What you need to know about payments of pensions and benefits in digital rubles
In autumn, the first stage of the digital ruble implementation began in Russia. This national currency will become the third, along with cash and non-cash money, and will affect many areas of life, including the system of social benefits. Starting next year, pensions and benefits will be available in digital format. How payments will be made, whether it is possible to abandon accruals in digital rubles and whether the usual banknotes will disappear — Izvestia tells.
What is the meaning of the digital ruble?
The digital ruble is the national currency issued by the Bank of Russia in electronic form. It is equal to an ordinary ruble and is its third form, complementing cash and non-cash money. The legal status of the digital ruble is fixed by the Federal Law "On the Digital Ruble", adopted in July 2023.
The key purpose of its implementation is to increase the speed, security and transparency of financial transactions for all participants: the state, business and citizens. For ordinary users, this means the ability to make instant and free transfers, pay for goods and services without commission, including offline, using QR codes.
According to Sofia Glavina, associate professor of the Faculty of Economics at RUDN University, integration with the mobile application will allow online purchases without entering card data, which will reduce the risks of fraud.
The economist also noted that the benefits will become more noticeable over time. The expert attributed to them, for example, free transfers between individuals and integration with government portals, which will allow paying for utilities and many other services.
In addition, it will be possible to make fast and cheap cross-border payments and convert funds into other currencies. This way, it will be more convenient for tourists to pay in countries where there is already a digital currency.
What will be the payments in digital rubles?
As the infrastructure becomes ready, almost all government payments can be made in digital rubles. First of all, we are talking about:
- pensions,
- scholarships for college and university students,
- maternity benefits;
- lump sum payment at the birth of a child;
- unemployment benefits;
- salaries of state employees.
The transfer of social benefits to the digital ruble will be phased. Starting from October 1, 2025, certain types of federal expenditures will be transferred to the new currency as part of pilot projects. According to the Government's plans, this list will include some social benefits, such as child benefits.
The system will be scaled starting from January 1, 2026. The digital ruble will be able to be used for any payments from the federal budget. Starting in 2027, it is planned to extend the practice to regional budgets and extra-budgetary funds.
According to the authorities, there will be no abrupt transfer of all payments. This approach, as noted by Anton Nemkin, a member of the State Duma Committee on Information Policy, will ensure the smooth implementation of the digital ruble without drastic changes for citizens.
How to receive payment in digital rubles
The procedure for obtaining a pension or allowance in digital rubles will not take much time. If a citizen wants to receive funds to a digital account, he needs to perform several actions.
- Open a digital wallet through the bank's mobile application by selecting the "Digital Ruble" section. The process is similar to opening a virtual card.
- Select the form of receiving the payment in digital rubles. If another option is selected, the allowance will be credited to the card or account as usual.
- To pay for the goods, you need to use a QR code and select "Digital Ruble". You can withdraw cash through an ATM after transferring to a regular account, or set up automatic transfer of digital rubles to the card.
Is it possible to abandon the digital ruble
The use of the digital ruble is completely voluntary. This principle has been repeatedly emphasized by the head of the Bank of Russia, Elvira Nabiullina. Citizens themselves have the right to decide in what form — cash, non—cash or digital - to receive funds.
If a person does not plan to use the new currency, they do not need to open a digital wallet. No refusal requests are required either.
If the wallet has been opened and the decision has been reviewed, you can transfer all funds from it to a regular bank account or card at any time, and then cash them out through an ATM.
Ways to use the digital ruble
The digital ruble is a full—fledged means of payment with extensive functionality. With its help, you can:
- pay for goods and services;
- make transfers between individuals;.
- pay for public services and housing and communal services;
- convert to other forms of money;
- to settle accounts with suppliers without bank fees.
It is important to note that the digital ruble is not intended for savings. No interest is charged on its balance, and it is also impossible to open a deposit in this currency.
What will happen to the cash
With the advent of the digital ruble, cash will not disappear from circulation. All three forms of national currency will co-exist in parallel and have equal status. The introduction of digital currency will not lead to a reduction in the total money supply, but will only redistribute part of it into a new format.
According to the authorities, cash will remain available at least until 2030. Currently, only 10% of payments are made using them, while the share of non-cash transactions is approaching 90%, which makes their servicing too expensive for banks.
At the same time, it is emphasized that the introduction of the digital ruble is not aimed at displacing old forms, but at creating a more modern, efficient and competitive financial ecosystem, which, according to experts, will ultimately improve the quality and convenience of financial services for the public.
Earlier, Izvestia published a forecast for the development of digital currencies in the world.
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