Updated MFI Verification Rules Take Effect in Russia from April 24
Starting April 24, new basic standards for microfinance institutions have come into force in Russia, following approval by the Central Bank. The changes tighten how personal data is verified during online loan applications, with a stronger emphasis on validating applicant identity and credit history. The updated rules also require confirmation that the person is actively using the provided account and phone number used in the application, reducing opportunities for misuse. The information comes from a major regional publication, which reports these developments in the sector.
In the past, many MFIs accepted a copy of a passport and a phone number as sufficient verification to issue funds. The new framework shifts that approach by demanding more robust checks. Bank staff will now verify the passport’s validity, examine the authenticity of the applicant’s photo, and cross-check details of the borrower’s credit history. This layered verification process aims to confirm that loan requests originate from the rightful owner of the data and that the information aligns with active usage of the stated bank account and contact numbers.
The central aim of the revisions is to curb fraud in online lending. Recent reports indicate that the central bank handled thousands of complaints involving fraudulent loans obtained using someone else’s personal data. By strengthening verification at the point of application, authorities hope to reduce instances of identity misrepresentation and unauthorized access to credit facilities. The changes reflect a broader shift toward more secure digital lending practices and closer scrutiny of online financial activity.
Historically, there was a period when authorities urged financial institutions to synchronize debt collection processes across banks and collectors to ensure consistency in how cases were managed. The current updates continue that drive toward harmonized procedures, improving transparency and accountability in the debt collection landscape. Data protection and accurate identity verification are positioned as foundational elements of this modernization effort, with the Central Bank signaling ongoing supervision and guidance for MFIs as they implement the new standards. (attribution: Central Bank of Russia)