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Central Bank Freezes Svyaznoy Banks Deposit Transactions for 3 More Months


27.02.2013. : public
February 27, 2013. The Bank of Russia extended its freeze on Svyaznoy Banks deposit transactions for three more months. The bank reports this was caused by the fact that the company exceeded the deposit growth rates approved of by the Central Bank, RBC daily reports.

The bank owner Maxim Nogotkov told the newspaper that the bank was not forbidden by the Central Bank to accept private individuals savings on its deposits; nor were any other limitations imposed on the asset growth.

Svyaznoy is quite allowed to accept private individuals funds, its just that this has to be done under certain conditions, a bank representative explained. He said the Central Bank extended a limit on deposit transactions in November because Svyaznoy had exceeded the upper limit on the deposit volume allowed by the regulatory body (the exact figures were not disclosed, however).

Despite the Bank of Russias stance, Svyaznoy Bank has no intention of changing its plans, so on March 1, the sales of its all-purpose bank card will be resumed. The new product does have an overdraft limit, but no interest will be paid on the money remaining in the customers accounts. This plastic card type used to be the banks flagship product that allowed its customers to make a profit on the money they had in their accounts.