Free ‘Basic banking services’ to be launched for low income groups

15-09-2020

15 September 2020, Baku: The Central Bank always attaches great importance to implementation of the instructions by the President of the Republic of Azerbaijan to strengthen social welfare of low-income population, reduce poverty and increase employment and takes relevant measures to increase financial inclusion, diversify channels to deliver banking services, ensure effective access to banking services, especially for low-income groups. Within the frames of related efforts the Central Bank of the Republic of Azerbaijan together with the Azerbaijan Banks Association developed and presented to the banking sector a package of free ‘Basic banking services’ proposals for low-income groups.

The ‘Basic banking services’ package developed within the frames of implementation of the actions specified in the ‘State Program on expansion of digital payments in the Republic of Azerbaijan for 2018-2020’ approved by Decree# 508 of the President of the Republic of Azerbaijan dated 26 September 2018 includes benefits, such as opening free bank accounts for low income population, providing free debit cards, non-application by the issuing bank of a service fee for cash transactions from its acquirer network within the country, non-deduction of service fees for payments made using electronic banking services, etc.

At the initial stage of the project, within the implementation of the Presidential Decree dated 19 March 2020, 600,000 citizens registered as unemployed at the State Employment Service will be provided with free basic banking services by banks operating in the country.

Introduction of free ‘Basic Banking Services’ for low-income groups by banks will expand access for low-income groups with limited access to banking services to digital financial services through more efficient and effective channels, increase financial inclusion and strengthen access to financial banking services.

Central Bank of the Republic of Azerbaijan

Azerbaijan Banks Association