Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2021-P-14/75-4-(NPA) of 29 December 2021 on Amending the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Bank Payment Cards of the Kyrgyz Republic" of 9 December 2015 No. 76/8

RESOLUTION OF THE BOARD OF THE NATIONAL BANK OF THE KYRGYZ REPUBLIC

of 29 December 2021 No. 2021-P-14/75-4-(NPA)

On Amending the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Bank Payment Cards of the Kyrgyz Republic" of 9 December 2015 No. 76/8

In accordance with Articles 20 and 68 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activities", the Board of the National Bank of the Kyrgyz Republic resolves:

1. To introduce amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Bank Payment Cards in the Kyrgyz Republic" of 9 December 2015 No. 76/8 (attached).

2. The Legal Department shall:

• publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

• after official publication, send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

3. This resolution enters into force upon the expiration of fifteen days from the day of official publication, except for the first paragraph of point 12 of the Annex to this resolution, which enters into force on 1 February 2022, and point 46 of the Annex to this resolution, which enters into force on 4 May 2024.

4. The Payment Systems Department shall bring this resolution to the attention of commercial banks, the Legal Entity "Union of Banks of Kyrgyzstan", JSC "Interbank Processing Center", non-bank financial and credit organizations, operators of international payment systems for settlements using bank payment cards registered with the National Bank of the Kyrgyz Republic.

5. The State Language and Document Management Development Division shall bring this resolution to the attention of the relevant structural subdivisions, regional departments and the representative office of the National Bank of the Kyrgyz Republic in Batken Oblast.

6. Control over the execution of this resolution shall be assigned to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Payment Systems Department.

Chairman	K. Bokontaev

		Annex to the resolution of the Board of the National Bank of the Kyrgyz Republic of 29 December 2021 No. 2021-P-14/75-4-(NPA)

Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Bank Payment Cards in the Kyrgyz Republic" of 9 December 2015 No. 76/8

To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Bank Payment Cards in the Kyrgyz Republic" of 9 December 2015 No. 76/8":

In the Regulation "On Bank Payment Cards in the Kyrgyz Republic", approved by the above-mentioned resolution:

1) Paragraph 5 shall be stated in the following wording:

"5. The following terms and definitions are used in this Regulation:

Automated self-service terminal (payment terminal) - a terminal designed for accepting (cash-in)/dispensing (cash-out) cash from/to bank clients, cardholders, service users, including conducting operations in cash and non-cash forms in favor of service providers.

Authorization request - a request to the card issuer to obtain permission to conduct a transaction from the acquirer according to the established rules of the system.

Authorization - the procedure of confirmation by the issuer of the authority or authorship of the cardholder to conduct an operation using a bank payment card (transaction), as a result of which an obligation of the issuer to the acquirer arises to execute a settlement document drawn up using a card of the above-mentioned issuer. Authorization may be automated (via a terminal) or voice (via telephone communication). If the issuer and acquirer are the same person for an operation performed using a bank payment card, then authorization is the permission granted by the issuer to the client to perform that operation.

Authentication - the procedure of establishing the authenticity of a user's identity by verifying and comparing the characteristics of the presented identifier (PIN code, password, etc.).

Bank payment card (card) - a payment instrument used for settlements when purchasing goods, services, obtaining cash in national and foreign currencies, making money transfers, as well as for settlements in the form of electronic money through terminals, ATMs or other devices (peripheral devices).

Bank kiosk - a special structure/equipment in which a peripheral device is placed.

Bank account - a method of reflecting contractual relations between a bank and a client for accepting a bank deposit and/or for the bank to perform operations related to banking services for the client, including payments and settlements using bank payment cards, provided for by a bank account agreement, bank deposit agreement, legislation of the Kyrgyz Republic and applied in banking practice by business customs.

ATM (Automated teller machine) - a hardware-software complex designed for dispensing and/or accepting cash, obtaining information on completed transactions and performing other operations using a card or other remote service instruments.

Contactless payment - a transaction carried out by reading information from a card or other remote service instrument by a peripheral device at a close distance using wireless data transmission technology (NFC (Near field communication) or others).

Virtual card - a special card issued in electronic form without a physical medium.

