Russian banks cancel credit card limits
Leading Russian banks have begun to actively cancel existing credit card limits.
The Moscow Times reported this, citing numerous complaints from citizens published by Izvestia. Most often, clients complain about the actions of VTB, Pochta Bank, and Renaissance Bank.
A VTB client with premium status told the publication that they had two credit cards with limits of 150,000 and 250,000 rubles. While on vacation, the bank abruptly canceled both limits. Bank employees explained that the decision was made automatically “to reduce the credit burden” and was out of their control. A limit review is only possible after 90 days.
Clients of Pochta Bank were notified by SMS that their limits had been canceled. They were also offered a VTB card to transfer their debt, as the two banks are set to merge in 2026. At Renaissance Bank, limits were canceled even for clients with no payment delays who had always respected the grace period. Bank representatives only responded that the institution has the right to unilaterally reduce the limit. VTB clarified that adjusting credit limits on cards is a common practice for high-risk clients with large debts or arrears.
The reduction of limits began in November 2024, when the Central Bank restricted lending to heavily indebted individuals, as noted by Evgenia Lazareva, head of the People's Front project “For the Rights of Debtors.” According to her, there is no reason for this trend to stop.
Banks may reduce limits to balance financial indicators and reduce reserves, Novikombank stated. This is a necessary measure to prevent a lack of liquidity in the event of arrears, amid low payment discipline, Vladimir Chernov, an analyst at Freedom Finance Global, explained.
In addition, people with a good understanding of personal finance more often use credit cards and pay off their debts in full within the interest-free period, says Elman Mekhtiev, general director of the Association for the Development of Financial Education. In such cases, the bank is effectively offering 0% interest loans while attracting money from the market at an average of 14%.
However, the primary targets for the cancellations are users with unstable incomes, high debt levels, those who frequently withdraw cash from the card, or clients whose income has suddenly decreased, Chernov says. He added that the tightened rules for credit cards will remain in place until the benchmark rate begins to fall and banks' funding costs become lower.
Translation by Iurie Tataru
