Starting April 1, Uzbekistan will mandate that payments for automobile fuel or gas must be made exclusively through bank cards or electronic payment systems. This change is expected to pose challenges for citizens who have cash but lack funds on their cards. Economist Otabek Bakirov, considering consumer interests, has called for the elimination of fees for topping up bank cards with cash, at least during a transitional period.

Bakirov argued that this initiative should be proposed by the Central Bank. In an interview with Kun.uz, he stated: "All fees related to cards and cash top-ups should be zeroed out, at least for the transition period. Commercial banks or payment organizations will not do this voluntarily because there are fees set by payment systems. The regulator must step in here. I am waiting for some signal, for example: 'Comrades, from April 1, we are switching to cashless payments, all fees related to incoming operations are canceled, and fees for outgoing operations are left to market conditions'."

Bakirov warned that if transaction costs, i.e., fees, are not regulated, it could have a reverse effect. He said: "During a certain period, deals may not be completed. Or, as often happens with cars: purchase-sale is not formalized, and the transaction is carried out by power of attorney. This will have a reverse effect, people, consumers will still look for [workarounds – ed.] paths. It is time to think about such measures. To think about regulation. This regulation, as I said, should cover the entire chain – the payment system, payment organization, banks, all processes related to this."

The banking specialist noted that shifting the purchase and sale of cars and real estate entirely to cashless form is actually an opportunity for commercial banks. He stated: "Today, 5-10% of cars or apartments purchased on credit go through banks. Now imagine if 100% of transactions go through banks, won't the volume increase many times over? Banks will come to understand: 'Even if I reduce fees, I will still get the same income.' Many do not understand this yet, fearing that bank incomes will decrease. No, incomes will not decrease. Because the volume will increase many times over."

Another banking specialist, Ismail Turapov, believes that by minimizing fees for converting cash into cashless form, banks can attract customers and strive to keep deposited funds within the banking system. He said: "To accustom people, if we promote the idea 'keep money on the card, you will lose nothing,' then money, firstly, will come into the banking system. Secondly, banks will compete for the client. If you withdraw deposited money at an ATM, they will take a percentage. The bank will say: put it on deposit with us, or offer some other product. That is, the bank will strive to keep the money with itself."

Source: kun.uz