In its information letter to banks, the regulator advises them to choose the format for providing financial services based on the number of residents and their income levels.
For example, the Bank of Russia recommends that banks retain proper branches or additional offices, install ATMs, and open one-stop shops in post offices supporting most banking transactions in areas with a population of more than 3,000 people. In rural areas with less than 3,000 residents where maintaining a branch or an additional office may not be economically efficient, banks are advised to organize mobile offices or off-site services, install cash deposit machines, and ensure that residents can withdraw money from a bank card at a post office or a shop's cash desk by concluding an agreement with a trade and service company. The cash-out service has become popular in recent years among residents of remote and sparsely populated areas.
It is also important to consider the level of income of rural residents and their needs. People need to be informed about what financial services they may be offered in a particular area, how to receive them, as well as the basic parameters and risks of these products and services, and any fees.
“We expect major banks to stay in rural areas and effectively combine remote and simplified service formats based on the needs of residents of particular communities and their own economic model. It is also important that other credit institutions follow suit. It will be easier for them to do it, as they can use the existing practices of the major banks,” said Mikhail Mamuta, Head of the Service for Consumer Protection and Financial Inclusion at the Bank of Russia.
Additionally, banks are recommended to grant unrestricted access to their offices and make services accessible to aged individuals, physically challenged persons, and disabled persons.
The recommendations are based on practical experience from major banks—members of special working groups under the Bank of Russia. These banks consistently work to retain their presence in rural areas as well as in remote and sparsely populated regions.
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