New Uzbek Banking Rules Limit Card Withdrawals to Protect Customer Balances

Starting April 15, Uzbek banks are implementing new regulations that prevent full automatic withdrawal of funds from customer bank cards when settling debts. Under the new rules, banks cannot withdraw funds from a card if the remaining balance falls below a certain minimum threshold.

Impact on Automatic Debt Collections and Customer Balances

The payment system Uzcard announced that for automatic, or "akseptsiz," withdrawals—those executed without individual transaction approval—banks must leave at least three times the base calculation amount on customer cards. Currently, this minimum balance is set at 1,236,000 Uzbek soums (UZS).

This means that when banks collect payments for loans, installment plans, or microloans directly from cards, they can only withdraw funds exceeding this minimum amount, preserving a base amount on the card to avoid reducing the balance to zero.

"Banks, even when debt exists, can only withdraw funds beyond the set minimum balance, preventing total depletion of customer card funds," Uzcard noted.

The automatic withdrawal system is primarily designed to ensure timely fulfillment of financial obligations to banks and other institutions. However, under the new rules, bank customers benefit from protection against full depletion of their card balances during such automatic deductions.

Exceptions and Technical Implementation

The restrictions apply solely to automatic, unconfirmed withdrawals. If a customer approves a transaction, such as by entering a one-time code, banks may withdraw the full amount available on the card.

The technical changes required to enforce this policy have been implemented at the payment system level. Some banks have already begun informing their customers about the updated rules.

These regulatory changes are expected to influence the banking sector's operational dynamics in Uzbekistan, potentially affecting transaction volumes and customer behavior related to credit repayments.