Title: New 500 Million Rial Welfare Card Launched by Refah Bank for Employees and Retirees
Introduction
In a significant move to support household purchasing power and promote domestic goods, Refah Bank has officially launched a new “500 Million Rial Welfare Card” scheme. This initiative, linked to government securities known as “GAM” bonds, is designed to provide low-interest credit for employees and retirees who are customers of the bank.
What is the Welfare Card?
The Welfare Card functions as a specialized loan facility. It allows eligible individuals to make purchases at a network of pre-approved stores. The card is directly connected to the holder’s GAM bonds, which serve as the financial instrument backing the credit. Payments to the merchants are settled by the bank through the issuance of these bonds, creating a streamlined and secure financial process.
Eligibility and Phased Rollout
The scheme is being implemented in two distinct phases to ensure a smooth and effective launch.
- Phase One: The initial phase targets specific groups, including retirees, active workers, and government employees who receive their salaries or pensions through Refah Bank.
- Phase Two: A subsequent, broader phase is planned for the next Iranian year. This expansion will extend the card’s benefits to all citizens who hold GAM bonds, significantly widening the program’s reach.
Key Features and National Economic Benefits
The Welfare Card scheme incorporates several features aimed at providing tangible benefits to recipients while supporting national economic objectives.
- Support for Domestic Production: A core requirement of the card is that all purchases must be made from contracted stores that supply Iranian-made products. This policy is designed to directly bolster domestic manufacturers and strengthen the national economy.
- Favorable Financial Terms: The loan attached to the card comes with a 24-month repayment period and a low-interest rate of just 5 percent. This structure is intended to make the credit accessible and manageable for the target demographic.
- Targeted Economic Stimulus: Financial experts have highlighted the scheme’s potential to effectively increase the purchasing power of working-class and retired households. By facilitating access to credit for essential goods, the initiative is seen as a practical measure to support living standards and stimulate economic activity from the ground up.
How to Apply
Interested individuals who meet the phase-one criteria must apply in person at designated Refah Bank branches officially announced by the bank. Not all branches are equipped to process these applications. Upon issuance, cardholders will receive a full list of authorized retail partners where the Welfare Card can be used.