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The National Bank of Ukraine, the country’s Central Bank, has issued a press release stating that it has passed a resolution which restricts the use of cash within the country.

The bank has passed a “Resolution On Setting a Cap on Cash Payment” (Resolution No. 210, dated June 6, 2013) whereby cash payments have been limited as follows:

UAH 10, 000 (US$453) on cash payments made between enterprises (sole proprietors) within one day;

UAH 150, 000 (US$6,792) 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.

The aim of introducing a cap on cash payments is to reduce the use of cash within the country which, says the bank, is part of reforming and developing the country’s payment system. It hopes to develop the use of cashless payments to 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”.

The bank has also suggested amendments be made to part 3 of Article 1087 of the Civil Code of Ukraine whereby cash payments by “economic agents and natural persons” be limited to up to fifteen times the minimum wage. In the past, cash payments were limited to UAH 18,270 (US$827) or approximately EUR1,000.

To read the press release from the National Bank of Ukraine in full, click here.