New regulation of the National Bank of Georgia regarding banking operations of persons over 60

Details of the regulation

From September 1, an order of the President of the National Bank of Georgia came into force, which establishes a mechanism for pausing banking operations for customers over 60 years old. According to the regulation, a bank or payment service provider is obliged to temporarily pause or refuse to execute an operation if it is considered to carry a "high risk." Radio Tavisupleba+1

The restriction applies if several conditions are met simultaneously: the customer is over 60 years old, the amount exceeds 500 GEL, and the operation is related to investment purposes, the gambling business, virtual assets, or "unusual behavior." According to the National Bank's explanation, age and the amount of money alone are not sufficient for the restriction; for example, the regulation does not apply to regular utility payments or transferring money to family members. Radio Tavisupleba+1

Procedure and criticism

In the event of an operation being paused, the bank is obliged to contact the client, provide information about the risks, and obtain "unequivocal consent" for the transaction. The customer has 48 hours to make a decision. If the client refuses the operation during this time or the bank cannot contact them, the transaction will not be executed, although the client has the right to re-initiate the operation. Radio Tavisupleba+2

According to the National Bank, the regulation currently applies only to card operations, and from May 1, 2027, it will also apply to transfers made via internet and mobile banking. The National Bank notes that a similar approach is used in the USA, Canada, Brazil, Great Britain, and EU member states. Radio Tavisupleba+2

Former National Bank President and MP Roman Gotsiridze criticized the regulation and called it "complete absurdity." According to him, it is unclear why age should be the main criterion for protection against fraud and why a person needs additional verification when disposing of their own money. Civil.ge