Here’s the thing. You can only do local transfers in your resident country. Your resident country is the country you used when you registered (i.e. the address). You can change this to a different country (assuming you can provide the required documentation), but then you get the local transfers there, and can then only do cross-border transfers from your “old” country. But in the EU there is SEPA, which shouldn’t involve any surchages, even across borders. In fact, the transfer information for my EU based bank looks EXACTLY the same under the LOCAL and SWIFT tabs in the app.
Alas, despite SEPA, your EU bank may or may not charge you for transfers, either in or out.
I too, “lost” my ability to do a local CHF transfer to my revolut account, which worked just fine last week (my account is based in the EU).
Its almost certainly some kind of regulartory issue, but as Revolut has already vetted me, and my bank(s) have similarly vetted me, even if they are in different countries, its strange that we’re disallowed to to local transfers.