Cash turnover – the movement of cash in the sphere of circulation and its performance as a means of payment and medium of exchange. This is part of the monetary turnover, equal to the sum of all payments made in cash over a certain period of time; this is the process of continuous circulation of cash banknotes (banknotes, treasury notes, small change). This turnover serves the receipt and expenditure of most of the population’s cash income. In Russian reality, cash also serves most of the economic relations of legal entities, especially private entrepreneurs.
Cash is used:
– for the circulation of goods and services;
– for calculations for the payment of wages and equivalent payments;
– for payment of securities and payment of income on them;
– for household payments for utilities. Cash turnover in Russian Federation organized by the state represented by the Central Bank.
Cash is accepted and issued cash settlement centers at the territorial main departments of the Bank of Russia, which form a working cash register for this purpose, as well as reserve funds. Reserve funds banknotes and coins represent a stock of banknotes that have not been issued for circulation to regulate cash resources.
Cash is issued into circulation by the Bank of Russia on the basis of an emission permit - a document giving the right to the Bank of Russia to support the working cash register from reserve funds of banknotes and coins. This document is issued by the Board of the Bank of Russia within the limits of the emission directive, i.e., the maximum release of money into circulation established by the Government of the Russian Federation.
An important role in stabilizing money circulation in Russia was played by the Regulation “On the rules for organizing cash circulation on the territory of the Russian Federation” approved by the Bank of Russia on January 5, 1998, which is mandatory for implementation by territorial branches of the Bank of Russia, cash settlement centers, credit organizations and their branches , including institutions of the Savings Bank of the Russian Federation, as well as organizations, enterprises and institutions on the territory of the Russian Federation.
Basic principles of organizing cash flow in the Russian Federation are as follows:
– all enterprises and organizations must keep cash in commercial banks (except for the amount of the limit established by the servicing bank);
– banks set cash balance limits for enterprises of all forms of ownership;
– in excess of the limit, cash can be kept at enterprises for the issuance of funds for wages and social payments for no more than three days;
– cash circulation serves as the object of forecast planning;
– management of monetary circulation is carried out in a centralized manner;
– the organization of cash circulation is aimed at ensuring the stability, elasticity and economy of money circulation. Regional branches of the Bank of Russia control the work of bank institutions in organizing cash turnover, compliance by enterprises with the procedure for conducting cash transactions and working with cash in accordance with the above Regulations.
Money turnover– movement of money in cash and non-cash forms serving the sale of goods, as well as non-commodity payments and settlements in the household. Cash turnover is divided into cash and non-cash. Participants in cash circulation are enterprises, organizations, institutions, regardless of their form of ownership, banking financial authorities and the population. Cash turnover– a set of payments made in cash.
Cash circulation is the movement of cash in the sphere of circulation and the performance of two functions by it: a means of payment and a means of circulation. Cash movement is carried out using various types money banknotes, metal coins, other credit instruments. The issue is carried out by the Central Bank of Russia. He issues cash into circulation and withdraws it if it has become unusable, and also replaces the money with new types of bills and coins.
The structure of cash turnover involves the inclusion of certain cash flows between the subjects of monetary relations, or cash turnover: 1. Between the central bank system and the system of commercial banks - fixes the monopoly of the central bank on the issue of cash in circulation, linking cash circulation with the processes of supplying banks with cash from the central bank and its collection (receipt) at the central bank. Cash issued by the central bank goes either directly to the operating cash desks of commercial banks or to the cash desks of organizations.2. Between commercial banks, between banks and their clients - covers the area of cash collection from clients of commercial banks and supplying these clients with the necessary cash. This turnover ensures the receipt and servicing of the expenditure of cash income of the population. The population also uses cash for mutual settlements, but most of it is spent on paying taxes, fees, utility bills, purchasing goods and paying for various paid services, purchasing securities, paying fines, etc.3. Between organizations and the population - provides cash services to the population through banks and organizations. Cash turnover between organizations is insignificant, since the bulk of payments are made non-cash. For each organization, limits are set on the balance of cash in the cash register, and money exceeding the limit must be deposited with the commercial bank serving this organization. Part of the cash in the cash registers of organizations is used for settlements between them, but the majority is transferred to the population in the form of various cash incomes.
