In May 2018 Turkmenistan’s retirees were informed unexpectedly that starting from June onward their pensions will no longer be handed out in cash in bank offices as before but will be transferred to a bank card for which a bank account needs to be opened.
Since it is impossible to change the payment system for all the retirees it was announced that from June onward pensions will be paid to bank cards of residents under 65 years old. Later non-cash pension payments will be introduced for the remaining senior citizens.
The retirees were instructed to submit copies of their passport and pay a fee of 20 manats for bank cards. Bank employees filled out the application forms for them.
The non-cash system was launched on 1 June with major failures.Correspondents of “Chronicles of Turkmenistan” report that not many retirees managed to have the bank cards issued on time to get their pensions transferred for the previous month.
Those whose pensions were not transferred on time received vouchers which will be used to get pensions in cash.
The retirees who had obtained cards were not familiar with how to use them. Later it turned out that bank cards are scheduled to be issued to retirees under 65 y.o. rather than 70 y.o. as had been previously announced. This resulted in big queues forming in front of the banks.
It came as an unpleasant surprise for card holders that during a pension transfer to bank cards and cash withdrawals from ATMs a commission is retained for bank services.
A commission of a little over 1% applies for cash withdrawals.For instance, for a cash withdrawal of 00 manats from an ATM, 4.6 manats are retained for services rendered by the bank.
Queues are being formed in front of ATMs as even in Ashgabat not all stores are equipped with PDQ machines.
The overwhelming majority of local residents do their grocery shopping at the markets where no terminals are available and only cash payments are accepted.
The situation in the provinces is more complicated as the ATMs, limited in number, are installed only in major cities and quickly run out of banknotes. Rural inhabitants are forced to head to cities in search of ATMs.
Sources of “Chronicles of Turkmenistan” from Tejen reported that starting from June child and disability allowances will also be transferred to bank cards.