Russians can transfer money between their accounts at different banks free of charge

Large Russian banks began to cancel inter-bank transfer fees for transactions between accounts owned by the same holder before the relevant law comes into effect on May 1.

Credit: Nick Youngson / Alpha Stock Images

In fact, discussions on the threshold amount for free money transfer between one’s accounts with different banks began more than a year ago, Artyom Deyev, Head of Analytics at AMarkets, told Invest Foresight. In February 2023, major banks started charging 1-2% for transfers from your account with another bank, which triggered the debate. The proposals ranged from 300K to 1.4 mln rubles ($3.2K-$15K).

“The Central Bank has lobbied for relevant legislation to be adopted, so, I would say the banks’ move to offer free money transfer plans to their clients before the law actually takes effect is their way of showing loyalty to the regulator,” the expert explains.

At the same time, a lender would never operate at a loss, so banks will probably find other ways to make money, Artyom Deyev believes. They might hike charges for other operations or raise account maintenance fees.

“Let’s not forget that the key rate remains rather high. This also bolsters banks’ earnings. In short, I do not expect any noticeable changes in the market,” the analyst summarizes.

Previous ArticleNext Article