Encouraging increased competition among payment service providers is welcome, according to a statement issued by the mission of the International Monetary Fund.
The statement refers to amendments made to the Organic Law on the National Bank and the Law of Georgia on Payment Systems and Payment Services, which were adopted by Parliament at the third reading last week. The amendments cover four main areas.
Under the changes, in order to promote competition in the payment market and increase efficiency, the National Bank of Georgia will open settlement accounts for payment service providers. Having such accounts will allow providers to carry out settlements without the mediation of commercial banks, reducing dependence on banks, lowering costs, and easing operational restrictions. As a result, payment transactions for customers of registered payment service providers will be executed more quickly and flexibly.
Through these amendments, non-bank institutions involved in open banking are given greater opportunities to compete with commercial banks, introduce innovative payment services, and offer customers faster, simpler, and more affordable solutions.
In addition, to strengthen consumer protection, the maximum value of disputes reviewed by the NBG Dispute Resolution Commission will increase from GEL 50,000 to GEL 100,000.
According to the same amendments, virtual asset service providers will be placed under the full supervision of the National Bank of Georgia.
The IMF mission, led by Alejandro Hajdenberg, was in Georgia from December 10 to 16. During the visit, mission members assessed recent economic and financial developments in the country, as well as progress made in achieving reform priorities.
