NBU Governor explains how new card limits will affect Ukrainians
Andriy Pyshnyi, NBU Governor, explained the provisions of the Memorandum on Ensuring Transparency of the Payment Services Market, which was agreed upon by major Ukrainian banks, the Independent Association of Ukrainian Banks, and the NBU.
"Toughening, lowering limits, "tightening the screws" - anything but the real essence of the Memorandum on Ensuring Transparency of the Payment Services Market.
Yesterday, let me remind you, it was signed by PrivatBank, Oschadbank, Raiffeisen Bank, and Universal Bank (the largest issuing banks) and two associations: NABU and AUB.
So, here is a blitz of answers to the most resonant questions.
1. Does the memorandum make financial monitoring and evaluation of clients in banks more rigid?
No.
Banks have always applied a risk-based approach to customer assessment and, accordingly, to decisions on their servicing.
In addition, the successful implementation of the memorandum, on the contrary, may be a step towards the early lifting of the temporary limit on outgoing P2P transfers, which we had to introduce in October for six months.
2. Does the memorandum introduce additional restrictions for customers?
No.
If you work "in white", receive a "white" salary or can otherwise document your income or wealth, nothing will change for you at all. Just as it did not change for you in October 2024, when the NBU took the first step towards solving the problem with drops by defining a common framework for all clients.
The limits specified in the memorandum apply EXCLUSIVELY to clients who have not provided documentary evidence of their income, especially those defined as "high-risk". In fact, they do not have any documents! The latter, according to banks, make up no more than 1% of the entire client base.
Yes, only 1%, but they are the ones who are actively involved in the drops network and are the basis of this billion-dollar drop traffic.
3. Will the memorandum affect the work of volunteers?
No.
Read the answer above. Banks have long been working on the principle of "know your customer", including customers from the volunteer movement, who simply provide a certain list of documents to confirm their activities. And that's it - they pay and transfer money without any restrictions from the bank. Since October, the NBU has not received a single complaint from volunteer organizations about the restrictions.
4. Do clients now need to update their income data or bring any certificates to banks?
No.
Interaction with banks continues as usual. The Memorandum does not provide for any additional certificates or data updates by clients. I understand that it is important to dwell on this and that this issue may arise because today not all Ukrainians can come to a branch in person. First of all, this concerns our military who are serving on the front line and temporarily displaced persons within the country. The Memorandum does not contain any requirements for additional identification, as it was done when the account was opened.
5. Will the Memorandum reduce the opportunities for financing the shadow economy?
Yes!
The initiative of the banks is nothing more than a streamlining of all the processes and approaches that already exist to prevent the payment infrastructure from being used to finance illegal activities.
Today, this includes tax evasion, which is measured in billions of hryvnias that go unaccounted for in the state budget. This is financing terrorist and sabotage activities, when Russia pays for arson and explosions in our cities through drop centers. In general, this is servicing the shadow economy, which deprives Ukraine of a huge resource needed for the country's defense.", - A. Pyshnyi writes.