Azerbaijan central bank backs banks’ limits on card transactions

Azerbaijan’s central bank supports an approach agreed by banks to limit card transactions to five incoming payments a day, monthly turnover of 20,000 manats and one card per customer for each card product, Governor Taleh Kazimov told a news conference on Thursday.

Kazimov said the arrangement was based on an agreement among banks and that limits could be reviewed individually at a customer’s request.

“Overall, we support this decision — both I personally and the central bank,” he said.

Kazimov said banks’ previously differing approaches had created competition problems. Reaching a common position was a positive step, he added.

Card-to-card transfers totalled 66 billion manats last year and had reached 48 billion manats by August this year, according to figures cited by Kazimov. He said such volumes could not be explained solely by transfers between relatives and friends.

Some transactions were linked to illicit trade and illegal betting activities, he said. Analysing such transactions and preparing reports required additional resources from banks.

Kazimov said salary and pension payments were excluded from the daily limit of five incoming payments. Customers needing higher transaction limits or an additional card could apply to their bank and explain their needs.

“Limits have been set, but they have also left the door open: come, apply and explain,” Kazimov said.
 

N.Tebrizli