bankers considered the Central Bank’s proposal to regulate installment payments harsh – Kommersant

The approach to regulating installment plans proposed by the Central Bank (CB) is one of the strictest in the world, according to the Association of Russian Banks (ADB). She reported this in an appeal addressed to the head of the Central Bank, Elvira Nabiullina, writes TASS with reference to the document.

The association did not support the regulator’s initiative. According to the ADB, the approach chosen by the Central Bank “will not benefit either the consumer or professional lenders”, but will have a negative impact on sellers – in particular, on small and medium-sized businesses.

“With an incomparably lower level of penetration of installment services and the debt burden of the population in Russia, without conducting research confirming the insecurity of consumer rights and the presence of systemic complaints about their violations, as well as public discussion of the potential consequences of implementing regulatory initiatives, one of the most stringent regulatory options in the world is proposed,” – it is said in the appeal.

ADB believes that if there is a request, self-regulatory tools can be used. For example, one of the banking associations could ensure the accreditation of BNPL (buy now, pay later) services, the development and verification of standards for the provision of installment plans, the association suggested.

The day before became knownthat the Central Bank is considering the possibility of introducing a limit on the amount of free installments provided by BNPL services. The regulator intends to develop amendments to the legislation regulating the purchase of goods and services using BNPL services by June 1. As part of the free installment model, additional regulation may be introduced in the form of a limit on the amount of purchases. At the same time, only specialized operators will be able to provide free installment plans.

Details are in the Kommersant FM article. “Installment payment is red”.

Laura Keffer