Clarifications issued regarding the introduction of limits on card-to-card transfers
The Azerbaijan Banks Association (ABA) and the Azerbaijan Fintech Association (AzFina) have reached an agreement on applying a risk-based approach to operations for topping up payment instruments in order to minimize the risks of abuse of the services of banks and electronic money institutions.
As 1news.az reports with reference to the Azerbaijan Banks Association (ABA), in recent years Azerbaijan has seen significant progress in the development of the payment ecosystem and the expansion of cashless settlements. As a result of consistent reforms, the expansion of digital financial services, and the introduction of innovative payment solutions, the volume and coverage of cashless payments in the country are constantly growing.
The modernization of payment infrastructure and the development of digital banking services also require more effective risk management in this area and increased attention to ensuring compliance with legal requirements.
Taking the above into account, the Azerbaijan Banks Association (ABA) and the Azerbaijan Fintech Association (AzFina) have reached an agreement on applying a risk-based approach to operations for topping up payment instruments in order to minimize the risks of abuse of the services of banks and electronic money institutions.
According to this approach, for each payment instrument of payment service users, the possibility is envisaged of carrying out top-up operations a maximum of 5 times a day and for a total amount of up to 20 thousand manats per month. In this context, banks and electronic money institutions are also expected to provide payment service users with only one payment instrument for each financial product linked to their account. It is particularly emphasized that at this stage the introduction of any limits on debit operations (expenditure operations) on payment instruments is not envisaged.
As noted above, this approach is based on risk assessment and does not imply restricting customers' bona fide top-up operations. Thus, top-up operations on payment instruments belonging to the customers of banks and electronic money institutions themselves, as well as to their close relatives, are excluded from the scope of these limits. At the same time, the application of limits is also not envisaged in cases where customers provide the necessary information about the operations being carried out and these operations correspond to their risk profile. Similarly, when payment service users provide appropriate justifications, banks and electronic money institutions will ensure that they are issued the necessary additional payment instruments.
ABA and AzFina once again note that this approach will not create any additional restrictions or difficulties for payment service users with bona fide payment practices and will not have a negative impact on their day-to-day operations. Payment service users will continue to carry out their payment operations as usual, enjoying the advantages of digital payments, including the POS terminal infrastructure at business entities and electronic banking services.
