Bank of Russia to allow credit institutions to withdraw funds from their deposits early

Credit institutions will be allowed to make early withdrawals from their deposits held with the Bank of Russia. This will help them manage their liquidity more flexibly.

Credit institutions will be able to request early partial or full return of funds deposited with the Bank of Russia as a result of auctions for more than one day. Deposits redeemed earlier will be repaid at an interest rate equal to the overnight deposit rate applicable on the day for which interest is accrued. Thus, a credit institution’s income from an early deposit return will be the same as if the amount withdrawn early had been invested overnight during the relevant period.

Early repayment of deposits will be possible starting from 4 March 2024. For this purpose, a credit institution must enter into an additional agreement with the regulator on the general terms and conditions of deposit operations in accordance with the updated Terms and Conditions of Deposit Operations of the Bank of Russia. The regulator will also inform credit institutions about the procedure for concluding such additional agreements.

The Bank of Russia will accept requests for early return of deposits only via online accounts or, if not technically feasible, in paper form on working days. The hours for accepting requests will be posted on the Bank of Russia website.

A deposit or a portion of it will be transferred to a credit institution on the day the Bank of Russia receives a request for early return.

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26.02.2024 19.01.25