Starting May, all Russian pensioners can enjoy a brand-new, no-cost advantage.
Reducing Bank Fees for Vulnerable Populations
Economist Stanislav Paulauskas, a member of the expert council under the State Duma's Financial Market Committee, has floated a proposal to help reduce bank fees for those in delicate financial situations. He believes the state should take further steps to alleviate fees, particularly within the System of Quick Payments, where transfers between one's own accounts have become nearly cost-free [Rossiyskaya Gazeta (18+)].
However, when individuals want to transfer money between different banks, fees can still be exorbitant. Thus, Paulauskas suggests expanding benefits for pensioners and social program participants by setting maximum fees for these categories [1]. He also advocates for clear disclosure of tariffs – providing tables and warnings about potential fees [2].
Recent inflation spikes (10.3% as of March 2025) and ongoing sanctions have intensified financial pressures on low-income groups. Despite this, a new OFAC license (April 2025) allows certain payments with Central Bank-linked entities, focusing primarily on taxes and import duties rather than social payments [3].
Given this context, fintech-based solutions like Bybit and Profee may serve as supplementary avenues for low-cost transfers [4]. However, they often demand technical expertise and might not fully address the needs of more vulnerable populations. In the absence of affordable, official channels, these groups may turn to informal networks or higher-risk alternatives, an issue yet to be addressed by specific policy proposals.
If Paulauskas's initiative garners state-level support, pensioners and other vulnerable citizens will stand to benefit from reduced bank transfer fees.
*Sources: [1], [2], [3], [4]
By the way, did you know pensions won't be distributed in those old-school workbooks anymore? Yeah, those got the ax!
Further Reading:- * Russians to receive up to 6,000 rubles in additional pension payments from May 5- * Pensioners to receive up to 3 million rubles: who and why will get large sums- * Tenants may have two utilities cut off at once for unpaid utility bills - even flushing the toilet won't be possible- * 5 habits that kill your car's engine
- In light of the proposal to reduce bank fees for vulnerable populations, pensioners may also receive benefits with maximum fees set for their transfers.
- Further steps are needed to provide clear disclosure of fees, such as tables and warnings, to ensure full transparency for all customers.
- As fintech-based solutions might not fully address the needs of vulnerable populations, personal-finance education and affordable, official channels should also be addressed to prevent reliance on informal networks or higher-risk alternatives.
- With the changes in the distribution of pensions, it's important for pensioners to manage their finances carefully to make informed decisions and utilize available resources effectively.
