OREANDA-NEWS. May 13, 2010. Latvijas Krajbanka has launched a new service offering Latvian municipalities a possibility to simplify considerably the single allowance payment system for private individuals by issuing Social Cards. Inhabitants of Skrunda County municipality have received the first Social Cards, reported the press-centre of Latvijas Krajbanka.

The Social Card is the first card in Latvia developed specially for the needs of municipal social services. It is as simple and easy to use as the bank’s payment card, yet at the same time it allows to control and check the conformity of spending the social allowance to its intended purposes, for instance, for acquisition of primary commodities. The cardholder may use the card as frequently as necessary until the entire amount of money (allowance) is spent. The card balance can be checked in the ATM, however, the card may not be used for cash withdrawal. The card is valid for 6 months from the moment of its issue.

The municipalities, in their turn, may define the territory and points of sale where the card is valid which helps to eliminate considerably and even prevent the possibility of spending an allowance granted by the municipality for purchasing alcohol, cigarettes and suchlike goods.

With regard to the use of funds available on the card, the municipal social service receives regular reports on the points of sale and amounts spent by the cardholder. This makes the card an efficient tool of control and cash flow adjustment for social service employees.

Ludmila Berzina, Head of Payment Cards Department of Latvijas Krajbanka, explains:
“The point of the card is to make the work of the municipal social services employees easier and replace cash which is pretty often used for purposes other than those envisaged when granting an allowance. The municipality may also agree on a special discount policy, for instance in the local food shop, when purchases are paid by the Social Card, thus contributing to the shared social co-responsibility for the deprived. Such option has been also used in Skrunda. From the cardholder’s point of view, the advantage of such solution is a possibility to receive a single allowance without becoming a bank’s client and opening a current account which might be necessary to be closed soon. Whereas those receiving the State Social Insurance Agency allowances on a regular basis, can apply for the Support Kit which includes everything that is necessary for a continuous management of funds – a current account, a card, Online Banking with a code card and either Telephone Banking or Mobile Banking.”