Baku, Azerbaijan, Feb. 10
By Azad Hasanli - Trend:
Azerbaijan will switch to direct debit - direct withdrawal from bank accounts in 2016, which will be applied if the amount of non-cash transactions is small, Deputy Director of Payment Systems and Settlements Department of the Central Bank of Azerbaijan Vahid Gurbanli said.
He made the remarks Feb. 10 on the fifth Tax Forum themed "Azerbaijani tax system: Realities and Prospects".
A direct debit or direct withdrawal is a financial transaction in which one person withdraws funds from another person's bank account. Formally, the person who directly draws the funds ("the payee") instructs his or her bank to collect (i.e., debit) an amount directly from another's ("the payer's") bank account designated by the payer and pay those funds into a bank account designated by the payee.
Direct debits are typically used for recurring payments, such as credit card and utility bills, where the payment amounts vary from one payment to another.
Gurbanli said that work on the creation of the National Payment System of Azerbaijan will be completed in the first quarter of 2016.
"This system will make it possible to develop non-cash payments in the country and reduce the cost of services on card transactions," he said.
In addition, Gurbanli said that this year, workstations granted to banks will be transferred to the new platforms.
He said that the bank created a centralized information base under the country's ministry of education and also provided a number of educational institutions with workstations.