The Central Bank of Russia: no one will block banking cards

10.01.2014

The Central Bank of Russia published information “Requirements of article 9 of the federal law “The national cash register system” with reference to the publications by mass media that there is a possibility banking cards will be blocked by banks starting from January 1^st, 2014. The Bank of Russia stated that all banking institutions have a required level of information of their clients.

According to article 9 of the federal law “The national cash register system” a banking card may be blocked by bank only in case if a client breaches the card’s terms of use defined in an agreement between the bank and client. Therefore as the Central Bank of Russia informs that blocking of the banking card can not be operated due to lack of the information about a client by bank. Also the article states that all existing agreements between a client and a bank will remain in force.

The Central Bank advises to clients to exercise his right for refurbishment by providing correct data to the banking institution in a case of making transaction without consent of the client.

Based on: http://www.consultant.ru/document/cons_doc_LAW_156847/

Expert’s opinion

All amendments reflected in article 9 of the federal law “The national cash register system” are intended to secure immediate response of the clients to the doubtful card transactions.

For example: Friday night and you have got SMS sent by your bank that 100,000 Thai baht were withdrawn in Bangkok from your banking card. What to do then? How to cancel transaction? It is a good thing that bank can communicate with you for your approval of the transaction. But what to do if bank does not have any contacts of a client? How will bank understand that the transaction which chooses withdrawal of all cash and overdraft is initiated by the client or it is fraud committed by the third party?

It is clear that many Russian banking card users do not have any communication with bank on this ground. And there are no any tools to make the clients to provide banks with contacts information. For hedging its bets a bank blocks client’s banking card and it becomes the client’s business to come to bank to unblock the card and provide the bank with his contacts to avoid situations like these in future.

Thus information letter of the Central Bank of Russia aims to avoid actions mentioned above by banks and other financial institutions

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)