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8.1.5 ​Banking connectivity
Russia’s Iran envoy insists countries’ banks will be connected “soon”
Russia’s ambassador to Tehran, Levan Dzhagaryan, has said Russia and Iran’s banking systems will be connected soon, according to IRNA.
For at least three years, Iran has repeatedly stated that its banks will be connected to Russia’s banking system, but the commitment is yet to be realised. As part of the new banking connectivity, the Mir payment system, an internal card processing brand operated in Russia in response to Western sanctions, should be linked to Iran’s Shetab internal payment system. Ambassador Dzhagaryan reportedly once again outlined the plan in a meeting with Iranian officials.
Teething problems in achieving the required connections have been diagnosed according to Iranian Informatics Services Company. It claimed Russia would not move ahead with the plan until Iran upgraded certain banking practices. The key issue appears to be Iran’s payments process. It uses the ‘swiping’ method combined with PIN codes, whereas the Russian process uses the far more international ‘chip and PIN’ approach.
So far, only a handful of ​Iranian banks have invested in chip and pin technology​. ​They include Bank Shahr “City Bank” and Bank Mellat. Iranian retailers, meanwhile, still have little knowledge of the system.
"The Russians believe that as banking cards in Iran are mostly magnetic and less secure than Russian cards, in the event of counterfeit cards, Iran will suffer the damage, and thus have to pay the costs,” Abutaleb Najafi, the director of Iranian Informatics Services Company, was quoted as saying.
8.1.6 ​Bank news
Iran introduces restricted bank opening hours to help combat coronavirus
The Coordination Council of the State Banks of Iran has announced that all state-owned lenders across the country must introduce limited opening hours to help combat the coronavirus, IRNA has reported.
“The working hours of state banks across the country will be from 8am to 12:30-1.30pm,” the council announced in a statement.
Iran is in the midst of a severe coronavirus outbreak. Many people are choosing to not go to work, with the impact on the workforce exacerbated by the government closing schools across the country to help stem the spread of the virus. As of March 2, there were officially 1,501 confirmed coronavirus cases in Iran, with 66 deaths.
Also as part of the response to the epidemic, government institutions and the parliament have been closed down until further notice.
Trade between Iran and its neighbours has ground to a halt. Several countries have closed their borders to Iranians.
Video footage circulating online suggests the Tehran Grand Bazaar is now all but deserted during the working week.
8.2 ​Central Bank policy
Central bank clears developed-in-Iran payments app Digipay
Developed-in-Iran payments service provider (PSP) app Digipay has been given the green light for operation by the Central Bank of Iran (CBI), according to ItMen.ir.
The app uses the familiar typography of the so-called “Iranian Amazon”, domestic e-commerce giant DigiKala. It was launched by the parent investment company behind DigiKala, Sarava Pars,
DigiPay is one of a growing number of digital payment solutions developed in
35​ IRAN Country Report​ March 2020 www.intellinews.com