Banks reduce credit card spending limits by 20% for its customers
In a significant shift, the number of credit card issuances in Russia has decreased by a staggering 59% year-on-year, according to recent reports. This trend is primarily attributed to a combination of international sanctions and domestic regulatory tightening.
One of the key factors contributing to this decline is the suspension of Visa and Mastercard operations in Russia. From January 1, 2025, the security certificates for some Visa and Mastercard cards issued in Russia became invalid. This has effectively isolated the Russian card payment system from these major international networks, reducing the attractiveness and utility of credit cards for consumers and merchants, leading to fewer new card issuances.
Another significant factor is the shift to domestic transaction processing. While domestic transactions within Russia continue to be processed by the central bank, the absence of international card network support makes credit cards less appealing.
Russia has also introduced new anti-fraud measures and tighter controls on money transfers starting mid-2025. Suspicious cash withdrawals now lead to card blocking, and limits on money transfers without bank accounts have been drastically reduced. These restrictive regulations disincentivize credit card use and issuance.
There is also a growing concern over electronic fraud involving fake electronic digital signatures and other cybercrime related to financial transactions. The difficulty in verifying signatures and risks related to fraudulent electronic transactions likely contribute to more cautious issuance and acceptance of credit cards.
The economic sanctions imposed since the 2022 invasion of Ukraine have further restricted international financial operations and credit products such as credit cards. Multiple sanctions have hit Russian banks, limiting their access to international payment infrastructures like SWIFT.
Banks in Russia are also becoming less friendly towards credit card holders who prefer to borrow money only during grace periods. The average credit card limit has fallen by approximately 20% in 2025, reaching slightly over 100,000 rubles. Some banks are reducing the limits of existing clients to zero.
The overall number of inactive credit card holders in Russia has decreased, but this could be due to banks closing inactive accounts due to regulatory pressure. The total volume of approved credit card limits has decreased by 55%.
The Bank of Russia's tight monetary policy is forcing banks to carefully assess the credit history and maximum debt burden (PDL) of clients, with loans not being issued to borrowers with a PDL of over 50%. Consumer lending issuance has halved in 2024 and is expected to decrease by the same amount in 2025.
Despite these challenges, some bank clients are using credit card funds for deposits due to the sharp increase in deposit interest rates. This contradicts the initial purpose of the product, according to Vladimir Stasevich, head of retail banking at the TKB banking group.
Credit card delinquency among 18-19-year-olds has doubled in a year, highlighting the impact of these changes on younger generations. In the first five months of 2025, twice as few new credit cards were issued compared to the same period in 2024. The conditions and possibilities for opening new credit cards in Russia have become significantly stricter since the second half of 2024.
This decline in credit card issuance is a clear reflection of the economic and regulatory challenges facing Russia. As the situation evolves, it will be interesting to see how the Russian financial sector adapts to these changes.
In light of these economic challenges, individuals may instead consider alternative means for their personal-finance management, such as exploring different avenues for investing and rethinking their business strategies to limit reliance on credit cards. Consequently, the decline in credit card issuance could fuel a growing interest in understanding more about personal-finance and investing in the future.
With tighter regulations on money transfers, fraud prevention measures, and banks reducing credit card limits, Russians might find it more difficult to secure new credit cards. This trend suggests that businesses specializing in personal-finance and investing services may see increased opportunities as people seek alternatives to traditional credit card solutions.