Virtual POS terminal - a web interface replacing a physical POS terminal and interacting with the bank's system to perform operations for payment for goods and services using bank payment cards and other remote service instruments. A virtual POS terminal may also be used to top up bank accounts, taking into account the bank's risk assessment criteria according to internal regulatory documents, as well as compliance with the requirements of the legislation of the Kyrgyz Republic.

Bank account owner - an individual/legal entity/individual entrepreneur who has concluded an agreement to open a bank account in accordance with the legislation of the Kyrgyz Republic.

Debit card - a card intended for performing operations using own funds held in a bank account and/or credit provided by the issuing bank to the client when there are insufficient or no funds in the bank account (overdraft). The overdraft service is provided only on debit cards.

Cardholder - a bank client, an individual, including one authorized by a legal entity/individual entrepreneur-account owner, who has the right to perform operations using a card on the basis of an agreement concluded with the issuer.

Unified Interbank Processing Center (UIPC) - a hardware-software complex of the national payment system of the Kyrgyz Republic "ELCART", designed for processing/clearing transactions made using "ELCART" cards, as well as cards of other systems, including those integrated with the UIPC system.

Indent printing - one of the methods of card personalization, in which various symbols are printed on the card without relief, i.e. the symbols do not protrude on the card surface.

Card receipt (receipt) - a document on paper and/or in electronic form generated by a peripheral device when conducting a transaction using a card or remote service instruments, which is the basis for settlements on the transaction and serves as confirmation of its completion. To reduce the risk of fraud, the receipt must not contain all information about the card number.

Co-badged card - a card issued within two payment systems.

Co-branded card - a card issued by a bank jointly with any organization(s).

Credit card - a card intended for performing operations, settlements for which are carried out using funds provided by the bank to the cardholder within the established limit in accordance with the terms of the credit agreement.

NBFCO credit card - a pre-issued credit card issued by a bank for non-bank financial and credit organizations (hereinafter - NBFCO) that have a license/certificate of the National Bank for the right to conduct banking operations for the issuance/repayment of their own issued loans in accordance with the terms of a credit agreement/financing agreement with the issuer for their subsequent distribution.

Local payment system - a settlement system using cards issued by one (single-issuer) or several (multi-issuer) issuers in the territory of the Kyrgyz Republic. Cards of local systems may be serviced in peripheral devices according to the terms of the agreement between participants and systems.

International payment system for settlements using bank payment cards (international payment system) - a settlement system using international cards issued and serviced in accordance with the requirements of the operators of these systems and the legislation of the Kyrgyz Republic. The system establishes certain rules for mutual settlements in foreign currency for payments using cards between system participants.

Multi-factor authentication - extended authentication, an access control method in which a user must present more than one identifier to gain access to information.

Mobile POS terminal (mPOS) - a device and/or software for smartphones/tablet computers and other devices that allows conducting transactions.

National card - a card of the "ELCART" payment system issued by any issuer-resident of the Kyrgyz Republic that has concluded a corresponding agreement with the operator of the national payment system.

National payment system for settlements by bank payment cards - a settlement system for operations using national cards of the "ELCART" system, functioning on the basis of the hardware-software complex of the Unified Interbank Processing Center.

Unallocated metal accounts - accounts opened by a bank for accounting for precious metals without indicating individual characteristics and performing operations for attracting and placing precious metals.

Overdraft - a form of short-term credit, the provision of which enables the client to make payments in excess of the amount available in the client's account, within the amounts and on the terms determined by the agreement between the bank and the client.

Operator of the national payment system - Closed Joint Stock Company "Interbank Processing Center" (CJSC "IPC").

Operator of the settlement system using bank payment cards - a legal entity that has a license and/or permission of the National Bank to carry out activities for receiving, processing and issuing financial information (processing, clearing) for payments and settlements of third parties to participants of the payment system, of this processing, clearing center, ensuring the functioning of the settlement system by bank payment cards and has concluded an agreement with the participants on participation in the system, according to which the operator and participants of the system undertake to carry out their activities within the payment system in accordance with the legislation of the Kyrgyz Republic.

Peripheral devices - terminals, ATMs, payment terminals and other devices constituting the technical infrastructure for accepting and servicing bank payment cards and other remote service instruments.

Personalization - the procedure of applying to the card and/or recording into the memory of the microprocessor and/or on the magnetic stripe of the card identification information provided for by the regulations and operating procedures of the relevant payment system for settlements using bank payment cards.

