

Executive summary: The Bank of Italy issued a directive to banks and payment service providers to avoid creating obstacles to the opening of basic bank accounts for low-income and vulnerable customers. The measure supports financial inclusion by ensuring access to essential, low-cost banking services for those at risk of exclusion from the formal financial system.

Who is involved: Bank of Italy (issuing authority), banks and payment service providers in Italy (target of directive), low-income and vulnerable individuals (intended beneficiaries).

Likely next: Monitoring of compliance by the Bank of Italy, potential follow-up guidance or reporting requirements, and increased promotion of basic accounts by financial institutions.

The Bank of Italy has instructed financial service providers not to discourage or obstruct the opening of basic bank accounts, a low-cost product designed for individuals with low incomes or financial vulnerability. This move aims to enhance financial inclusion by ensuring equitable access to essential banking services. The directive follows concerns that some institutions may be indirectly deterring uptake through complex procedures or lack of promotion. No penalties or specific enforcement mechanisms were mentioned in the announcement.

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