Level of non-cash payments should increase
By Sara Israfilbayova
It is necessary to improve the non-cash payment system in Azerbaijan.
Ramil Mahmudov, the head of the Development and Control Department of Payment Systems of the Central Bank of Azerbaijan (CBA), told Trend that at present the system of non-cash payments in Azerbaijan is not at the proper level.
“Compared to previous years, the volume of non-cash payments in the country has increased slightly, but despite this, problems still exist. Despite the potential in this area, the presence of gaps indicates that it is necessary to strengthen work in this direction. In general, bringing the level of non-cash settlements in the country to global indicators is one of the main tasks of the Central Bank of Azerbaijan,” Mahmudov stressed.
The CBA representative also noted that in the priorities of the regulator there is always an increase in security in non-cash settlements.
“Recently, we drafted amendments to our rules for the use of plastic cards, one of which concerned the increase in security with online payments. The facts of card fraud, revealed recently, show that the vector fraud is gradually moving to electronic commerce, because it is much easier to carry out such frauds here. In order to prevent such fraud, banks must have the proper training, have a stable policy of adequate counteraction to risks,” he noted.
According to the CBA, in January-July, 2018, turnover on payment cards via ATMs and POS-terminals in Azerbaijan totaled 9.86 billion manats ($5.8 billion), which is 20.2 percent more than the figure of seven months of last year. The total number of transactions with payment cards during the reporting period amounted to 65.27 million (an increase of 20.7 percent).
The law “On non-cash payments” was adopted in order to strengthen accounting in the financial system, through the development of non-cash payments.
The law envisages a limit for cashing operations. Banks and postal operators will charge a simplified tax (1 percent of the sum) for cashing of means kept in bank accounts of legal entities and private entrepreneurs.
Under the law, trade and public catering entities (registered as VAT payers), with the annual turnover exceeding 200,000 manats ($117,600) will have a right for limited volume of cash payments (not exceeding 30,000 manats ($17,600) per month), while a limit of 15,000 manats ($8,800) will be set for other taxpayers.
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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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