BAKU, Azerbaijan, August 3. The Azerbaijan Banks Association (ABA) and the Azerbaijan Fintech Association (AzFina) have issued a statement regarding the agreed approach to payment instruments.
The associations noted that Azerbaijan has made significant progress in recent years in developing its payment ecosystem and expanding cashless transactions. They stressed that, as a result of consistent reforms, the expansion of digital financial services and the introduction of innovative payment solutions, the volume and coverage of cashless payments continue to grow.
“Modernization of payment infrastructure and the expansion of digital banking services also require more effective risk management in this area and increased attention to ensuring compliance with legislative requirements. Taking the above into account, the Azerbaijan Banks Association (ABA) and the Azerbaijan Fintech Association (AzFina) have reached an agreement on applying a risk-based approach to incoming transactions involving payment instruments in order to minimize the risks of misuse of services provided by banks and electronic money institutions,” the statement said.
According to the agreed approach, each payment instrument belonging to a payment service user will allow a maximum of five incoming transactions per day and incoming transactions totaling up to 20,000 manats per month. The approach also envisages that banks and electronic money institutions will provide payment service users with only one payment instrument for each financial service product linked to their accounts.
The associations particularly emphasized that, at the current stage, no limits are planned for outgoing transactions involving payment instruments.
“As noted above, this approach is risk-based and does not aim to restrict legitimate incoming transactions by customers. Incoming transactions conducted using payment instruments belonging to customers themselves and their close relatives are exempt from the application of these limits.
At the same time, limits will not be applied in cases where customers provide the necessary information regarding their transactions and these transactions correspond to their risk profile. Similarly, if payment service users provide appropriate justification, banks and electronic money institutions will ensure the provision of additional payment instruments required by them,” the statement said.
ABA and AzFina reiterated that the approach will not create additional restrictions or difficulties for payment service users with legitimate payment practices and will not negatively affect their daily operations. “Payment service users will continue to carry out their transactions through digital payments in the traditional manner, using the advantages of digital payment services, including POS terminal infrastructure installed at business entities and electronic banking services,” the statement added.
