National Bank of Ukraine has send out letters to financial institutions recommending to hold up on cashing in plastic cards on the basis of their being ‘questionable’. However, no explanation of the term ‘questionable plastic card’ has been given. It seems that the main idea is to cash in as few deposit cards as possible.
This directive is explained by the National Bank as follows: recently there has been a rise in the numbers of card withdrawals. As a result of this, in the fourth quarter of 2015 there has been an increase of over 18% in multiple plastic card transactions as compared to the third quarter. The total amount of these transactions is valued at over 250 billion hryvnas.
The figures are expected to rise in the first quarter of the present year as well. National Bank of Ukraine is concerned about the ‘hollowing out’ of the country’s funds, which may consequently lead to the shortage of money stock followed by an inflation.
However, the letter also stresses that this measure serves as a guideline, not as a legislative act. Nevertheless, the banks still have their fixed limits, which they are strongly advised not to exceed or else a range of fiscal measures will have to be applied to the banks’ staff.