4. Between individual citizens - appears when using cash, when payment is made by simply transferring a banknote to the payee. In this case, no requirements are required for the two parties to the transaction. technical means. There is also no requirement to notify a third party and obtain their confirmation of the right to complete a transaction. The payee can spend the money received immediately.
Cash circulation begins at the cash settlement centers of the Central Bank of Russia. Cash is transferred from their reserve funds to circulating cash, thereby entering circulation. From the working cash desks of the RCC, cash is sent to the operating cash desks of commercial banks. Most of the cash is issued to clients - legal entities and individuals. Part of the cash in the cash registers of enterprises is used for settlements between them, but the majority is transferred to the population in the form of various types of cash income. The population also uses cash for mutual settlements, but most of it is spent on paying taxes, fees, insurance payments, etc. Thus, money goes either directly to the operating cash desks of commercial banks, or to the cash desks of enterprises and organizations. Cash circulation in Russia is organized on the basis of the following principles: all enterprises and organizations must keep cash (except for the part established by the limit) in commercial banks; banks set cash balance limits for enterprises of all forms of ownership; circulation of cash serves as the object of forecast planning; monetary management is carried out centrally; the goal of cash turnover is to ensure the stability, elasticity and economy of cash circulation; Enterprises can receive cash only from the banks that serve them.
Cash circulation is an integral part of money circulation within the national economy. It is realized as a constant circulation of cash in the economy. The volumes and speed of circulation, the motivation for cash transactions of all participants in money circulation reflect the needs of society as a whole and its individual citizens. Cash turnover is the movement of money in cash when selling goods, providing services and making various types of payments.
Cash turnover is defined as a part of cash turnover equal to the sum of all payments made in cash for a certain period of time. Cash turnover in all countries, regardless of the level of economic development, constitutes a smaller part of cash turnover, but has important functional significance.
Only cash as legal tender is required to be accepted at face value for all types of payments throughout the state at any time of the day and in unlimited quantities.
In the sphere of cash circulation, the final sale of produced goods, works and services takes place, and the correspondence of supply and demand is checked. The purchasing power of the national currency largely depends on the state of cash circulation.
Cash circulation is a process of continuous movement of cash banknotes issued by the Central Bank of the country (banknotes and small change), during which banknotes primarily perform the functions of a medium of circulation and a means of payment.
The structure of cash turnover involves the inclusion of certain cash flows between the subjects of monetary relations, or cash turnover:
1) between the central bank system and the system of commercial banks;
2) between commercial banks, between banks and their clients;
3) between organizations, between organizations and the population;
4) between individual citizens.
Four consolidated cash flows allow you to trace the level and stages of organizing cash flow.
First cash flow fixes the monopoly of the central bank on the issue of cash in circulation, linking cash circulation with the processes of supplying banks with cash from the central bank and its collection (receipt) at the central bank. Cash issued by the central bank goes either directly to the operating cash desks of commercial banks or to the cash desks of organizations (primarily trade organizations and organizations providing services to the public).
Second stream cash covers the scope of cash collection from clients of commercial banks and supplying these clients with the necessary cash. This money flow is regulated by the central bank using the rules it sets. On their basis, commercial banks carry out their cash transactions related to cash. This turnover ensures the receipt and servicing of the expenditure of cash income of the population. Banks can transfer some cash to each other for a fee, but most of the money is issued to clients: either to the cash desks of organizations or directly to the population. The population also uses cash for mutual settlements, but most of it is spent on paying taxes, fees, insurance payments, utility bills, repaying loans, purchasing goods and paying for various paid services, purchasing securities, lottery tickets, rent payments, paying fines, penalties and penalties, etc.