Payment system for settlements using bank payment cards (card settlement system) - a set of norms, standards, rules, institutions and software and hardware for organizing settlements using cards. Payment systems are divided into local, national and international.

NBFCO credit card user - a client (individual/legal entity) to whom the NBFCO issues funds (credit/financing) to NBFCO credit cards and accepts repayments, according to the concluded agreement and in accordance with the normative legal acts of the National Bank.

Service provider - a legal entity or individual entrepreneur receiving client funds for goods sold, works performed, services rendered.

Pre-issued card - an instant issue card at a bank/NBFCO branch (NBFCO credit cards) without indicating the surname and name of the cardholder on the card surface and with a term of not more than 3 (three) years, providing access to an account that is opened for a specific client, and intended for receiving money transfers, obtaining cash through peripheral devices, paying for purchases at retail outlets by non-cash method, conducting operations via the Internet in accordance with the requirements of this Regulation and legislation on AML/CFT.

Prepaid card - a payment instrument allowing the use of electronic money for operations to purchase goods/services and exchange for cash through software and hardware devices. The card certifies the cardholder's right of claim against the issuer of electronic money for its obligations.

Processing - a licensed activity including interrelated processes for receiving, processing and issuing financial information to payment system participants.

Processing center - a legal entity carrying out processing.

Settlement agent - an organization ensuring final settlements between participants of the card settlement system.

Stop-list - a list of blocked cards for which all types of operations are suspended or temporarily suspended.

Terminal - a hardware-software complex allowing transactions by reading data from cards and other remote service instruments. Terminals are divided into the following types: POS terminal; POS terminal-CAD; virtual POS terminal, mobile POS terminal and terminal-CAD.

Terminal-CAD - a terminal for dispensing cash from cards and other remote service instruments, as well as topping up a bank account using a card and other remote service instruments at branches of the bank and its agents, taking into account the bank's risk assessment criteria according to internal regulatory documents, as well as compliance with the requirements of the legislation of the Kyrgyz Republic. The commission for cashing out through a terminal-CAD for subsequent payment must not be shifted to the cardholder.

Trade and service enterprise (TSE) - a legal entity or individual entrepreneur that, in accordance with an agreement concluded with the acquirer, accepts cards for payment for its goods/services, dispensing cash with the drawing up of documents confirming the performance of operations with cards. Funds on the card may be dispensed only if there is an agency agreement with commercial banks and in accordance with the limits established by the normative legal acts of the National Bank, subject to compliance with the requirements of the legislation of the Kyrgyz Republic on AML/CFT regarding the agent's implementation of appropriate measures for simplified identification and verification of the cardholder using a risk-based approach.

Transaction - an operation using a card and other remote service instruments (for example, purchase of goods, services, money transfer, currency exchange or receipt of cash), as a result of which the balance of funds in the cardholder's account changes.

Participants of the card settlement system - issuer, cardholder, acquirer, TSE, processing center and settlement agent.

Chargeback - a return or claim payment, refusal of the issuer to make a payment on a transaction conducted in violation of the payment system rules (disputed transaction). Chargeback is carried out within the period established by the regulations by debiting the acquirer's account for the amount of the disputed transaction with the drawing up of documents required by the rules of the relevant payment system.

Acquirer - a bank that has received permission to carry out acquiring, the owner of a network of peripheral devices, ensuring the possibility of authorization or transactions through its peripheral devices in accordance with the technology and normative acts of the relevant payment systems and the legislation of the Kyrgyz Republic.

Acquiring - the bank's activity related to settlements using bank payment cards, ensuring the possibility of authorization and transaction through peripheral devices, as well as concluding contractual relations with TSE in accordance with the technologies and normative acts of the relevant payment systems and the legislation of the Kyrgyz Republic.

Embossing - applying data to the card in the form of relief signs.

Card issuance - the bank's activity for issuing cards for subsequent distribution.

Issuer - a bank issuing cards in accordance with the technology and rules of the relevant payment systems and the legislation of the Kyrgyz Republic.

CVV2 code (Card verification value) - a three-digit code for verifying the authenticity of the card, requested when paying via the Internet and other operations.

PIN code (Personal identification number) - a personal identification number allowing authentication of the user to perform an operation.

