Uzbek Banks Limit Card Withdrawals to Preserve Minimum Balances Amid Debt Repayments

Starting April 15, Uzbek banks have implemented a new policy restricting the full withdrawal of funds from customers' bank cards during automatic debt repayment processes. According to the new regulation, a minimum balance equivalent to three times the base calculation amount—currently 1,236,000 Uzbek soms—must remain on the card, even when repaying loans, installment payments, or microloans.

Financial Implications of the New Withdrawal Limits

This policy change directly impacts banks' ability to recover debts through automatic deductions, known as akseptsiz yechib olish, where funds are withdrawn without individual transaction approval. Banks can now only withdraw amounts exceeding the mandated minimum balance, thus preventing customers' card balances from reaching zero during debt servicing.

"Banks will no longer be able to fully deplete customers' card funds automatically," a payment system source confirmed. "The new minimum balance requirement is designed to protect customers from losing all their funds while still enabling banks to enforce debt repayments."

From an investor relations perspective, this introduces a new dynamic in banks' liquidity management and potentially reduces the immediacy of debt recovery from card accounts. Financial analysts may anticipate a modest impact on banks' short-term cash flows, although the policy aims to improve consumer protection and maintain transactional flexibility for cardholders.

The restriction applies solely to automatic deductions for debt repayment. Customers retain the ability to authorize full withdrawals manually, including via one-time codes or individual transaction approvals, which remain exempt from this minimum balance rule.

"The new regulation balances banks’ need to collect debts with customers’ right to retain accessible funds on their cards," a banking sector expert noted.

Technically, payment systems have already implemented the necessary adjustments to enforce this policy. Several banks in Uzbekistan have begun notifying their clients about the updated withdrawal procedures to ensure awareness and compliance.

Financial stakeholders, including investors and creditors, should monitor the policy's effects on banks' earnings, particularly regarding non-performing loans and microloan portfolios, as the new balance maintenance could influence repayment schedules and cash flow timing.