Photo from UNIAN
The National Bank of Ukraine (NBU) suggests reducing a limitation on cash settlements between individuals to UAH 50,000 (about $2,265 at the official forex rate as of July 27) from UAH 150,000 (about $6,795), currently in force, according to a posting on the NBU's website, which refers to a draft resolution proposed for a public debate until August 25.
"The decision to cap cash settlements between individuals at UAH 50,000 is based on the need to ensure stable cash injections into the banking system and the acceleration of its circulation, to narrow the scope of using cash money and facilitate the development of the non-cash segment," the posting reads.
At the same time, the NBU reported that payments can be further handled without any limitations in the non-cash format, while banks are required to ensure non-cash transfers in full at the request of customers.
The regulator stresses that the reform and development of the country's payment system are an integral part of the reformation of the state's financial sector and the development of the non-cash payment system and the reduction of the share of payments in cash are priority tasks.
"Once the problem has been solved, it will bring Ukraine closer to European living standards, accelerate a reduction in the share of the shadow economy and will be conducive to ensuring the stable operation of the banking system," the NBU said.