OREANDA-NEWS. October 14, 2011. The Central Bank held a traditional ordinary meeting with the participation of the representatives from the State Social Protection Fund (SSPF), the International Bank of Azerbaijan (IBA) and the Capital Bank on improving the bank services on delivery of pensions and allowances to the population and discussing the existing problems, reported the press-centre of CBA.

The first deputy governor of the Central Bank Alim Guliyev opened the event and noted that the Central Bank attaches great importance to the reforms in the pension system and assignments of the President to increase pensions and social allowances. Conducted reforms, increase in pensions escalated the demand for employed card infrastructure to distribute the pensions, triggered a special need of assigned banks for cash, especially banknotes of low-denomination to feed ATMs.

Further it was informed that currently pensions and social allowances are distributed via two assigned banks selected by the SSPF. Pensions and social allowances in Baku and Sumgait are in lump distributed via the IBA, whereas both the IBA and Capital Bank are responsible for distribution in the regions. As of 01 September, 2011, the IBA serves the population via 622 (354 in Baku, 268 in the regions) and the Capital Bank via 416 ATMs (108 in Baku, 308 in the regions).

According to the representatives of both banks, treasure junctions are created in different regions with the Central Bank support to eliminate shortcomings in the distribution of pensions and social allowances as well as to more promptly provide ATMs with cash. At the same time, to provide sustainable communication in the ATMs, stationery communication channels are being gradually replaced with the GSM communication channels which in turn allows installation of new ATMs (especially in rural areas).

During the discussions, it was suggested to use modern technologies – “SMS notification” service in distribution of pensions and social allowances. Thus, observations suggest that long queues on the eve of delivery of pensions and allowances are due to the fact that pensioners want to check their account in the ATMs. It was noted that if this service is applied, pensioners will be informed on transfer of the funds to their accounts.

According to the executive director of the Central Bank Agshin Valiyev, the Central Bank bases its activities on the “clean money in circulation” policy and has sufficient cash reserves to provide both the economy and the pensioners.

At the end of the meeting, in order to improve the quality of the distribution of pensions and social allowances to the population, the Central Bank charged the assigned banks to provide appropriate evaluation of the service to allow pensioners to use ATM networks of both banks without extra charges, as well as to take necessary steps to provide ATMs involved in the distribution of pensions and allowances with cash, including banknotes with one manat denomination.

To eliminate the queues in front of ATMs during distribution of pensions and social allowances, the SSPF was recommended to widely apply “SMS notification” system among pensioners and create agreed moving financing system of pension distribution in different residential districts within the regions and cities. At the same time it was noted that the number of assigned institutions involved in the process should be increased and the pensioners allowed to make a selection among these institutions to improve the quality of banking services for pensioners, and trigger the atmosphere of sound competition in the field.