Banking in Russia

There has been a global modernization of Russian banking system where providers offer online and with apps banking more and more. When it comes to cash it becomes significant in small towns of Russia. In this article we are going to give you a full guide on how to deal with banks in Russia:

• the banking system in Russia;
• currency in Russia;
• cash machines and ATMs in Russia;
• banks in Russia;
• banking services in Russia;
• opening a bank account in Russia;
• payment methods in Russia;
• cash;
• checks;
• debit cards;
• credit cards;
• direct debits and standing orders;
• online and mobile payments;
• international money transfers;
• banking fees in Russia;
• offshore banking in Russia;
• ethical banking in Russia;
• banking security and fraud in Russia;
• lost or stolen bank cards in Russia.

The banking system in Russia

In Russia banking system includes two branches- the central bank and commercial banks. The Bank of Russia is controlling the banks of the country and lending institutions and issuing banking licenses. For December 2024, Russia has 350 banks working in Russia where 239 banks have a standard license when their equity exceeds 1 billion rubles and 111 banks have a basic license.

Banks in Russia are not so technologically developed like the Western banks, so we can see that the industry has made a big step forward in recent years.

When it comes to the rural parts of Russia many people there do not have a bank account yet but they use less cash over the last years. In 2012 76% of transactions were successful with cash but by 2023 this number got only 31%. According to the Sberbank data 68% of all no cash transactions were successful with cards in the first half of 2023.

Currency in Russia

The national currency in Russia is ruble with 100 kopeks making up one Russian ruble. The most widespread banknotes in Russia are 50, 100, 500, 1000, and 5000 rubles with coins like 1, 2, 5, 10 rubles.

As of December 2024, exchange rates are as follows:

• $1 = 102,91 rubles;

• €1 = 108,70 rubles;

• £1 = 129,81 rubles.

You can find up-to-date exchange rates on the Bank of Russia‘s website.

Cash machines and ATMs in Russia

ATMs are widespread in big cities like Moscow and Saint Petersburg. Many ATMs from the largest Russian banks offer instructions both in English and in Russian but when it comes to the rural area you should take some money with you.

If we are talking about the security, it is better to use ATM from the biggest banks and avoid using separated ATMs.

If you want to withdraw cash from your foreign card using ATM you will have to pay a fee. It will be charged by your bank rather than the ATM provider and how much you are going to pay is different between providers. In some cases, the fee will be higher if you use ATM from your bank’s competitors.

Banks in Russia

The biggest banks in Russia are like:

• SberBank (state owned);

• VTB;

• Gazprombank;

• VTB24;

• bank Otkritie Financial Corporation;

• bank of Moscow;

• Russian Agricultural Bank (Rosselkhozbank, state-owned);

• Alfa Bank;

• promsvyazbank;

• bank UralSib;

• sovcombank.

When it comes to opening hours of the branch it is different. Normally opening hours are around 9.00 – 17.00 or 18.00 on the weekday and around 9.00 – 14.00 on a Saturday.

Banking services in Russia

As to the foreigners, there are a lot of products from the Russian banks like current accounts to regular savings accounts. Moreover, they offer such additional services like mortgages, company loans, brokerage and investments.

Number one is current accounts. So many current accounts are available in Russia with fee depending on the services. For instance, Sberbank offers everything from standard debit card account to gold account in different currencies.

Number two is credit cards. Credit cards in Russia include air miles, cashback and shopping discounts.

Number three is loans. So many banks offer loans to people with permanent residency in Russia. It depends on the purpose of the loan and your annual earnings.

Number four is savings accounts. Russian banks offer instant access and fixed-term savings accounts. Like in many countries, interest rates are very low now with rates on instant access savings accounts about 0,15%.

Number five is mortgages. Foreigner in Russia normally need a deposit of at least 20% of the property’s price.

Number six is insurance. There are a lot of insurance products from the banks like income protection products and health insurance plans.

Opening a bank account in Russia

In Russia you have a choice to open a bank account in Russia in person at a branch or online. Some employers automatically open a bank account to pay your salary when you start you job. Sometimes to open your account some banks require a letter from your employer.

Payment methods in Russia

Cash

Using cash is different depending on where you live in Russia. Over the last decade, cash has become less popular in Russia but in small towns people still use a lot of cash.

It is known that cashless payments exceed 60% of all transactions in five cities. In Saint Petersburg cashless payments exceed 55% of all transactions but in Moscow cashless payments exceed 54% of all transactions.

Checks

Checks are not so popular in Russia because of their long processing time and banks normally charge a commission to cash them. How much you will need to pay depends on the amount of money being cashed and the currency you are using.

Debit cards

Debit cards are so popular in Russia. Before Visa and Mastercard were the most widespread types. In 2015 the Russian government introduced a new payment card called Mir, after Visa and Mastercard cut off some Russian services because of the sanctions.

Mir payment card becomes more and more popular. As for 2023, just under 75 million debit cards have been issued by Mir. This amounts to 29% of all debit cards in Russia. For now, merchants who turnover more than 30 million rubles per year accept Mir.

Debit cards with contactless technology are now in so many Russian banks. Those payment include tapping your card on a reader rather than entering your PIN number and you can make transactions of up to 1000 rubles using this.

