OREANDA-NEWS.  February 20, 2014. The Central Bank of the Republic of Azerbaijan presented a stimulating campaign on Leader bank in cashless payments and Leader bank in e-banking nominations to develop cashless payments in the country.

Mr. Alim Guliyev, First Deputy Governor of the CBA, in his opening speech noted that in a modern society development of a cashless payment system is an indicator of a high culture to ensure transparency and support economic activity. He emphasized that Mr. President Ilham Aliyev set the expansion of cashless turnover as a significant target for government structures in the new quality stage of socio-economic development of the country.

The CBA is also mandated to expand cashless payments in the country as a priority issue and is continuously implementing various projects aimed at establishing, developing and popularizing cashless payments infrastructure.

Mr. A.Guliyev, underlining the significance of broader cashless payments, told that the banking system widens its resource base, interest rates decline, and capitalization possibilities of the economy increase as a result of this expansion, which hugely contributes to economic growth. Cashless operations ease macroeconomic management and widen impact channels on the economy. The dominance of cashless payments leads to a high financial discipline and transparency of the economy.

Over the last 10 years, the country economy witnessed a significant rise in cashless turnover as a consequence of the establishment of the state-of-art National Payment System by the CBA. The share of cash in manat in broad money supply has declined 20 p.p. since 2003.

The size of payments made through the Electronic National Payment System Infrastructure in 2013 was AZN 128 bln., 2.3 times higher than GDP.

The country leadership has recently set a number of tasks on making taxes, customs, charges, rentals and other budget payments only through banks or payment cards with a view to expand the volume of cashless settlements and improve e-government building in the country.

Effective implementation of the set tasks in a short-run vitalized integration of relevant government entities’ internal information systems to the National Payment System (NPS).

The CBA carried out a special project to achieve the targets ahead and ensure levying taxes, customs, charges, rentals and other budget payments using cashless payment mechanisms. In a short period of operation, the Government Payment Portal (GPP) has become one of the key components of social importance of the NPS infrastructure.

The internal information systems of 5 utility service organizations and 7 government entities were noted to have been integrated to the GPP. The number of documents on the GPP made up 24 mln. pcs., y.o.y. increase being 4.3%, and the size of payments made up AZN 713 mln., y.o.y. increase being 48.2%.

Currently, in over 1500 payment points of 42 banks and the Azerpost LLC altogether payments are received in cash, and cashless through payment cards using Internet resources of the system.

Further expansion of the NPS infrastructure ensured population’s and economic entities’ access to financial services in regions. In total, half of 700 bank branches across the country operate in regions as of 1 January 2013. 50 new bank branches were licensed in 2013, 19 of which were launched in regions. The number of post offices relevantly licensed by the CBA to render financial services reached 63, and postal departments within them numbered 952.

The key objective for 2014 is to use existing capacity and infrastructure options in a more efficient way, and expand the variety, effectiveness and applicaton scope of cashless payments, benefiting from international practice. Moreover, banks should constantly focus on promo campaigns with the aim of enhancing high payment culture, and skills in using e-payment services and cashless payment tools.

Furthermore, it was noted that the CBA established two more new nominations on the development of cashless payments in 2014: Leader Bank in E-banking Development – to stimulate e-trade, and Leader Bank in Cashless Payments of Economic Entities – for banks whose customers incrementally make cashless transactions via the POS terminal network. Additionally, the Bank will hold an article contest on Fast development trends in cashless payments: realities and prospects amongst journalists. Terms and conditions per nomination will be placed on the CBA website. All relevant measures will have a significant contribution to development of a cashless society.

Mr. A.Guliyev expressed his gratitude to all banks participating in events on nominations of Leader bank in cashless payments and Leader bank in e-banking for their relevant activities and for collaboration, and announced the list of winners and awarded banks:

On nomination of Leader bank in cashless payments
I place: “Bank Of Baku” OJSC
II place: “Azerbaijan Senaye Bank” OJSC
III place: “Demirbank” OJSC
On nomination of Leader bank in e-banking
I place: “International Bank of Azerbaijan” OJSC
II place: “Bank Respublika” OJSC
III place: “Bank Of Baku” OJSC

Within the campaign, appreciation letters were presented to a number of banks for excellence in cashless payments (“Kapital Bank” OJSC, “Unibank KB” OJSC, “Yap? Kredi Bank Az?rbaijan” CJSC, “AGBank” OJSC, “Accessbank” CJSC, “Pasha Bank” OJSC, “Bank Silk Way” OJSC, “Amrahbank” OJSC, “Nakhchivanbank” OJSC).

The event was attended by the representatives from the CBA, the Azerbaijan Banks Association and commercial banks, heads of card processing centers, as well as media representatives.