The protection of consumer rights in the financial sector is a distinct area among the National Bank's tasks. The Organic Law on the National Bank regulates how the Bank shapes consumer protection rules for financial sector representatives, loan-giving entities and virtual asset service providers, where complaints related to payment services are examined, what requirements apply to currency exchange points, and how the Bank's loan and deposit operations are carried out. This page explains these matters in detail.
The general framework of consumer protection
By a legal act the National Bank may set for a financial sector representative and a loan-giving entity various consumer protection rules: rules for the protection of consumers' rights when a loan or bank credit is issued or funds are attracted — including the consumer's right to withdraw from the contract and the provision of information essential for the consumer; as well as other rules that may differ from the general rules established by civil legislation — for example, regarding an early repayment commission. For a virtual asset service provider, too, the Bank sets a consumer protection rule, including the provision of essential information to the consumer.
Within the powers provided by this law, the National Bank ensures compliance with the requirements of the Law on Consumer Protection. To this end it issues legal acts, conducts measures, gives written instructions, imposes additional requirements and restrictions, and applies supervisory measures and sanctions. The likelihood that a consumer's right is actually protected depends precisely on these instruments.
The dispute resolution commission for the payments sphere
Disputes between a payment service consumer and a payment service provider, connected with rights and obligations established by legislation, are examined by an independent dispute resolution commission at the National Bank. Examination of a dispute begins with the submission of a complaint by the consumer against the provider. The commission examines the complaint free of charge and is guided by the principles of adversarial process, fairness, transparency, objectivity, impartiality and equality of the parties. It may approach the structural units of the National Bank for consultation or information; on its own initiative it may request additional information or evidence from the parties — including confidential information — and may request such information from any natural person or private-law legal entity. Where requested information is not submitted, the commission may fine the infringer, except where that party is the consumer, that is, the complainant. The rules on the commission's establishment and operation, its organizational structure and its relations with the parties are regulated by the Law on the Payment System and Payment Services, the National Bank's legal acts and other normative acts. In practical terms this means the consumer has a free and impartial forum for settling a dispute with a provider even before going to court.
Requirements for currency exchange points
When providing its service, a currency exchange point must give the consumer complete information about the exchange rate and, where a service fee exists, its amount. The cancellation of an exchange transaction and the return of the exchanged currency are possible under the established procedure. The rules for providing information and for cancelling a transaction are determined by the National Bank — so if you have a question about an exchange transaction, the answer should first be sought in these rules and in a comparison with the applicable exchange rate.
Confidentiality of information at an exchange point
A currency exchange point must protect the confidentiality of information. Consumer information — data on transactions and operations — may be given only to the parties to the relevant transaction and their authorized representatives, the National Bank, the dispute resolution commission at the National Bank, the Financial Monitoring Service of Georgia in cases defined by legislation, and the State Audit Service during an inspection under the law on personal data protection. Other persons may receive any information about the consumer only under an appropriate court decision or the consumer's prior written consent. Courts, investigative bodies and tax services are prohibited, before an appropriate court decision, from transferring the information to another body, including the mass media, or from using it publicly.
The National Bank's loan and deposit operations
The National Bank may issue credits to a commercial bank, a microbank and a non-bank deposit institution that hold accounts with it, under its own rules and conditions, with appropriate collateral. The list of assets usable as collateral is approved by the National Bank's Council. The Bank also accepts deposits under its own rules. A special case is a loan to the Deposit Insurance Agency: granted on the basis of a decision of the Bank's Council and under its conditions, this loan may be issued only at a time of acute liquidity shortage, with appropriate collateral; it must be as short-term as possible, its term must not exceed six months, and its interest rate must be close to the market rate and not lower than the National Bank's one-day standing facility rate.
Minimum reserve requirements
The National Bank may set minimum reserve requirements for a commercial bank, a microbank and a non-bank deposit institution, defined as a percentage ratio of attracted funds; keeping these reserves at the National Bank may be made mandatory by the Bank's decision. This instrument is part of monetary policy, yet it also matters from the consumer's perspective: it determines how liquid the bank holding your funds must be.