Banks will lose one of their ways to earn money from clients in Russia
From October 1, Russian banks will face new restrictions that will affect their ability to earn money from clients.
These changes concern the imposition of complex insurance services on citizens when concluding contracts.
Associate Professor of the Department of State and Municipal Finance at the Plekhanov Russian University of Economics Meri Valishvili gave a commentary on the topic in an interview with Prime .
She stated that a law tightening the conditions for concluding life insurance contracts will come into force on October 1.
This innovation will limit the ability of banks to make money from citizens through insurance products.
Valishvili emphasized that life insurance often turns into unfair sales by banks.
Clients receive banking products without full disclosure of risks and conditions.
As a result, people who are not financially literate do not receive the income they expected.
However, with the new restrictions, banks will be forced to reconsider their strategies.
