Bank of Russia extends support to Payment System Entities in 2023

By Gloria Methri

The Bank of Russia has announced the extension of a package supporting National Payment System (NPS) entities, stating that “destabilising factors still affect the payment market” and might cause difficulties in their operations.

In 2022, the Bank of Russia implemented measures to support NPS entities due to changes in the conditions of money transfers amid the restrictions imposed by foreign states. The package aimed to help reduce the burden on such entities expired on 1 January 2023.

In a recent press release, the bank said it has analysed NPS entities’ performance as regards money transfers over the period and found out that destabilising factors still affect the payment market.

Considering these findings, the Bank of Russia has decided to extend the following support measures:

1. Non-application of enforcement measures for a failure to register a payment system operator in the case of credit institutions’ compliance with the criteria stipulated by Part 39 of Article 15 of Federal Law No. 161-FZ, dated 27 June 2011, ‘On the National Payment System’ — until 1 July 2023.

This measure is extended as the transformation of the correspondent relationship continues, which causes fluctuations in the number of money transfers on correspondent accounts.

2. Non-application of enforcement measures against credit institutions for a failure to offer mobile applications to their clients enabling money transfers via the Faster Payments System, if they offer other remote banking systems for these purposes — until 1 April 2023.

The Bank of Russia however clarified that it does not plan to extend the measure associated with the non-recognition by the regulator of a payment system as important in the case of its compliance with the established criteria of importance.

This support measure will terminate from 1 January 2023 as payment system entities have had sufficient time to adjust their business processes to the requirements set by the bank in the case of recognising a payment system as important.