The public sector to gradually migrate to Mir payment cards
Today, the State Duma has passed a draft law in the second reading that sets the timeline for public sector card holders to migrate to Mir cards.
“In 2014, a law on the transfer of budgetary funds onto national payment instruments was approved with the aim of ensuring security and guaranteed performance of payment card transactions inside Russia. The amendments to this law approved in the second reading set the timeline for transferring budgetary funds to Mir payment cards. The process of close interaction among legislators, public authorities, and the representatives of banks and businesses determined a phased migration of public sector employees and pensioners so as to make it painless and as comfortable as possible for our citizens,” remarked Deputy Bank of Russia Governor, Olga Skorobogatova.
Citizens that will become the recipients of budgetary funds or pensioners after 1 July 2017 will automatically become Mir payment card holders. Existing recipients of budgetary funds will migrate to national payment system cards by 1 July 2018 and existing pensioners will migrate upon the expiry of their international payment system cards, but not later than by 1 July 2020. However, the existing procedure used to select the mode of payment receipt will be maintained. This means that it will be up to pensioners to decide, whether to receive their pension allowance in cash or to have it transferred to a bank account not linked to a payment card. If they opt to have their pension transferred to a card account, they will be issued a Mir payment card.
According to a provision set forth in the document, pensioners shall be entitled to at least one Mir card free of charge without any service or cash withdrawal fees when used in the issuing bank’s ATMs. The majority of banks issue cards to this category of citizens on similar terms (on a no-fee basis). It is very important to preserve these terms.
The established procedure for transferring budget payments to Mir cards does not apply to so-called “one-time” transfers, i.e. tax deductions, one-off payments, payments made less frequently than once a year, and certain other payments.
The amendments to the law are also aimed at expanding the network of devices accepting the national payment instrument. From 1 October 2017, trade and service businesses with an annual turnover over 40 million rubles will be obliged to accept Mir cards depending on the level of development of regional telecommunications technology. Additionally, by 1 July 2017, all banks shall guarantee the acceptance of Mir cards by their ATMs and by points of sale with which they are bound by bank card acceptance contracts.
The third reading of the draft law is scheduled for 21 April.