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Regulator Introduces Rules for Interaction of Cash-in-Transit Companies With Banks When Handling Cash

The National Bank of Ukraine (NBU) has extended the cash transaction requirements for banks in Ukraine to cover cash-in-transit (CIT) companies that process and store cash.

In other words, the CITs will interact with the NBU, other banks and bank clients according to cash handling rules applicable to banks.

This regulator’s decision will facilitate further transition to a delegated model of cash circulation management and implementation of international CIT practices in Ukraine.

It will allow to regulate the CIT operations in the cash market, as well as to improve the quality of domestic currency in circulation.

In particular, the CIT companies shall:

  • process cash on the CIT company locations specifically equipped for these purposes
  • control the fitness and authenticity of banknotes and coins using relevant equipment (devices) while accepting and processing cash
  • sort banknotes and coins for fitness.

In addition, the NBU has improved the process of cash depositing by CITs, including mandatory return of unfit banknotes and coins:

  • to authorized banks/other banks - on contractual terms
  • to the NBU - under the Unified Bank Servicing Agreement.

As stated in the NBU Board Resolution No. 43 On Approval of Amendments to the Instruction On Cash Operations by Banks in Ukraine dated 1 March 2020 and coming into force on 1 June 2020.

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