MOSCOW, August 2 Senators have approved a law allowing foreign banks to open branches in Russia from September 1, 2024.
This will create conditions for the development of a system of international settlements, and will also help attract foreign investment into the Russian economy, the explanatory note says.
The law allows a foreign bank to open one branch in the territory of the Russian Federation. Moreover, such a branch is prohibited from opening internal structural divisions and engaging bank payment agents.
A foreign bank will be able to conduct professional activities in the securities market through a branch in the Russian Federation, with the exception of trust management. When carrying out banking operations and transactions through a branch, the rights and obligations arise directly for the bank that opened it.
To open a branch, a foreign bank must have been operating for at least three years and have a credit rating that meets the Central Bank of the Russian Federation criteria for operating on the Russian market. To ensure that the branch fulfills its obligations, a minimum security deposit of 1 billion rubles is required.
Branches will have the right to carry out cash collection operations; buy and sell currency; make money transfers; and also open and maintain accounts and transfer funds through them — but subject to the restrictions established for them. Thus, branches will not be able to open accounts for individuals. 
Branches will not have the right to attract cash and precious metals from individuals and legal entities as deposits; open and maintain accounts in precious metals, conduct transactions with precious metals, coins made of precious metals, processed natural diamonds; carry out trust management of funds and other property of individuals and legal entities.
Branches will also be prohibited from engaging in manufacturing, trade and insurance activities.