Overview of the situation with Qiwi Bank and related events
Earlier actions by the Central Bank led to the revocation of the license for Qiwi Bank on multiple occasions. In response, QIWI Bank implemented restrictions on certain transactions, and last summer regulators required the provider to partially limit withdrawals from wallets to bank accounts and cash withdrawals to comply with oversight measures.
The Central Bank explained that the bank’s activities were frequently linked to shadow trading, including fund transfers to crypto exchanges, illegal online gambling sites, and bookmakers. The regulator highlighted cases where Qiwi wallets were opened using citizens’ personal data without their knowledge. Information about illegal transactions and attempts to bypass anti terror safeguards was forwarded to law enforcement authorities by the Central Bank of Russia. After the license cancellation, no further comments were issued by the press service of the Central Bank of socialbites.ca.
What should investors do?
The Deposit Insurance Agency will begin paying deposit insurance compensation to bank depositors by March 6 of a given year, with coverage up to 1.4 million rubles for 100 percent of deposits held in a bank. The preliminary estimate for insured payments stood at about 4.6 billion rubles. Those who have deposits in bank accounts will be eligible for compensation, subject to the rules of the insurance system.
Interest on deposits is determined by the terms of each bank deposit agreement at the time of the insured event. The compensation calculation includes deposits in foreign currency at the rate set by the Bank of Russia on the day the insured event occurred. An analyst from Corporate Finance Bank reviewed Qiwi Bank’s report on the Central Bank site and summarized that as of early January 2024 individual deposits were modest in scale. The data is highly aggregated, so precise totals are difficult to confirm from public reporting.
Depositors are advised to contact the agency banks appointed by the Deposit Insurance Agency for compensation. Keeping a copy of the bank deposit agreement and screenshots from the bank’s mobile app showing the savings balance can simplify the process.
What should wallet owners do?
Qiwi wallets were used by some to pay for services including international ones and to top up balances for various platforms. The Contact payment system used in Qiwi services has ceased functioning, and topping up wallets or withdrawing funds is no longer possible through that channel. The Central Bank has stated that deposit insurance does not apply to funds in electronic wallets once the bank license is canceled and withdrawal issues arise for wallet users.
As of the beginning of 2024, the typical wallet balance was around 355 rubles, with roughly 13.8 million active wallets reported. An expert from the Federal Financial Literacy Center noted that it is unlikely that money can be withdrawn from wallets in many cases, but it may be possible for some funds to be recovered if creditors’ demands are met. Those affected are encouraged to file a formal complaint with the Central Bank through official channels and to monitor responses. It is also possible to pursue the matter through public service portals, though timing and results vary.
Additionally, Qiwi Bank borrowers should ensure they address their outstanding loans because the right to seek new loans is transferred to the Deposit Insurance Agency and any unpaid debts may be pursued in court.
What made Qiwi Bank different?
Some observers hope that the wallet services will resume and that the situation is temporary. They note that Qiwi has historically provided critical payment capabilities during sanctions when international card networks faced difficulties. The broader context suggests that regulatory actions are aimed at curbing irregular financial activity while balancing payment needs for users in the region.
Experts acknowledge that wallet use may have begun with permission concerns, and authorities acted on available signals that led to the license cancellation. Amid uncertainty, officials advise not to panic and to engage with the Central Bank to seek clarification and guidance. Citizens are urged to submit formal inquiries and wait for official replies while monitoring any updated information about the situation.