POS terminal (Point of sale) - a terminal for accepting payment for goods and services at a TSE using a card and other remote service instruments.

POS terminal-CAD - a terminal performing two functions: POS terminal and CAD terminal.";

2) Paragraph 7 shall be stated in the following wording:

"7. Depending on the regulations and operating procedures of the payment system, as well as on the type of settlement scheme, the card may be debit, credit, pre-issued, prepaid, co-badged and/or co-branded. The card may also be issued by the issuer in electronic form (virtual card). Commercial banks must have internal procedures for operations with virtual cards, including security rules for their conduct and settlements.

The card allows its holder to conduct operations for payment for goods and services, including purchases on the Internet, obtaining cash through peripheral devices or other devices, and is also a means of access to a bank account for the holder to manage funds in the bank account, including for accounting and performing operations with precious metals placed in an unallocated metal account opened with the issuer, in accordance with the legislation of the Kyrgyz Republic and the agreement between the cardholder and the issuer.";

3) Paragraph 8 shall be supplemented with the following sentence:

"The conversion conditions must be established in the agreement with the cardholder.";

4) Paragraph 13 shall be stated in the following wording:

"13. The card must contain mandatory requisites on the card surface: name of the issuer, card number, surname and name of the cardholder, name of the company (for cards linked to accounts of legal entities/individual entrepreneurs, if applicable), card validity period, affiliation with a payment system and other requisites provided for by the requirements of the relevant payment system. The requirements of this paragraph do not apply to closed single-issuer intra-bank systems, as well as to virtual cards.

The absence of the surname and name of the cardholder is allowed if the card is pre-issued with unambiguous identification of the card owner at the issuing bank/NBFCO.

Transactions via a pre-issued card through peripheral devices and mobile applications of payment system participants are carried out using a PIN code, passwords or other authentication methods.";

5) Paragraph 15 shall be stated in the following wording:

"15. The cardholder, in accordance with the agreement concluded with the issuer, has the right, using the card, to:

• pay for purchased goods and services at TSE, make Internet purchases;

• obtain cash through ATMs/terminals-CAD and from bank agents;

• make money transfers from their bank account to the recipient's account (card to card, electronic wallet) in accordance with the legislation of the Kyrgyz Republic;

• make money transfers through money transfer systems in accordance with the legislation of the Kyrgyz Republic;

• make payments through remote/distance service systems;

• top up the card through bank cash desks, agents providing an extended range of banking retail services, payment terminals, ATMs, money transfer systems and electronic wallets.";

6) Paragraph 15-1 shall be declared void;

7) The first sentence of paragraph 16 shall be stated in the following wording:

"The TSE accepts cards for payment for its goods and services and exchanges information with the acquirer through peripheral devices installed at the given TSE, with mandatory electronic authorization.";

8) Paragraph 17 shall be stated in the following wording:

"17. A payment by card made through peripheral devices has the status of an electronic payment document and is confirmed by the issuance of a receipt, which must contain the following mandatory requisites:

• document number, date and time of the operation;

• name (code) of the outlet/ATM and acquirer;

• payment amount;

• payment currency;

• code confirming authorization of the operation;

• amount of commission or discount (in accordance with the system's tariffs);

• payment card requisites in accordance with the payment system's security rules;

• signature of the cardholder (for operations via terminal-CAD or POS terminal in accordance with the requirements of the legislation of the Kyrgyz Republic and the payment system rules). If the operation is conducted with PIN code entry, the receipt must contain the relevant information and the cardholder's signature may not be requested.

The check may contain additional details if this is provided for by the regulations and operating procedures of the relevant payment systems.

This requirement does not apply to contactless payments and e-commerce transactions.";

9) restate paragraph 18 as follows:

"18. The acquirer must ensure that peripheral devices are equipped with protection means to prevent fraud attempts and preserve card data. If the acquirer fails to ensure the preservation of card data (servicing cards with a microprocessor, multi-factor authentication, peripheral device protection means, etc.), then it is obliged, unless otherwise provided by the payment system rules, to reimburse the card issuer for losses incurred as a result of compromise of card data in the acquirer's device. In this case, the issuer must provide confirmation of the fact of compromise in the acquirer's device.

The acquirer is released from liability for losses arising on the card from the moment of notification of the issuer, as well as in cases where the issuer does not support additional card protection means and no signs of unauthorized actions are detected in the acquirer's actions.