Third cash flow provides cash services to the population through banks and organizations. Cash turnover between organizations is insignificant, since the bulk of payments are made non-cash. For each organization, limits are set on the balance of cash in the cash register, and money exceeding the limit must be deposited with the commercial bank serving this organization. Part of the cash in the cash registers of organizations is used for settlements between them, but the majority is transferred to the population in the form of various cash incomes (salaries, pensions and benefits, scholarships, insurance compensation, dividends, proceeds from the sale of securities, etc. ).
Fourth stream cash appears when using cash, when payment is made by simply transferring a banknote to the payee. At the same time, no technical means are required for the two parties to the transaction. There is also no requirement to notify a third party and obtain their confirmation of the right to complete a transaction. The recipient of the payment, whoever he is, can immediately spend the money received.
The circulation of cash can also be considered by points (locations) of location or movement:
In central or regional central bank vaults;
In the divisions of the central bank (in the working cash desks and reserve funds of cash settlement centers);
In operational cash desks of commercial banks;
At the cash desks of organizations;
On the way from one ticket office to another;
In the hands of the population.
Cash circulation is organized by the state represented by the central bank in accordance with the procedure for maintaining cash discipline in the economy. It reflects a set of general rules, forms of primary cash documents, reporting forms that should guide organizations of all forms of ownership when organizing cash circulation passing through their cash desks.
In some countries, control over compliance with cash discipline is assigned to credit institutions (banks) that provide cash services to their clients, or to tax authorities.
The scheme of cash turnover in Russia can be presented as follows (Fig. 6.3).
Rice. 6.3. Cash circulation system
Cash turnover in Russia has the following peculiarities:
Large share of cash in the money supply (more than 30%);
A significant amount of cash payments, which allows you to evade taxes;
Weak control on the part of credit institutions (including on the part of bank service organizations) over the cash discipline of organizations;
Dollarization of cash turnover (use of foreign currency in circulation).
The task of the central bank in organizing cash circulation is to ensure its stability, elasticity and efficiency. Therefore, cash circulation is the subject of careful forecast planning by the central bank and statistical authorities. Cash circulation is managed centrally through the activities of the Central Bank and its divisions. To solve the problem set by the central bank from credit institutions compliance required:
The established procedure for conducting cash transactions;
Rules for organizing the receipt of cash in their cash registers;
Rules for organizing the receipt of cash from their cash registers;
The limit of their cash balance (the minimum allowable cash balance in the operating cash desk at the end of the day);
Procedure for payment in cash;
Cash payment limit (limit between legal entities).
All organizations participating in economic turnover must keep cash (except for the part established by the limit) in commercial banks. Credit institutions (banks) have cash balance limits for organizations of all forms of ownership. Organizations can receive cash only from the banks that serve them.
The targeted use of cash by participants in cash circulation remains the defining principle of organizing cash circulation. Compliance by clients with this principle is reflected in the mandatory reporting by clients about the directions of use of the amount of money received from the bank, and the bank verifies the accuracy of this message. The organization reports the purpose of receiving cash in a cash receipt - the bank’s main cash expense document. Cash receipts bound in check books are issued to customers upon opening a bank account.
The implementation of these settings allows us to form the basis for a stable organization of cash circulation.
The process of continuous movement of banknotes in cash and non-cash forms is called cash turnover. It is part of the country's payment turnover, while money, while in circulation, performs the functions of payment, circulation and accumulation.
Money turnover consists of separate channels for the movement of money, through which they move towards each other (and in quantitatively unequal flows in absolute value), for example, between the Central Bank and commercial banks; between enterprises and organizations; between banks and enterprises; between banks and the population; between individuals, etc.
Issue of money into circulation happens all the time. Cash are released into circulation when banks issue them to their customers during cash transactions.
Non-cash money issued by commercial banks when a loan is provided to a client. At the same time, clients repay loans and deposit cash at the bank's cash desk. As a result, the total amount of money in circulation may not increase.
Under issue of money refers to the release of money into circulation, which leads to a general increase in the money supply in circulation.
Structure of money turnover can be characterized by different criteria: by economic content and by the form of money functioning in it.
