The National Bank of Ukraine has launched a pilot project to transfer its cash inventories to authorized banks for storage. This is being done under a central bank initiative to delegate some of the functions of its regional offices to banks.

The NBU will store its cash inventories in the regional branches of authorized banks, which will supply cash to the banks in the regions, and will accept surplus cash from these banks.

This will allow the NBU to gradually outsource cash handling completely, thus replacing the model of partially outsourced cash handling that is currently in place in Ukraine.

The above changes are in line with the NBU’s Policy on Cash Circulation, which was approved by NBU Board Decision No. 207-D, dated 11 August 2016.

For reference

The NBU selects banks to provide cash custodial services in accordance with the Resolution on Setting the Selection Procedure and Eligibility Criteria Banks Must Meet to Provide Cash Custodial Services to the NBU (Resolution No. 389).

Only banks that have submitted written applications to provide custodial services and meet the criteria set out in Resolution No. 389 can be selected.