Rights10/16/2026

Cash in Israel: Public Holdings Reach Record NIS 129 Billion

By the end of the first half of 2026, the amount of cash held by the public in Israel had reached a record NIS 129 billion, despite restrictions on cash payments and the spread of digital payments. However, existing law restricts the use of cash in transactions but does not impose a general prohibition on holding it.

Key facts

•Cash held by the public: NIS 129 billion
•Period: End of the first half of 2026
•Increase in January–June 2026: 3.5%
•Cash payment limit per transaction: NIS 6,000
•Proposed holding threshold that was not adopted: NIS 200,000
•Number of ATMs: 9,150

What Restrictions Apply

The law enacted in 2018 initially limited cash payments in a single transaction to NIS 11,000, and the threshold was subsequently lowered to NIS 6,000. These measures were intended to combat the shadow economy and unreported transactions. However, the data presented show that the total volume of banknotes held by the public continues to grow.

The Ban on Holding Cash Was Not Adopted

As part of the latest Arrangements Law, it was proposed that holding more than NIS 200,000 in cash be made a criminal offense. Due to disagreements in the Knesset, this provision was not adopted. The plan to withdraw NIS 200 banknotes from circulation was also not advanced: the Bank of Israel stated that no professional justification had been presented for such a measure.

How Much Cash Is in Circulation

From January to June 2026, the amount of cash held by the public increased by 3.5%, reflecting an annual rate of approximately 7%. In 2025, the increase totaled 2.6%, compared with 1.3% a year earlier. An additional approximately NIS 10 billion in cash is held by banks and other organizations, in part to operate 9,150 ATMs.

Why Cash Remains Important

According to Bank of Israel data, 32% of Israelis’ expenditures are paid in cash. Such transactions account for 75% in Arab society, 29% in Haredi society, and 15% among the rest of the population; the article links these differences, among other things, to a shortage of credit services and alternative means of payment. The Bank of Israel also views cash as an important backup in the event of disruptions to electricity supply and communications.

What this means for you

According to the material presented, merely holding a large amount of cash is not prohibited under a general NIS 200,000 ceiling, because the relevant proposal did not become law. However, the use of cash for payments is restricted: it is important for an ordinary person to distinguish between holding money and transferring it as part of a transaction. The expansion of digital payments also does not eliminate cash’s role in emergencies and in the event of infrastructure disruptions.

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