FPS transfers between individuals to be free of charge again for banks
The Bank of Russia Board of Directors decided to reduce to zero the rates for banks on transfers between individuals through the Faster Payments System (FPS) until 30 June 2022. This will allow credit institutions to provide FPS transfer services to their retail customers free of charge or at the lowest rate possible.
In 2019, banks already enjoyed a grace period, when the Bank of Russia did not charge them for FPS transactions. In turn, most banks participating in the FPS also provided services to their customers free of charge, given the low cost of such transactions for the banks.
That said, the Bank of Russia will continue to monitor the fees banks charge to their customers in the FPS. If the fees are elevated or limit citizens’ possibilities to make unrestricted transfers, the Bank of Russia will use its right to cap such fees.
‘It is important for us to provide customers the opportunity to securely and ubiquitously transfer funds to each other. That is why we decided to introduce again a two-year grace period for banks for the most demanded FPS transactions, retail funds transfers. It will allow banks to, on the one hand, reduce their costs, and, on the other hand, offer the lowest possible, or even zero, rates to their customers. That is the most important objective of the FPS,’ said Olga Skorobogatova, First Deputy Governor of the Bank of Russia.
Also, the Bank of Russia Board of Directors decided to expand the caps on the fees and interbank commissions on transfers to legal entities for goods and services and on payments to individual entrepreneurs. Furthermore, rates were established for funds transfers from legal entities to individuals.
All the tariffs become effective from 1 April 2020.