You're reading: NBU decides to limit cash transactions to Hr 150,000 since September

The National Bank of Ukraine (NBU) has decided to limit cash transactions to Hr 150,000 from Sep 1, Deputy Head of the NBU Vira Rychakovska said at a briefing on Thursday.

“The restriction of cash payments between individuals and legal entities, as well as between individuals under sale and purchase contracts that are subject to notarization, is set at the amount of Hr 150,000. The main goal is to expand non-cash payments,” she said.

The NBU board made the relevant decision on June 6.

According to the NBU deputy head, the implementation of this decision will generate the additional liquidity of Hr 14-16 billion per year for banks and provide additional GDP growth of 0.2%.

Regarding the prospects for reducing the size of restriction in the future, Rychakovska noted that it is advisable to consider this issue only under the appropriate development of the infrastructure of cashless payments.

She also stressed that the establishment of this restriction would increase the security of payments.

Regarding the banks’ charges for non-cash transactions by individuals, she noted that the NBU has no proper instruments for limits, but expects competition between the banks to have a positive impact on their size.

“We will monitor the issue of commission,” she said.