Credit cards

When you open a bank account, you will receive a debit card but you can apply for a credit card too.

So many credit cards are accepted in hotels and restaurants in Russia but sometimes you need to pay cash like at museums, smaller shops, and taking a taxi. When using a foreign credit card, you may need to pay foreign transaction fee and currency conversion fee.

Direct debits and standing orders

Direct debit payments are popular in Russia. If you set up an automatic payment from your bank account for your utility bills you can sometimes benefit from lower transaction fees. Or many banks allow you to pay your bills by bank transfer through their online app or through their ATMs.

Online and mobile payments

Many banks in Russia own their online banking services and apps to conduct the daily tasks without visiting a branch.

Services from online and mobile banking:

• internal and foreign currency transfers;

• bill payments;

• standing orders;

• electronic statements.

International money transfers

Most banks in Russia offer wire-transfer services. If you make an international wire transfer, your recipient will usually receive the funds within a couple of business days. You may need to pay a fee of between 1% and 2% of the amount you’re transferring. Some banks do not make the international transfers online. Thus, you will need to go to the branch with proof of identity and the recipient’s details.

If you want to transfer money to your home country regularly you may open an account in that currency along with your Russian bank account. This can be made via the Russian or Moscow International Bank. This will mean that you can avoid the bad exchange rates.

Banking fees in Russia

In Russia banking fees depends on the type of account that you have. Basic current accounts are available without annual fees, but those with small up-front fees may prove their cost worthwhile by providing additional benefits, such as free ATM withdrawals and money transfers.

Mostly, you may have to pay a fee when withdrawing cash at an ATM in Russia. Charges may be higher if you use an ATM run by a bank other than your own. The amount you’ll pay is different, but it can be more prudent to occasionally withdraw larger amounts instead.

Offshore banking in Russia

Some expats living in Russia think that opening a worldwide offshore bank account is a difficult way to manage their finances.

Such advantages of offshore banking comprises of high levels of customer protection and a range of different investment funds. Offshore savings accounts are mostly in many currencies and geographically portable. But some savings accounts require large deposits upon opening. Previously, Russian investors based their offshore accounts in Cyprus before its financial system crashed. For the present time, widespread offshore investment locations include Luxembourg, Singapore, and the British Virgin Islands.

Ethical banking in Russia

Russian banks are increasingly showing an interest in more ethical and sustainable practices. In January 2021, Sberbank signed up to the United Nations’ principles for responsible banking.

With over 345 signatory banks representing over half of the global banking industry, the Principles are the world’s foremost sustainable banking framework. Through the Principles, banks take action to align their core strategy, decision-making, lending and investment with the UN Sustainable Development Goals, and international agreements such as the Paris Climate Agreement. The Principles for Responsible Banking include the Net-Zero Banking Alliance, which is the climate-focused initiative of this global framework. We strongly recommend that banks mainly operating in developed economies signing the Principles for Responsible Banking framework also join the climate flagship initiative NZBA.

The Association of Banks of Russia has also pledged to implement environmental and social principles.

The Association of Banks of Russia (Association “Russia”) was founded on 13 December 1990 as the Russian Association of Joint-Stock Commercial Industrial Construction Banks “Russia”, becoming the first nationwide banking union in the country.

The Association developed in parallel with the Russian banking system. In view of the economic crisis of 1998, increasing importance of regional banks and merging of many credit institutions, the Association changed its name to the Association of Regional Banks of Russia (Association “Russia”) in 1999. In September 2017, it gained its current name of the Association of Banks of Russia.

Today, the Association unites more than 220 members, which account for over 90% of the country’s banking assets, including large systemically important credit institutions, banks with foreign capital participation, small and medium-sized regional banks, non-banking financial institutions, NGOs and media outlets.

Over the years, the Association has rallied the ranks of Russian bankers, built relationships between the banking business and the government, and effectively protected the interests of banks.

In addition, the Association serves as an expert center of the Russian banking community and actively promotes adjustments to the legislative and regulatory frameworks of the Russian banking sector. Many of our proposals have been reflected in the Russian legislation on banks and banking activities, deposit insurance and credit history bureaus, as well as other regulations issued by the Bank of Russia and the Russian Government.

As a part of its international activities, the Association of Banks of Russia became one of the founding parties of the International Banking Council (IBC), which encompasses banking unions from CIS, Central and Eastern European countries.

At the moment, the Association is in contact with various banking sector institutions from African, MENA, East Asian, Latin American and CIS countries, putting a premium on developing cooperation in all spheres that interest our members.

Banking security and fraud in Russia

Bank fraud and scams are on the rise everywhere, and Russia is no exception. A 2020 survey by the NAFI Analytical Center found that a third of cardholders in Russia had experience fraud, including telephone and money transfer scams, messages or letters with malicious links, and correspondence about card transactions they didn’t perform.

The Bank of Russia warned consumers about the dangers of telephone fraud and how to avoid being scammed in December 2020.

Lost or stolen bank cards in Russia

If you lose your debit card, you should be able to find details of your bank’s call center on its website. You may be charged a fee to have the card reissued, depending on the terms of your account.