The Government plans to convert the payments of the state social benefits to electronic money. According to a signed resolution,1 the Ministry of Labor and Social Protection of the Population together with the National Bank should approve the conversion plan by 1 January 2022 and ensure the technical readiness of the payments system by 1 July 2022.
The resolution approved the procedures for the remittance, accounting and usage of the state social benefits in electronic money. The rules introduce the concepts of social and business wallets:
- Social wallet - an individual's electronic wallet intended for receipt of the state benefits and social payments in electronic money, as well as for their further accounting, storage and spending.
- A business wallet - an electronic wallet of a company, an individual entrepreneur or an individual engaged in private practice, intended to perform operations with electronic money received from social wallets of individuals as the payment for goods, work or services.
The National Bank will issue electronic money for the payment of the state social benefits. The National Bank will regulate the procedure for issuance, usage and repayment of electronic money, as well as relations between participants of the electronic money system. An operator of the instant payment system will support e-money instant payments.
Benefits and social payments from the state budget or the State Social Insurance Fund will be remitted to social wallets in the form of electronic money. The operator of the instant payment system will ensure the confidentiality of information on balances or movements of electronic money on social wallets.
An owner of the social wallet will be able to use electronic money to:
- transfer to a business wallet as a payment for goods, work and/or services;
- exchange for cash or to transfer money to a bank account through the instant payment system.
The relevant state authorities in the social, labor and trade spheres will monitor the usage of the state social benefits remitted in the form of electronic money, based on data provided by the operator of the instant payment system.
The resolution came into effect on 8 September 2021.
1 Resolution No. 619 of the Government of the Republic of Kazakhstan On Approval of the Procedures for the Remittance, Accounting and Usage of the Social Payments from the State Budget and/or the State Social Insurance Fund Remitted in the Form of Electronic Money, and Monitoring the Use of the Social Benefits, dated 8 September 2021