The right to issue electronic money is vested in Belarusian banks

January 22, Minsk /Anna Kot - BELTA/. The exclusive right to issue electronic money in the Republic of Belarus is vested in banks and non-bank credit and financial organizations (NBCFOs) of Belarus. This is stipulated by the Law "On Amendments and Additions to the Banking Code of the Republic of Belarus," which entered into force today, as reported to BELTA correspondent by the National Bank.

The new version of the Banking Code of Belarus establishes the main approaches to conducting operations with electronic money. Thus, electronic money issued by banks can only be denominated in Belarusian rubles. Electronic money can be purchased from the issuing bank or its agents. Legal entities and individual entrepreneurs who are residents and have an account in a Belarusian bank can act as agents of issuing banks. The rules developed by the National Bank in accordance with the Banking Code stipulate that the activities of legal entities, individual entrepreneurs, and individuals related to the issuance, distribution, use, and redemption of electronic money issued by both residents and non-residents are carried out exclusively through Belarusian banks.

Electronic money will be understood as units of value stored in electronic form, issued in exchange for cash or non-cash funds, and accepted as a means of payment when conducting settlements with the issuing bank, as well as with other legal entities and individuals. In this case, electronic money will represent an unconditional and irrevocable obligation of the bank that issued the units of value to refund the funds upon presentation of these units of value by any legal entity or individual.

The inclusion of the essence of the concept of "electronic money" in the Banking Code allows for the qualification of this means of payment regardless of the entity issuing it, and creates conditions for preventing the illegal circulation of electronic money in Belarus, the issuers of which are not Belarusian banks or NBCFOs of the republic, the National Bank explained. In general, the presence of these norms provides holders of electronic money in Belarus with appropriate guarantees for the redemption of electronic money, as well as increases the transparency and controllability of operations with electronic money, experts note.

Currently in Belarus, OJSC "Belgazprombank", OJSC "Technobank", OJSC "Paritetbank", CJSC "Credexbank", CJSC "Trastbank", OJSC "Belinvestbank", OJSC "ASB Belarusbank", and "Priorbank" OJSC operate with electronic money. Electronic money is used by its holders for payment of goods and services. This may include payment for fuel and related goods at filling stations, utility services, mobile operator services, internet providers, payment for goods (services) on the Internet, and making transfers between individuals not related to business activities.

Furthermore, according to the updated Banking Code, a new payment document has appeared in Belarus – a payment order, issued by a bank when carrying out money transfers in Belarusian rubles and foreign currency. Banks are obliged to switch to using payment orders in their operations during 2013. A number of amendments to the Banking Code also concerned the use of bank guarantees and letters of credit, which are widely used in international settlements. These amendments are aimed at unification with international banking practices and rules. In particular, the conditions contained in a bank guarantee have been clarified, the requirement for strict adherence to the irrevocability principle of the guarantee is enshrined, and the concept of a transferable guarantee is defined. -0-