The Central Bank supported the introduction of biometrics when issuing microloans online

The authorities plan to oblige Russians to undergo biometric identification when applying for microcredit online. This is one of the proposals included in the comprehensive draft law on combating cyberbullying. It was submitted to the State Duma in February, and the first reading is scheduled for March 18.

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In general, the Central Bank supports the expansion of the unified biometric system for microloans, Alexey Guznov, Deputy Chairman of the Central Bank, told Izvestia.

"This process allows for better identification of the individual. However, most companies will need technical improvements, so the measure should be introduced with a time lag. And, possibly, with a class division of MFIs (microfinance organizations. — Ed.). It will take discussion and adjustment, but this is a normal process," Guznov said.

The press service of the Ministry of Finance clarified that if the bill is adopted in its current form, then at each remote loan application, MFIs will have to confirm the identity of the client using "Public Services" and biometrics from the Unified Biometric System (UBS).

At the same time, as the department added, the use of biometrics will not be mandatory for Russians, it remains possible to obtain a loan with a personal visit to a microfinance organization.

However, the market opposed this initiative. Currently, the data of only 3 million people is stored in the UBS database, while more than 10 million Russians use the services of MFIs, the press service of the Self-regulatory organization (SRO) "Microfinance and Development" emphasized.