An integral part of the financial sector reform is reforming and development of the country’s payment system. Thus, the highest priority task on the reform agenda is to develop the system of cashless payments and reduce the share of cash payments. Tackling this task will bring Ukraine closer to the European life standards, step up efforts to clamp down on the shadow economy, and contribute to the stability of the banking system.
For this purpose and with the aim of meeting the requirements of Article 1087 of the Civil Code of Ukraine, in 2013, the National Bank of Ukraine passed a Resolution On Setting a Cap on Cash Payments (Resolution No. 210, dated June 6, 2013), whereby the upper limits on cash payments were set as follows:
- UAH 10, 000 – on cash payments made between enterprises (sole proprietors) within one day;
- UAH 150, 000 – on settlements made between natural persons and enterprises (sole proprietors) to pay for goods (works, services) within one day;
- UAH 150, 000 – on cash payments made between natural persons under purchase-sale agreements that are subject to notarisation.
At the same time, a Draft Law of Ukraine On Amendments to the Tax Code of Ukraine and Certain Laws of Ukraine (with regard to the tax reform) has suggested amendments be made to part 3 of Article 1087 of the Civil Code of Ukraine, notably: an upper limit on cash payments made by economic agents and natural persons to be set in the amount of up to fifteen minimum wages as established by the Law of Ukraine on the State Budget for the respective year. Cash payments were to be limited to UAH 18,270 or approximately EUR 1,000 at the exchange rate effective at that period.
The Draft Law of Ukraine passed by the Verkhovna Rada of Ukraine and signed by the President of Ukraine in late December 2014. However, Law of Ukraine No. 71-VIII of December 28, 2014, On Amendments to the Tax Code of Ukraine and Certain Legal Acts of Ukraine (with regard to the tax reform) do not contain the provisions limiting cash payments made by economic agents and natural persons to the amount of up to fifteen minimum wages.
The need to ensure stable inflows of cash into the banking sector and accelerate the velocity of cash circulation, limit the use of cash as a means of payment and step up the development of cashless segment have called for the necessity to set a cap on cash payments made by natural persons at UAH 50 thousand.
At the same time, no restrictions will apply to cashless settlements and banks are obliged to ensure the execution of cashless payments in full upon the request of clients.
In view of the above, the National Bank of Ukraine has initiated a public consultation on a Draft Resolution of the Board of the National Bank of Ukraine On Amendments to NBU Board Resolution No 210 of June 6 2013 Please send your proposals and comments to the National Bank of Ukraine by mail or email by August 25, 2015.
Postal address: 01601, Instytutska St. Kyiv, 9, Cash Circulation Department of the National Bank of Ukraine.
E-Mail: [email protected].