Starting January 4, 2017, the National Bank of Ukraine decreases the upper threshold for settlement of payments in cash for individuals from UAH 150,000 to UAH 50,000. The respective provisions are set out in NBU Board Resolution No. 407, dated 25 November 2016, On Amendments to NBU Board Resolution No. 210, dated 6 June 2013, On Setting an Upper Limit on Cash Payments (hereinafter – Resolution No.407).
The current resolution sets an upper limit for settlement of payments in cash per one business day between individuals and enterprises (sole proprietors) and between individuals under purchase-sale agreements that are subject to notarization. The upper limit on the settlement of payments in cash between enterprises (sole proprietors) remains unchanged at UAH 10,000 per day.
These changes will put no restrictions on regular payments of the citizens and will only apply to large purchases (such as real estate, jewelry, vehicles, pieces of art, etc.
This resolution was set to ensure stable currency flow to the banks and turnover acceleration. This also should help to decrease cash usage and develop the wire transfer.
Many European countries, France, Belgium, Portugal, Italy, Spain and Greece among them, have already established caps on cash payments.
It should be noted that the Comprehensive Program of Ukrainian Financial Sector Development Until 2020 aims to gradually reduce the level of cash in the economy to 12% by 2020. In 2014, the M0-to-GDP ratio stood at 18.1%, having decreased to 14.6% in 2015.
Source: The National Bank of Ukraine