Nabiullina: The Bank of Russia is discussing limits on purchases in installments
The Central Bank of Russia is thinking about limiting installment purchases. This was stated by the head of the regulator Elvira Nabiullina, her words are quoted by TASS.
This type of service is essentially lending, so the Central Bank is discussing the possible introduction of limits on installment plans. At the same time, they want to keep them accessible to ordinary citizens.
“We believe that it is necessary to introduce regulation of part of the installment plan, since this is, in essence, lending, when interest is charged on the installment plan. But we continue to discuss limits. We want installment plans to be available to citizens. This is convenient when purchasing durable goods – equipment and so on,” explained the head of the regulator.
Installment plans are the same debt that must be taken into account when calculating the maximum credit load of citizens, noted Mikhail Mamuta, head of the service for protecting consumer rights and ensuring the availability of financial services of the Central Bank. If the bank does not take this information into account, it may issue a loan to the borrower that he is unable to service. Therefore, the Central Bank intends to oblige financial organizations to exchange such information with the credit history bureau (BKI).
Previously, the regulator decided to introduce a limit on the amount of free installments in BNPL services (buy now, pay later – “buy now, pay later”). By June 1, 2024, amendments to the legislation regulating the operation of such services must be prepared. One of the goals is to limit the growth of debt among borrowers.
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