According to the economic content of individual parts of money circulation, serving different areas of monetary relations, it can be subdivided:
- on monetary and commodity turnover (monetary settlement), serving the market for means of production, the market for consumer products and services, and the labor market;
- for money turnover associated with non-commodity payments (monetary and monetary turnover), serving the credit market, the securities market, and the foreign exchange market.
At the same time, money freely moves from one part of the money turnover to another in accordance with the emerging market conditions as a result of the action of the law of supply and demand.
The most common is the classification of money turnover depending on the form of money functioning in it - on cash And non-cash.
Cash turnover – part of the monetary turnover, equal to the sum of all payments made in cash over a certain period of time, is the process of continuous circulation of cash banknotes (banknotes, treasury notes, small change). Cash circulation in the Russian Federation is organized by the state represented by the Central Bank. This turnover serves the receipt and expenditure of most of the money
Cash turnover - it is a collection of payments over a period of time that reflects the movement of cash both as a medium of exchange and as a means of payment.
Scope of use of cash is mainly related to the income and expenses of the population and includes:
- settlements between the population and retail and public catering enterprises;
- and payment of other cash income;
- depositing money by the population and receiving money from the bank;
- payment of pensions, benefits, scholarships, insurance compensation;
- issuance of consumer loans by credit institutions;
- payment for securities and payment of income on them;
- utility bills, payment of taxes to the budget by the population.
Thus, cash is used for the circulation of goods and services, for payments not directly related to the movement of goods and services. Cash circulation is carried out using various types of money: metal coins, other credit instruments (bank bills, credit cards). Cash issuance is carried out, as a rule, by central banks and, in some countries, by the treasury. As a general rule, cash flow between enterprises and organizations is insignificant.
In countries with developed market economies, the share of cash payments in the entire payment turnover is 3-8%. This is achieved by transferring salaries to bank accounts. In the USA, less than 1% of the population receives wages in cash, in England - up to 10%, in Canada - 5%. All payments by the population for goods and services are carried out through checks and various payment cards.
Currently, the scope of cash turnover in Russia is unreasonably wide. If at the beginning of market reforms it reached 1/4, now it exceeds 40%.
Basic reasons for the expansion of cash turnover:
- economic crisis;
- cash crisis;
- non-payment crisis;
- slowdown in settlements;
- an insufficiently organized system of interbank settlements;
- deliberate reduction of profits in order to avoid taxes and expand cash payments outside banks.
A sharp expansion of cash circulation leads to an increase in distribution costs, the replacement of old banknotes with new ones, the emergence of “black cash”, and a shortage of tax payments. The results are deficits, financial instability. If money circulation passed through bank accounts, then the central bank would have more opportunities to take it into account, regulate it and have complete information about the state of the economy. This would make it possible not to expand emissions. Unaccounted cash turnover is most often converted into foreign currency, and this requires the state to expand the process of issuing cash for payments from the budget.
The Civil Code of the Russian Federation regulates in detail the rules for using cash in the country. At the same time, different procedures for settlements with the participation of the population have been established, depending on the connection between cash payments and business activities. These payments are made by bank transfer. Persons not engaged in entrepreneurial activities make payments both in cash and non-cash. In accordance with the current procedure for organizing cash circulation, limits for the balance of cash in their cash registers are established for each enterprise, and all money exceeding the limit must be deposited with the bank servicing this enterprise. If there are several accounts in different banks, the enterprise, at its discretion, applies to one of them with the expectation of establishing a limit on the cash balance in the cash register. When checking a given enterprise, banks are guided by this limit. For an enterprise that has not submitted a settlement to the bank, the cash balance limit is considered zero, and undelivered cash is considered above the limit.
The issuance of cash to enterprises from the bank is carried out at the expense of current receipts in the bank's cash desks. To ensure timely cash payments, the RCC of the Central Bank of the Russian Federation establishes for each bank the amount of the minimum allowable cash balance in the operating cash desk at the end of the day.
