New Limits on Bank Cards Aim to Curb Fraud and Enhance Financial Security

Several banks have already started implementing their own restrictions on the number of bank cards a single customer can hold.

This fall, Russia will introduce new regulations limiting the number of bank cards an individual can possess. According to a report from Izvestia citing Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, the initiative proposed by the Central Bank will restrict each person to a maximum of 20 cards in total, with no more than five issued by any single bank. This measure aims to combat fraudsters who open accounts under false identities—known as droppers—to siphon stolen funds.

Currently, there are no legal limits on the number of cards a client can have; it depends entirely on each bank's policies. Some consumers hold dozens of cards to capitalize on various benefits such as cashback offers, bonuses, discounts, and interest rates. However, Elvira Nabiullina, head of the Central Bank, previously emphasized that "no ordinary person needs 100 cards."

Statistics show that, on average, each Russian citizen—including children—holds 3 to 4 cards. VTB Bank reports that the total number of bank cards has increased two to threefold over the past five years. Yet, only 0.25% to 0.5% of active clients possess more than 20 cards. Financial expert Andrey Barkhota suggests these users are often inexperienced and trying to find the most advantageous offers. The Financial Literacy Development Association considers holding more than eight cards to be impractical. Some banks, such as Sovcombank and Absolut Bank, have already set internal limits, allowing clients no more than five cards, including virtual and credit cards.

Implementing this new regulation will require technological upgrades, including enhanced data sharing between banks and possibly integrating credit bureaus into the process. The Financial Literacy Development Association acknowledges that this will incur additional costs.

Fighting droppers is not a new challenge. Since May 15, a transfer limit equivalent to approximately $1,300 USD has been in place for customers suspected of such activities. Additionally, legislation introducing criminal liability for droppers is underway. Experts warn that without a clear enforcement mechanism, fraudsters could easily bypass restrictions by opening new cards after older ones are blocked.

If the Central Bank's initiative is successfully implemented, it will make fraudulent activities more difficult and increase transparency within the banking system. However, customers with active financial lives may face some inconveniences as a result.

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