Central Bank of Russia considers implementing cooling-off period for withdrawing funds from ATMs to be premature, may return to matter later

MOSCOW. Feb 20 (Interfax) - The Central Bank of Russia has considered the initiative on the part of law enforcement agencies to implement a cooling-off period for clients to withdraw their own funds from ATMs to be premature, though does not rule possibly returning to the matter at a later date, Central Bank information security department director Vadim Uvarov said.

The initiative was discussed in preparation for a law passed in February that implements a cooling-off period for a number of consumer loans and also restricts cash deposits into an account via tokenized/digital cards totaling more than 50,000 rubles within 48 hours of the card being issued.

"There was this initiative during discussions on the law prior to it entering into force. Law enforcement officials were just considering the matter of applying the cooling procedure to withdrawing one's own cash. However, we were unfortunately unable to formulate clear criteria. For example, according to which criteria would you go a financial institution, want to withdraw your own funds, and you are prohibited from withdrawing them," Uvarov said during the Cybersecurity in Finance forum.

"We considered the mechanisms for implementing a cooling period specifically for one's own funds to be rather unfounded. Perhaps you require them on short notice to reach a decision, for example, about treating your loved ones, someone else, and we are limiting your access. Therefore, we have considered the measure to be premature for the time being. Perhaps we could return to considering the initiative again if the day's realities require it," Uvarov said.

President Vladimir Putin on February 14 signed a law implementing a cooling-off period for consumer loans. The law stipulates that banks and microfinance organizations will not be able to transfer funds to the borrower sooner than in 4 hours if the loan is from 50,000 to 200,000 rubles, and sooner than in 48 hours if the amount exceeds 200,000 rubles. The new requirements do not affect loans with guarantors, secured loans for cars in the case of transferring funds to car dealers, refinancing without increasing the loan amount, as well as loans issued through an authorized person. There is also an exception for loans to pay for goods and services if the funds is transferred directly to the seller, except for online purchases.