Before the transition to market relations, cash turnover was planned and regulated on the basis of the balance of cash income and expenses of the population and on the basis of the State Bank's cash plan. With the help of these plans, the problem of balancing the money and commodity supply, the issue of the size of emissions, and the withdrawal of money from circulation were solved. The issue was of a directive nature. With the transition to market relations, emission plans ceased to be prescriptive. Forecasting the balance of cash income and expenses helps the Central Bank of the Russian Federation more fully take into account the demand of the population and predict the structure of consumer demand. If the income of the population exceeds expenses in the balance sheet, this means that the money supply in the hands of the population is increasing. In this case, cash issuance is required for customer service.
The main items of income of the population in this balance sheet: wages, pensions, benefits, scholarships, income from property and entrepreneurial activity. Today, the relationship between wages and property income has changed. Wages account for less than 50% of the population's income.
Expenses of the population - purchase of goods and services (2/3), obligatory payments and deposits (10%), purchase of currency (20%). The increase in the population's money has sharply decreased, as have savings in securities and deposits. Since 1991, cash turnover forecasts have been compiled in Russia, which are based on reliability and reality in determining changes in the cash supply in circulation. They are needed to determine the need for cash in Russia as a whole, by region and by bank. Forecasts of cash turnover reflect the volume and sources of cash inflows to banks, the size and direction of their issuance and, ultimately, the issue or withdrawal of money. Calculations are prepared by banks quarterly, distributed by month, and sent to the RCC of the Central Bank of the Russian Federation two weeks before the start of the quarter. Three days before the start of the quarter, the RCC of the Central Bank of the Russian Federation reports estimated data on turnover in the region as a whole for the receipt and disbursement of cash to banks.
The revenue side of cash turnover calculations reflects: trade revenue, revenue from transport enterprises, revenue from consumer services and entertainment enterprises, rent and utility bills, receipts to the accounts of agricultural enterprises, revenue from the sale of currency, revenue from communications enterprises, income from the sale of securities. The expenditure side reflects: wages, pensions, benefits, the issuance of funds for the purchase of agricultural products, and business expenses.
Currently, the Central Bank of the Russian Federation is moving to market forecasting methods related to establishing the volume of refinancing, changing interest rates, using required reserve norms, and using monetary aggregate calculations. Open market operations of the Central Bank of the Russian Federation are increasingly becoming the main method of regulation. In this case, a comprehensive system for regulating cash flow is used.
The issue of money involves ensuring the money supply from the following sources:
- commercial bank lending:
- state lending:
- increase in gold and foreign exchange reserves.
In the first case, the issue is secured by bills and others, in the second - by government bonds and obligations, in the third - it does not require collateral, since gold and currency are collateral.
The assets of the Central Bank of the Russian Federation serve as support for the issue of banknotes, while the Bank of Russia determines the procedure for conducting cash transactions, establishes rules for the transportation, storage, and collection of money, forms a mechanism for creating reserve funds of banknotes and coins, and determines the procedure for replacing and destroying damaged money. The functions of cash regulation of the money supply are assigned to the RCC of the Central Bank of the Russian Federation, which are organized at the main territorial departments of the Bank of Russia, where reserve funds of banknotes and coins are created. They are necessary to ensure emission, regulate the banknote structure of the money supply, replace damaged banknotes and save transportation costs.
In addition, the RCC of the Central Bank of the Russian Federation has created circulating cash desks that accept and issue money during the operating day. The balance of money in the cash register is limited, the surplus is transferred to the reserve fund. Cash services for commercial banks are provided on a contractual basis. The issuance of money, the acceptance of excess money, and cash services are carried out with the reflection of all transactions on correspondent accounts of banks and other legal entities.
Issue of cash is the release of money into circulation, which increases the amount of cash in circulation. The size of emissions in a command economy was strictly regulated by the state; in a market economy, there is a method for forecasting emissions. Issue operations (operations for the release and withdrawal of money from circulation) are carried out by:
- the central bank (bank of issue), which enjoys the monopoly right to issue bank notes (banknotes), which make up the vast majority of cash circulation;
- the treasury (state executive body), which issues small-denominated banknotes (treasury notes and coins made from cheap types of metal, which in developed countries account for about 10% of the total issue of cash).
