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trA risk-based approach will be applied to fund deposit transactions made through payment instruments
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A risk-based approach will be applied to fund deposit transactions made through payment instruments
The Azerbaijan Banks Association (ABA) and the Azerbaijan Fintech Association (AzFina) have reached an agreement to introduce a risk-based approach to fund deposit transactions made through payment instruments in order to minimize the risks of misuse of banking and electronic money services.
According to the ABA, each payment instrument will be allowed a maximum of five deposit transactions per day and up to AZN 20,000 in deposit transactions per month. In addition, banks and electronic money institutions will issue only one payment instrument for each financial product linked to a customer's account. At this stage, no limits are planned for withdrawal transactions.
The approach is risk-based and is not intended to restrict legitimate deposit transactions. Deposit transactions involving payment instruments owned by customers themselves or their close relatives will be exempt from these limits. Likewise, the limits will not apply where customers provide the necessary information about their transactions and those transactions are consistent with their risk profile.
Where justified, banks and electronic money institutions will also be able to provide customers with additional payment instruments.
ABA and AzFina emphasized that this approach will not create additional restrictions or inconvenience for users with a sound payment history and will not negatively affect their day-to-day transactions. Payment service users will continue to use POS terminals, electronic banking, and other digital payment services in the usual manner.
The Azerbaijan Banks Association (ABA) and the Azerbaijan Fintech Association (AzFina) have reached an agreement to introduce a risk-based approach to fund deposit transactions made through payment instruments in order to minimize the risks of misuse of banking and electronic money services.
According to the ABA, each payment instrument will be allowed a maximum of five deposit transactions per day and up to AZN 20,000 in deposit transactions per month. In addition, banks and electronic money institutions will issue only one payment instrument for each financial product linked to a customer's account. At this stage, no limits are planned for withdrawal transactions.
The approach is risk-based and is not intended to restrict legitimate deposit transactions. Deposit transactions involving payment instruments owned by customers themselves or their close relatives will be exempt from these limits. Likewise, the limits will not apply where customers provide the necessary information about their transactions and those transactions are consistent with their risk profile.
Where justified, banks and electronic money institutions will also be able to provide customers with additional payment instruments.
ABA and AzFina emphasized that this approach will not create additional restrictions or inconvenience for users with a sound payment history and will not negatively affect their day-to-day transactions. Payment service users will continue to use POS terminals, electronic banking, and other digital payment services in the usual manner.