Managing directors of banks and credit institutions have called on the Central Bank of Iran to revise regulations related to the verification of customers’ identity to enable banks offer a wider range of services without requiring customers’ physical presence.
“The banking network has been working to provide services via electronic platforms requiring customers’ physical presence at the branch in line with social distancing requirement. However, we believe some regulations need a reconsideration to broaden the scope of e-banking during the pandemic,” reads a letter signed by Kourosh Parvizian, head of the Private Banks and Credit Institutions Association, and Mohammad Reza Hosseinzadeh, head of the Coordination Council of State and Privatized Banks.
As per the Anti-Money Laundering and Countering the Financing of Terrorism Law, customers must come to the bank for confirming their identity, even though “many state organizations make use of existing infrastructure to verify customers’ identity online.”
Banks say obliging customers to be present at the branch is unnecessary and unwanted in the Covid conditions. “Online verification of customers’ ID could exclude foreigners or legal entities,” the senior bankers say.
Banks have been instructed to expand electronic services to reduce the physical presence of staff and clients in line with nationwide lockdowns and restrictions to curb spread of the Covid-19 plague.
Customers have been encouraged to use online banking and those who prefer physical presence in banks will be charged extra if the service(s) are available online. The CBI has also required lenders to provide customers routine banking access, such as opening accounts and requesting loans, via online platforms to the extent possible. However, clients need to go to banks if and when needed to have their IDs confirmed.
As for other banking measures to contain the spread of the infection and reduce customers' physical presence, the CBI increased the daily cap for card-to-card transfers from 30 million rials to 60 million rials. The cap was later increased from 60 million rials to 100 million rials during the two-week compulsory lockdown announced by the government in mid-November.
Validity of debit cards are extended automatically for one year without card-holders having to approach banks. In addition, banks can issue gift cards bearing up 20 million in credit compared to the maximum five million rials in the past.
The CBI has also urged the people to use electronic payment instruments and avoid using banknotes to avoid infection.
Central bank officials said earlier that the regulator was expanding infrastructure for contactless payment via QR codes and digital wallets to help curb the deadly virus via banknotes or use of the highly popular debit cards in retail outlets.
