Russian Central Bank allows for possibility of attracting private capital to National Payment Card System going forward - Nabiullina

SOCHI. Oct 17 (Interfax) - The Central Bank of Russia allows for attracting private capital to the National Payment Card System (NPCS) going forward, though the regulator opposes monopolization in private hands, Central Bank Governor Elvira Nabiullina told reporters on the sidelines of Finopolis 2024.

"It could be possible to attract private capital to the NPCS going forward. However, what is important regarding the NPCS is that it is a structure, an organization, which ensures developing the national financial infrastructure equitably from everyone, and which allows all participants in the financial market to use its services equally. Therefore, it is very important that the structure does become monopolized in private hands even if private capital is attracted," Nabiullina said.

"In my opinion, the matter is not very urgent at this time, and we could return to it later," Nabiullina said.

The CBR may return to the issue of corporatizing the NPCS in two to three years, First Deputy Governor of the Central Bank Olga Skorobogatova told journalists on the sidelines of the Finopolis forum. It is important that players from various sectors are included in the company's shareholders, she said.

"When we discuss the issue of corporatizing [it], and this is stipulated by law, I think we will actually return to this in two to three years, the main thing is that there are various players there. I mean that, when we discuss this and when the decision is made, we want the shareholders to include various players who will ensure the development and neutrality of the infrastructure," Skorobogatova said.

The CBR wants to avoid a situation where national infrastructure is owned by an individual group or player.

"We are mentally prepared for the arrival of several strong players from various sectors," she said in answer to a question as to whether the CBR is ready to allow large technology companies to invest in the NPCS.         

The Russian government created the National Payment Card System in 2014 after a number of sanctions had been imposed against Russia. The NPCS announced the launch of issuing the first Mir cards in December 2015. The Central Bank of Russia is the sole shareholder in the NPCS.