Iran, Russia Negotiating Integration of Bank Card Systems – Central BankCC BY-SA 2.0 / Ensie & Matthias / Central Bank of Iran, TehranBusiness14:43 25.12.2017Get short URL1120
MOSCOW (Sputnik) – Tehran and Moscow are conducting tests to link their bank card systems and are in negotiations over a formal accord between the central banks in order to overcome legal issues, Director of the Payment System department of the Central Bank of Iran Davood Mohammad Beigi said Monday.
“At present, Iran has the closest ties with Russia in the field of international credit cards and good measures have been taken in technical terms … in recent months, tests have been carried out less regularly due to some legal problems. In order for any relations to be established, the two countries and their respective central banks need to reach agreements,” Beigi said, as quoted by the Mehr news agency.
The countries are expected to cooperate on magnetic cards, the official added.
READ MORE: Iran’s Central Bank Allows Issue of Credit Cards for First Time
“They will be normal debit cards which can be used by the customer abroad. With respect to the rate agreed upon between the customer and the bank, the bank pays the amount in a foreign currency and will withdraw the equal amount in Rial from the person’s bank account,” Beigi explained, while answering the question on whether the cooperation involves the currency cards or the standard ones.
Tehran was unable to integrate its banking sector internationally due to the Western sanctions, imposed over its nuclear program. Once the restrictive measures were lifted due to the historic JCPOA reached in 2015, Iran started to gradually link its banking sector with foreign countries.
In September, Tehran allowed Iranian financial institutions to issue credit cards for the first time in its history.