Central Bank: Use of electronic money in Azerbaijan to be limited
Azerbaijan, Baku, Sept. 24 /Trend, A. Akhundov/
Azerbaijan will start issuing electronic money, which will lead to the stimulation of non-cash payments in the country, First Deputy Chairman of the Central Bank of Azerbaijan (CBA) Alim Guliyev told journalists on Tuesday.
This envisages the law 'On Payment Services' developed by the CBA.
"The requirements to organizations that will issue e-money have already been defined. Electronic money can be used in trade and services spheres in a limited manner," Guliyev said.
According to him, after the adoption of the draft law, which is in the final stage, the rules for issuing electronic money have to be prepared.
According to the draft law, banks, local branches of foreign banks, legal entities that have license for provision of postal and financial services, local organizations in the field of electronic money, as well as local branches of foreign organizations operating in the field of electronic money will be able to issue electronic money.
The Central Bank keeps the right to introduce limitations on the volume of the emissions of electronic money by the payment organization to ensure its stable operation.
In addition, the draft law provides the legal basis for the opening of branches and representative offices of foreign payment organizations in the country.
For opening a branch in Azerbaijan, foreign payment organizations and institutions working in the field of electronic money need a license of the Central Bank. The authorized capital of the local branch of a foreign payment organization should exceed the minimum threshold set by the CBA.
The document also describes the obligations of payment organizations to ensure the safety of customer funds and the necessary measures.
"Creditor claims of the payment organizations (including the demands made during the bankruptcy of the organization) do not cover customers' funbds," the draft law said.
In addition, according to the document, before transaction the payment services operator is required to give information to the client on the data required for payment (or unique identification code), the maximum term of execution of services, cost of services, the applied currency exchange rate and other aspects.