Liability for compromised cards to the cardholder rests with the issuer.";

10) restate the first sentence of paragraph 19 as follows:

"In case a payment is recognized as erroneous or unauthorized after final settlement, the payment system must provide for a separate procedure for the mandatory return of funds to the cardholder's bank account and subsequent settlement of the dispute on such payments, as well as a separate procedure for the return of funds to users of credit cards of NFOs who do not have a bank account, including for payments made through mobile applications or other remote service tools.";

11) in the second sentence of the first paragraph of paragraph 22, delete the word "bank";

12) in paragraph 24:

delete the words "over 50%";

replace the word "cards" with the words "payment system";

replace the word "Elkart" with the word "ELKART";

13) restate the first paragraph of paragraph 25 as follows:

"A bank may issue cards having various settlement schemes (programs): debit, debit-credit, credit, pre-issued, prepaid, co-badged and/or co-branded, as well as virtual.";

14) restate paragraph 29 as follows:

"29. The issuer issues and provides the cardholder with a card for use (distribution) on the basis of the corresponding application of the account holder and the bank account agreement concluded with the account holder. A bank payment card is the property of the issuer, is transferred to the cardholder for use in accordance with the terms of the agreement and is blocked/seized by the issuer upon expiration of the card or closure of the client's bank account.

When issuing a card, the bank performs identification and verification of the client in accordance with the legislation of the Kyrgyz Republic.

The transfer of the PIN code, virtual card (card details, PIN code and other information) to the cardholder is established by the issuer's internal regulatory documents and payment system rules while observing security measures.

Credit cards issued by a bank for NFOs are the property of the issuer, which must be established in the agreement between the bank and the NFO. The process of transferring cards to clients for their subsequent use and withdrawal upon expiration of the card or in case of termination of servicing is carried out by the NFO.";

15) restate paragraph 30 as follows:

"30. Re-issuance of bank payment cards, except for pre-issued cards, is carried out by the issuer on the basis of the application of the bank account holder, as well as on the initiative of the Bank, if the bank assumes all responsibility in case of unauthorized operations on this card or claims of the cardholder. The application of the bank account holder for re-issuance of the card may be submitted to the bank in the form of a scanned copy with the holder's signature by fax, email or in the form of an electronic application through the remote banking service system in accordance with the regulatory legal acts of the National Bank, as well as the bank's internal rules or procedures and the agreement with the client.";

16) restate the first sentence of paragraph 31 as follows:

"When concluding an agreement and opening a bank account, the issuer is obliged to identify the cardholder in accordance with the requirements for the "know your client" policy established by Appendix 1 to the Instruction on working with bank accounts, bank deposit accounts, approved by resolution of the Board of the National Bank of the Kyrgyz Republic of October 31, 2012 No. 41/12 and the legislation of the Kyrgyz Republic, except for users of credit cards of NFOs, whose identification is carried out by the NFO, in accordance with the legislation on PFTD/LPD.";

17) restate paragraph 31-1 as follows:

"31-1. When issuing cards for NFOs, the issuer must conclude an agreement with the NFO on proper verification of the NFO's client and trust in third parties in accordance with the Regulation "On the procedure for conducting proper verification of the client", approved by resolution of the Government of the Kyrgyz Republic of December 25, 2018 No. 606, and the Regulation "On minimum requirements for the organization of internal control in microfinance organizations, credit unions and specialized financial institutions of the Kyrgyz Republic for the purposes of combating terrorist financing and legalization (laundering) of criminal proceeds", approved by resolution of the Board of the National Bank of the Kyrgyz Republic of August 21, 2019 No. 2019-P-33/43-6-(NFKU).";

18) restate paragraph 32 as follows:

"32. The issuer and the NFO are obliged, before signing the application for card issuance and concluding the agreement, to familiarize the cardholder/user of NFO credit cards:

• with the terms of the agreement;

• with the rules for safe use of the card;

• with the tariffs for services provided;

• with the methods of obtaining information about each transaction performed, blocking of cards in order to prevent unauthorized access to the client's account;

• with contact information for communication with the bank and NFO outside working hours and on weekends (holidays);

• with the terms of crediting funds to NFO credit cards and the moment of interest accrual (from the day funds are received/from the day funds are withdrawn from the card/from the day of transfer of funds directed to the purchase of goods or services, etc.);

• with the procedure for repaying the loan in case the loan repayment will be carried out on weekends and holidays in non-cash form;

• with the procedure for issuing funds from the bank's/NFO's cash desk in case of loss of the card.

