Bank of Russia explores plans to introduce fees on FX accounts and need to take supervisory measures
Several banks announced their plans to start charging account maintenance fees on household foreign currency accounts. The Bank of Russia understands that banks are concerned about the risks arising from foreign currency handling. However, the regulator believes banks should not make service conditions worse for existing customers.
The Bank of Russia will examine whether the introduction of, or increase in, fees on household current accounts was in line with the effective agreements and whether such agreements were compliant with the law, and will take supervisory measures if any violations are found. The regulator will send a relevant information letter to banks.
A unilateral amendment to the conditions of a bank deposit agreement aimed at reducing its term, cutting interest, increasing or introducing fees is a violation of the law on banks and banking activities. Hence, banks are not permitted to introduce fees on already opened foreign currency accounts.
The current sanctions imposed against the Russian financial sector make foreign exchange transactions risky for both banks and households. That is why banks will keep on reducing the volume of their foreign exchange transactions. Banks may stop offering foreign currency products to customers.