The state is taking measures to regulate the production process, using the credit and monetary systems to weaken possible cyclical fluctuations in economic processes. In many countries, under the influence of increasing inflation, such a method of stabilizing the economy was used as targeting— establishing targets for regulating the growth of money supply in circulation and credit, which were to guide central banks. Since monetary circulation is influenced by various economic factors, and not only depends on the increase in the amount of money supply, many countries have now abandoned targeting monetary aggregates. In essence, targeting is the establishment of direct restrictions on changes in the volume of money supply. An important point that influences the effectiveness of regulating the dynamics of the money supply using targets is the order in which the latter are established: in the form of control figures (France), deposits (USA), forecasts (Japan).
Organization of cash flow
Let's look at the organization of cash flow using the example of the Russian Federation.
In Russia, cash circulation is regulated by the “Regulations on the rules for organizing cash circulation on the territory of the Russian Federation”, approved by the Bank of Russia - the Central Bank of the Russian Federation (CBRF). The provision is mandatory for implementation by territorial institutions of the Central Bank of the Russian Federation, cash settlement centers (RCCs), credit institutions and their branches, including institutions of the Savings Bank of the Russian Federation, as well as organizations, enterprises and institutions (hereinafter referred to as enterprises) on the territory of the Russian Federation.
According to the regulation, all enterprises, regardless of their organizational and legal form, store available funds in bank institutions in appropriate accounts on contractual terms.
Cash received at the cash desks of enterprises is subject to delivery to banking institutions for subsequent crediting to the accounts of these enterprises.
Cash will be handed over by enterprises directly to the cash desks of bank institutions or through joint cash desks at enterprises, as well as by enterprises of the State Committee of the Russian Federation for Communications and Informatization (Goskomsvyaz of Russia) for transfer to the appropriate accounts at bank institutions.
Acceptance of cash by banking institutions from serviced enterprises is carried out in the manner established by the “Regulations on the procedure for conducting cash transactions and the rules for storage, transportation and collection of banknotes and coins of the Bank of Russia in credit institutions on the territory of the Russian Federation” (as amended by the instructions of the Central Bank of the Russian Federation dated February 27 2010 No. 2405-U). The procedure and terms for depositing cash are established by bank service institutions for each enterprise in agreement with their managers based on the need to accelerate the turnover of money and timely receipt of it at the cash desks during the working days of bank institutions. The deadlines for the delivery of cash by enterprises are expected, as a rule, to be daily.
Cash accepted from individuals for the payment of taxes, insurance and other fees is handed over by the administrations and collectors of these payments directly to banking institutions or by transfer through enterprises of the State Committee for Communications of Russia.
Cash limits kept in the cash registers of enterprises on a daily basis are established by the banks servicing them in agreement with the heads of these enterprises. At the same time, the specifics of the enterprise’s activities are taken into account. The cash limit, as directed by the bank, can ensure the normal operation of the enterprise from the morning of the next day, the limit can be determined within the limits of the average daily cash revenue, etc. Banks issue cash to enterprises, as a rule, at the expense of current cash receipts at the cash desks of credit institutions.
Cash in credit institutions serviced by cash settlement centers (CCS) is regulated in a similar way.
To ensure the timely issuance of cash by credit institutions from the accounts of enterprises, as well as from accounts on deposits of citizens, territorial branches of the Bank of Russia or on their instructions, the RCCs establish for each credit institution and their branches the amount of the minimum allowable cash balance in the operating cash desk at the end of the day.
The establishment of limits on the working cash registers of cash settlement centers and their reinforcement are carried out in accordance with the “Instructions for issuing and cash work in institutions of the Bank of Russia” as amended. instructions of the Central Bank of the Russian Federation dated February 27, 2010 No. 2405-U.
Let's consider the scheme of cash turnover in the Russian Federation (Fig. 2.1).
