SIRIUS, March 6 The Bank of Russia plans to complete the discussion on regulating installment payments within a few months, the head of the service for consumer protection and accessibility told reporters financial services of the Central Bank of the Russian Federation Mikhail Mamuta on the sidelines of the World Youth Festival.
Earlier in February, the Central Bank reported that it was discussing two models for regulating installment payments with the market. For paid installments, the rules are essentially no different from the regulation of consumer lending. And for free installment plans, additional restrictions are being considered, in particular the possibility of providing such a service only by specialized installment operators.
At the same time, the Association of Russian Banks (ADB) considered the approach proposed by the Bank of Russia to regulating installments to be one of the most stringent in the world. Bankers noted that such regulation would not benefit either the consumer or professional lenders, but would only negatively affect sellers. And the National Council of the Financial Market (NSFR) proposed leaving the regulation of free installments in Russia unchanged, and introducing the requirements for paid installments gradually over two to three years.
“I think we will find a reasonable balance. We have already started this discussion, we will try to finish it with the market in the coming months. We will eliminate arbitrage and create a safe space for people,” Mamuta said.
According to him, it is important for the Bank of Russia that a person who uses an installment plan is protected equally with a person who uses a consumer loan.
“Our first task is to make uniform protection of consumer rights, but there is a second story. The fact is that the installment market is, of course, still small, but it is growing very quickly. It has grown significantly over the past year, and this, of course, «cannot but influence the decisions we make. We understand that we must preserve space for those installment operators who are not originally banks, who operate according to their own models, but this must be a space that does not create risks for people and financial systems,» — he added.
The World Youth Festival takes place from March 1 to 7 in the federal territory of Sirius by decree of Russian President Vladimir Putin. The organizer of the festival is Rosmolodezh. – general information partner of the World Youth Festival 2024.