New laws will protect bank clients

The State Duma announced new legislative provisions aimed at increasing the accountability of banks and microfinance companies to citizens.

The Central Bank of Russia has been given the authority to fine credit institutions for violations of the law in the areas of retail deposit servicing, financial services agreements, and loans to military personnel participating in special operations.

The fine may amount to up to 1% of the bank's equity, but cannot be less than 1 million rubles.

Furthermore, restrictions have been introduced on issuing new loans within 4 days of repaying previous debts. Agreements to replace old debts with new obligations are prohibited, as is the inclusion of overdue interest and penalties in the borrower's principal.

As noted by Parliament Speaker Vyacheslav Volodin, the new measures are intended to improve the level of protection Russians enjoy when interacting with banks and microlenders.

Author: Alfia Agliullina