The bank's/NFO's client confirms receipt of the specified information in writing or using remote banking services. The rules for safe use of the card must be included in the agreement or attached to it.";

19) restate paragraph 33 as follows:

"33. When issuing a card, the following mandatory conditions for the provision of card services are reflected in the bank account agreement:

1) personal data of the account holder (last name, first name, patronymic, passport data (or other identity documents in accordance with the legislation of the Kyrgyz Republic) and other data of the account holder for identification of the client and beneficial owner (beneficiary) in accordance with the legislation of the Kyrgyz Republic);

2) personal data of the cardholder (last name, first name, patronymic, passport data (or data of another identity document in accordance with the legislation of the Kyrgyz Republic) and other data of the cardholder for identification of the client and beneficial owner (beneficiary) in accordance with the legislation of the Kyrgyz Republic);

3) rights, obligations and liability of the cardholder and the issuer for card transactions;

4) types and amounts of commissions payable by the cardholder, as well as the procedure for informing clients about changes in tariffs, card validity period or other terms of card use, new products and other information;

5) on the terms and methods of providing statements by the issuer on the movement of funds and the balance on the bank account;

6) basic requirements for compliance with security by the cardholder (use of PIN code, limits, actions of the holder in case of loss or theft of the card);

7) procedure for informing the issuer about the fact of loss, theft or use of the card by an unauthorized person;

8) distribution of liability between the parties in case of loss, theft or use of the card by an unauthorized person, including unauthorized operations;

9) conditions for blocking and seizure of the card by the issuer;

10) distribution of risks and liability between the parties in case of violation of security procedures or other terms of the agreement;

11) procedure for considering disputes/complaints;

12) procedure for terminating the agreement and canceling the card.

The issuer has the right to allow payments by the cardholder without using a PIN code and contactless payments within the limits established in internal rules and procedures for cardholders, taking into account the criteria for assessing the degree (level) of risks per client, according to the issuer's internal control program and payment system rules. In this case, liability for these transactions rests with the issuer.

The issuer must inform cardholders about the presence of high-risk operations for which, according to the system rules, refund is impossible and/or claim work is not provided. The possibility of conducting such operations must be blocked by default and provided only upon request and consent of the cardholder. For the purposes of segmentation of card products and promotion, issuance of virtual cards with default connection of high-risk operations is allowed upon notification and obtaining consent of the cardholder. Such cards cannot be used within regular payments (salary projects, pensions, benefits, deposit payments, etc.).

The agreement may provide for additional conditions.";

20) in paragraph 33-1:

in subparagraph 4) replace the word "PIN" with the word "PIN";

in subparagraph 6) replace the word "fraudulent" with the word "unauthorized";

21) restate the third sentence of paragraph 34 as follows:

"The issuer is obliged to identify holders of additional cards in accordance with the requirements for the "know your client" policy established by Appendix 1 to the Instruction on working with bank accounts, bank deposit accounts and applied when opening a bank account.";

22) restate paragraph 35-1 as follows:

"35-1. When issuing a credit card of an NFO, funds (credit) are issued by debiting funds by the servicing bank from the NFO's settlement (loan) account opened with this bank, in accordance with the terms of the agreement on the issuance and distribution of NFO credit cards.

Confirmation of the receipt of credit to NFO credit cards without using crediting of funds to the bank account of the user of the NFO credit card is the opening by the NFO of a credit limit for the amount of the approved loan.

The procedure/terms for crediting the loan, opening the credit limit and repayment are carried out in accordance with the credit agreement between the NFO and its client.

Transactions via NFO credit card through peripheral devices and mobile applications of payment system participants are carried out using a PIN code, passwords or other authentication methods.

