Commenting on plans to set a cap on cash payments made by individuals at UAH 100 thousand, Deputy Governor of the National Bank of Ukraine Vira Rychakivska pointed out that the move had been prompted by the need to secure the steady inflow of cash into the banking system and speed up the velocity of cash in circulation, which would contribute to reducing the use of cash and promote cashless payments.
Steps to lower an upper limit on cash payments from UAH 150 thousand to UAH 100 thousand aim to legalize proceeds and consequently reduce the size of the shadow economy in Ukraine. The restrictions apply only to large purchases and will not bring any inconvenience to ordinary citizens making cash payments.
It is worth mentioning that a public consultation on the proposed draft Resolution of the National Bank of Ukraine Board amending NBU Board Resolution No. 210, dated June 6, 2013, is currently under way. The public consultation will run until July 1, 2014. People can send their proposals and feedback until this date.
On September 1, 2013, NBU Board Resolution under which cash payments between an individual (natural person) and an enterprise (entrepreneur) for goods and services should not exceed UAH 150,000 came into force. In addition, cash payments of up to UAH 150,000 are permitted between natural persons under purchase and sales agreements subject to notarization.
Putting these restrictions in place led to a 1.8-fold increase in cashless payments for goods and services made by individuals in the fourth quarter of 2013, as compared with the same period of the previous year. Over 4 months of 2014, cashless payments for goods and services made by individuals recorded a 2.4-fold increase, as compared with the same period of the previous year.
At the same time, in order to tighten counteraction to illegal transactions, according to Resolution No. 328 issued by the National Bank of Ukraine Board, dated May 30, 2014, banks are only allowed to issue cash funds in the national currency of up to UAH 150,000 to one client within a 24-hour period.
It should be noted that these restrictions do not apply to the funds disbursed to pay salaries, travel allowances, pensions, scholarships, other social benefits, and other equivalent payments (except for welfare assistance); and the funds withdrawn from checking and saving accounts provided that they have been deposited in cash and within the deposited amounts. Thus, this norm will not bring any inconvenience to ordinary citizens.
At the same time, cashless payments can be made without any restrictions and banks are obliged to execute cashless payments or money transfers upon the request of clients in full.
According to data from report form No 748 "Cash flow statement".