The Central Bank of Russia (CBR) has announced amendments to its instruction on issuing and servicing credit cards. The CBR allowed banks to issue card rouble credits to private clients without opening banking accounts. Market participants say the amendments approved by the Ministry of Justice reduce banks’ operating costs. However the amendments are even more important for the banks which were not allowed into the Russian deposit insurance system and now operate on the banking market providing credits to individuals. Russian law bars them from placing household funds on deposit, considered to be «funds placed by individuals with banks on the basis of bank deposit or bank account agreements," while earlier banks were obliged to open these accounts when issuing credit or settlement cards.
Source: KOMMERSANT, November 2, 2006