The user of NFO credit cards has the right to make payments and settlements according to the intended purpose of the received loan/financing.";

23) restate the first sentence of paragraph 37 as follows:

"The issuer keeps accounting records of card transactions by crediting or debiting funds on the bank account on the basis of transactions performed by the cardholder in accordance with the legislation of the Kyrgyz Republic, international financial reporting standards (IFRS) and internal rules/procedures for accounting.";

24) in the second sentence of paragraph 39, delete the words "(at least once a month)";

25) in the first paragraph of paragraph 40, replace the word "may" with the word "has the right";

26) restate paragraph 41 as follows:

"41. The issuer/NFO (in the case of NFO credit cards) must enter the card details into the system's stop-list upon receipt from the cardholder of a notification and application about loss, theft or unauthorized use of the card. In case of receipt of a notification from the cardholder about the seizure of the card by an ATM, the issuer/processing center temporarily blocks the card until the cardholder/user of the NFO credit card submits an application to enter the card details into the stop-list or return the card, in accordance with the terms of the agreement and payment system rules.";

27) in the third sentence of paragraph 42, replace the words "lost or stolen bank card" with the words "lost or stolen card";

28) in paragraph 43:

in the first paragraph, delete the word "bank";

in the second paragraph, replace the word "PIN" with the word "PIN";

29) recognize paragraph 48 as having lost force;

30) restate paragraph 51 as follows:

"51. The acquirer, in order to minimize the risks of unauthorized operations using cards, must establish on peripheral devices a limit on the volume of cash withdrawal operations, taking into account the criteria for assessing the degree (level) of risks per client, as well as according to the issuer's internal control program and payment system rules that do not contradict the legislation of the Kyrgyz Republic. The amount of one operation carried out by the cardholder through an ATM must not exceed 400 (four hundred) calculation indicators in national currency or its equivalent in foreign currency.";

31) in the eighth paragraph of paragraph 53, replace the word "PIN" with the word "PIN";

32) in the first paragraph of paragraph 54, replace the word "card-check" with the word "check";

33) supplement with paragraph 63-3 as follows:

"63-3. If an international payment system for the provision of services on the use of bank payment cards in the territory of the Kyrgyz Republic is registered in an offshore zone, it cannot be registered with the National Bank.";

34) in paragraph 66, after the word "Documents", add the words "and their copies";

35) supplement with paragraph 67-2 as follows:

"67-2. Upon cancellation of registration of an international payment system, re-submission of documents for registration is possible no earlier than after 1 (one) year.";

36) restate the title of Chapter 10 as follows:

"Chapter 10. General requirements for processing and the processing center, procedure for final settlement";

37) supplement with paragraph 68-1 as follows:

"68-1. Processing activity includes storage of financial information and distribution to participants of the settlement system using cards of information on transactions made using cards, as well as performance of other functions provided for by the relevant agreements between participants of the settlement system using cards.";

38) in paragraph 69, replace the words "additional license" with the words "license/permission of the National Bank";

39) restate paragraph 71 as follows:

"71. The functions of the processing center may be performed by a payment system operator that is a participant of the system and has the corresponding license of the National Bank, acting in accordance with the established regulations and operating procedures, agreements between system participants in accordance with the legislation of the Kyrgyz Republic.";

40) restate the second sentence of paragraph 72 as follows:

"Final settlement for payments using national cards of system participants is carried out by the National Bank in the interbank Gross settlement system in real time in accordance with the regulations and operating procedures of the system.";

41) supplement with paragraph 72-1 as follows:

"72-1. The National Bank is the settlement agent for final settlements between participants of the settlement system using national cards.";

42) restate paragraph 73 as follows:

"73. Processing of transactions made using international cards is carried out by operators of international payment systems in accordance with the regulations, operating procedures and agreements of these systems, except for domestic payments.";

43) in paragraph 75, replace the words "relevant documents (card-checks)" with the words "relevant documents (checks)";

44) restate paragraph 80 as follows:

"80. Processing centers may provide other types of services to issuers and acquirers (card personalization for clients, maintenance of a database of clients and merchants and other services) in accordance with contractual relations and requirements of the legislation of the Kyrgyz Republic.";

45) in paragraph 83, replace the word "cards" with the words "using cards";

46) supplement with Chapter 10-1 as follows:

"Chapter 10-1. Requirements for processing and the procedure for conducting domestic payments and final settlements

83-1. Domestic payments include payments made in national currency on the territory of the Kyrgyz Republic using cards of various payment systems issued on the territory of the Kyrgyz Republic. In this case, the issuer, acquirer, merchant are residents of the Kyrgyz Republic and payments are made in national currency, regardless of the currency of the cardholder's bank account.

