The Russian Central Bank (CB) has issued an unofficial recommendation to banks to minimize card-to-card transfers. The policy is part of the mega-regulator’s fight against illegal cash flow, Kommersant reports.
According to an official Central Bank statement, the volume and number of card-to-card transfers has been on a steady rise, and the regulator is concerned with controlling the risks in this segment.
The Faster Payments System (FPS) service, which is controlled by the Bank of Russia, could be an alternative to the popular online or app-based card-to-card transfers.
However, economist Sergei Khestanov, Associate Professor at RANEPA, believes such strong pressure on card transfers will have a simple and obvious consequence — payments will shift towards cash.
“Will this be a positive change for the Russian economy? I doubt this,” the expert notes.