Rice. 2.1. Scheme of cash flow in Russia
The main links of cash circulation
The initial impulse that triggers the cash flow mechanism is the corresponding directive of the Central Bank of the Russian Federation to cash settlement centers. According to it, cash is transferred from their reserve funds to the working cash registers of the RCC. And thus they go into circulation. From the working cash desks of the RCC, cash is sent to the operating cash desks of credit institutions (commercial banks). Some of this money serves interbank settlements, some is sent as loans to other banks, but most of the cash is issued to legal entities and individuals serviced by this commercial bank.
Part of the cash in the cash registers of organizations, enterprises, institutions is used for settlements between them, but the majority is transferred to the population in the form of cash income (salaries, pensions, benefits, etc.).
The population uses cash for mutual settlements, but most of it is spent on paying taxes, rent and utility bills, purchasing goods and paying for services, paying insurance, rent payments, etc.
Accordingly, money from the population goes either to the cash desks of trade enterprises, the State Committee for Communications of Russia, as well as enterprises providing services to the population, or directly to the operating cash desks of commercial banks.
Forecasting and assessing the state of cash flow
To determine the volume, sources of cash receipts at the cash desks of banking institutions and the directions of their issuance, as well as their release or withdrawal from circulation in regions, territories, republics and the Russian Federation as a whole, a forecast of cash turnover for each quarter is compiled.
To determine the need for cash, forecast calculations are made of the expected receipts in their cash registers and cash disbursements based on the time series of the “Report on Cash Turnovers of Bank of Russia Institutions and Credit Institutions” or on the basis of cash requests from serviced enterprises.
Calculations of expected cash receipts at the cash desks of credit institutions (commercial banks) and their disbursements are compiled quarterly, distributed by month. The results of cash receipts and expenses are reported to the RCC, in which the correspondent account of the credit institution is opened, 14 days before the start of the forecast quarter.
Cash settlement centers make forecasts of cash turnover in terms of receipts, expenses and emission results in general for the credit institutions they serve based on an analysis of cash turnover passing through their cash desks and corresponding messages from credit institutions. Calculations are carried out quarterly with distribution by month and 7 days before the new quarter are reported to the territorial branch of the Bank of Russia. This is necessary for predictive calculations of the size and, if necessary, the issue of money in order to reinforce the working cash registers of the RCC.
To determine expected changes in the cash supply in circulation and the needs of enterprises for cash, territorial branches of the Bank of Russia draw up forecasts of cash turnover for the region, territory, and republic according to the sources of cash receipts at the cash desks of bank institutions and the directions of their issuance for the coming quarter. This work is carried out on the basis of an assessment of the prospects for the socio-economic development of the region, reporting data on cash turnover for previous periods, as well as information received from the RCC and banks on the projected cash turnover and emission result.
The territorial branches of the Bank of Russia take into account the predicted results of the issue of money when developing measures to organize cash circulation in the region, as well as when drawing up plans for the delivery of cash to the reserve funds of cash settlement centers.
Regional branches of the Bank of Russia analyze the state of cash circulation in the regions on a quarterly basis.
The objects of analysis are: emerging trends in cash turnover and its structure; sources of cash receipts at the cash desks of bank institutions and directions for their withdrawal from the cash desks of bank institutions; speed of cash return to the cash desks of bank institutions; ongoing changes and trends in the economy; changes in the consumer price index; the state and development of non-cash payments between legal entities and individuals; the level of collection of cash proceeds (especially trade) generated in the consumer market. The territorial distribution of the issue of money in circulation, the reasons for the increase in the issue (reduction in withdrawal) of cash are studied; unused opportunities for bank institutions to mobilize internal cash resources to meet the cash needs of enterprises; results of banking control over enterprises’ compliance with the procedure for conducting cash transactions and working with cash; ongoing changes in the directions of use of cash income of the population and the sources of their formation; the state of spending by legal entities on wages and social payments; reasons for the formation of overdue debts for the payment of funds for wages and pensions.