83-2. Collection, processing, storage of financial information on payments (transaction processing) made in national currency using bank payment cards issued on the territory of the Kyrgyz Republic is carried out by a processing center having the corresponding license/permission of the National Bank.

83-3. Authorization requests/responses of issuers, acquirers, operators of the settlement system using cards for domestic payments must pass through the operator of the national payment system and may be transmitted to the relevant settlement systems using bank payment cards.

83-4. Clearing for domestic payments is carried out by the operator of the national payment system, and calculation of net positions is carried out in the interbank Gross settlement system in real time in accordance with the regulations and operating procedures of the system. Final settlement for domestic payments is carried out by the National Bank.

83-5. The procedure for conducting domestic payments, interaction of participants and settlement systems using bank payment cards, the operator of the national payment system, the National Bank, rights and liability of the parties are established in the relevant agreement(s).";

47) restate paragraph 93 as follows:

"93. The issuer must provide to the National Bank information on the types and kinds of cards issued and serviced by it, including the balance of funds on accounts for them, no later than the 10th day of the month following the reporting quarter, in the manner and form according to Appendix 7 to this Regulation, as well as other reports in accordance with the legislation of the Kyrgyz Republic.";

48) restate paragraph 94 as follows:

"94. The acquirer must provide to the National Bank information on peripheral devices no later than the 10th day of the month following the reporting month, in the manner and form according to Appendix 3 to this Regulation; inform about the presence of functions for persons with limited capabilities in peripheral devices no later than the 10th day of the month following the reporting quarter, in the manner and form according to Appendix 6 to this Regulation, as well as other reports in accordance with the legislation of the Kyrgyz Republic.";

49) in paragraph 95, replace the word "cards" with the words "using cards";

50) in the second sentence of paragraph 97, replace the word "may" with the words "has the right";

51) throughout the text of Appendix 2, replace the words "acquiring on bank payment cards" with the words "acquiring of bank payment cards";

52) supplement the Regulation with appendices 6 and 7 as follows:

		"Appendix 6 to the Regulation "On Bank Payment Cards in the Kyrgyz Republic"

REPORT on the number of peripheral devices with functions for persons with disabilities

No.	Name of region	Number of installed peripheral devices with functions for persons with disabilities
Total installed ATMs	Of all installed ATMs:							Total installed POS terminals	of all installed POS terminals:		Total installed payment terminals	of all installed payment terminals
presence of Braille (convexity on digit 5)	audio output (operation accompaniment)	of which there is a working audio output (operation accompaniment)	no audio output	there are obstacles (stairs, ascent/descent) and there is a ramp	there are obstacles (stairs, ascent/descent), but no ramp	no obstacles (stairs, ascent/descent), no need for a ramp	presence of Braille (convexity on digit 5)	contactless payment function	audio output (operation accompaniment)	of which there is a working audio output (operation accompaniment)	no audio output	there are obstacles (stairs, ascent/descent) and there is a ramp	there are obstacles (stairs, ascent/descent), but no ramp	no obstacles (stairs, ascent/descent), no need for a ramp
1	Bishkek city
2	Chuy
3	Issyk-Kul
4	Naryn
5	Talas
6	Jalal-Abad
7	Osh
8	Batken
	Total:

A cover letter with an attachment must be attached to the report.

		Appendix 7 to the Regulation "On Bank Payment Cards in the Kyrgyz Republic"

REPORT on the number of cards in circulation and the balance of funds on accounts for them

Name of the payment system	Number of cardholders	Card type				Card status			Balance of funds in card accounts at the end of the reporting period
magnetic	chip	chip NFC	virtual	active	inactive	blocked	som	US dollar	euro	ruble	tenge	n…
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
The name of the payment system is indicated	The number of cardholders serviced within the payment system is indicated	The number of magnetic cards in circulation is indicated	The number of chip cards in circulation is indicated	The number of contactless cards in circulation is indicated	The number of virtual cards in circulation is indicated	The number of active (within 1 year) cards at the end of the reporting period is indicated	The number of inactive (more than 1 year) cards at the end of the reporting period is indicated	The number of blocked cards at the end of the reporting period is indicated	Indicated in numerical format in nominal currency in thousands of units

A cover letter with an attachment must be attached to the report.