The National Financial Market Council (NCFM) has expressed criticism of United Russia’s plan to remove payment fees for housing and communal services. This stance was reported by RBC and reflects the concerns voiced by representatives of the banking sector to the State Duma, the government, and the Federation Council.
In 2020, Vyacheslav Volodin, then the chairman of the State Duma, launched a related initiative. The assessment took about four months and was temporarily paused in May 2020 due to protests from banking industry representatives who feared negative effects on their operations.
Financial institutions warn that barring banks from earning commissions on utility bill payments could trigger a forced optimization of business processes. They argue this would degrade customer service conditions as a result. A key worry is a significant contraction in the payment infrastructure, driven by a sharp drop in the number of bank payment offices whose services are largely funded by commissions. Banks would also faced with reduced deposit rates and higher loan costs to cover the expenses of processing charges that would no longer exist.
The proposal also received support from NSFR for removing such incentives to retirees and welfare recipients, raising concerns about how the financial system would adapt to changes in fee structures.
A more practical approach proposed by financial sector representatives is to shift the responsibility for payment of these services to resource-provisioning organizations on whose behalf the payments are made. In other words, the obligation to pay would be transferred away from banks and toward the entities that supply the resources themselves, as outlined in a letter from financial sector representatives.
Previously, the Central Bank signaled support for removing commissions from housing and communal service payments, aligning with a broader push to streamline consumer payments and reduce friction in bill settlements.
Earlier developments also included decisions by the Russian Council of Ministers that approved wage change indices for housing and communal services for the period 2024–2028, outlining adjustments to compensation tied to these essential services.
In summary, the debate centers on whether removing payment commissions will simplify public payments or inadvertently squeeze the financial sector by diminishing its revenue base. Stakeholders underscore the need for a balanced approach that preserves service quality while pursuing reform, suggesting a shift in payment responsibility rather than a complete elimination of fees where services are delivered. Observers note that any policy move will have ripple effects across payment networks, retail banking, and the affordability of utilities for consumers in both Canada and the United States seeking to understand how such reforms might translate to similar systems in their own markets. The ongoing dialogue continues to emphasize the importance of maintaining reliable payment infrastructure and clear accountability for the costs involved in processing transactions.