Legal regulation of money circulation in the Russian Federation is carried out on the basis of the Russian Federation, Federal Law, acts of the President of the Russian Federation, the Government of the Russian Federation, the Central Bank of the Russian Federation, the Federal Customs Service, international agreements and treaties of the Russian Federation.
The monetary unit in the Russian Federation is the ruble (Article 75 of the CRF). The introduction and issue of other money in the Russian Federation is not allowed. Protecting and ensuring the stability of the ruble is the main function of the Central Bank of the Russian Federation, which it carries out independently of other bodies.
The regulation of monetary circulation can be influenced by the State Duma, the Federation Council and the Government of the Russian Federation, which is entrusted with the implementation of a unified financial, credit and monetary policy (Article 114 of the Russian Federation).
Money circulation (cash turnover)– cash turnover is a part of money turnover equal to the sum of all cash payments made in cash (banknotes and coins) for a certain period of time, reflecting the movement of cash as a means of circulation and a means of payment.
The issue of money is enshrined as the exclusive prerogative of the Bank of Russia (KRF and the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”) - Russian rubles are banknotes.
Emission– issuance of money leading to an increase in the money supply. If the Central Bank of the Russian Federation, through its institutions, issues new banknotes into circulation in exchange for old ones, this is the issue of cash (issuance of cash banknotes or coins into circulation in replacement of old ones or withdrawal of cash within the credit balances of credit institutions’ accounts with the Bank of Russia). If the Central Bank of the Russian Federation issues cash in the manner prescribed by law, within the limits of credit balances on client accounts, this may increase the amount of cash in circulation (but such an operation leads to an equivalent decrease in the credit balance on the account of the corresponding client (non-cash money) - the money supply does not changes.
Withdrawal of money from circulation is carried out when credit institutions deliver cash to institutions of the Central Bank of the Russian Federation.
The Board of Directors of the Central Bank of the Russian Federation makes a decision on release of new banknotes and coins into circulation, on the withdrawal of old ones, approves the denominations and samples of new banknotes. The Central Bank of the Russian Federation is entrusted with the function of forecasting changes in money supply indicators (quantitative indicators of cash and non-cash monetary forms).
Exchange. Banknotes and coins of the Bank of Russia cannot be declared invalid (no longer valid as a legal means of payment) unless a sufficiently long period for their exchange for banknotes and coins of a new type is established (Article 31-34 of the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”). Any restrictions on the amounts or subjects of exchange are not allowed. When exchanging banknotes and coins of the Bank of Russia for banknotes of a new type, the period for withdrawing banknotes and coins from circulation cannot be less than 1 year, but does not exceed 5 years.
The Bank of Russia exchanges old and damaged banknotes without restrictions. The Board of Directors of the Central Bank of the Russian Federation makes decisions on the release of new banknotes and coins into circulation and the withdrawal of old ones, approves the denominations and samples of new banknotes. Descriptions of new banknotes are published in the media. The decision on these issues, as preliminary information, is sent to the Government of the Russian Federation.
Main payments prevailing among cash payments:
1) settlements between the population and trade and service enterprises, public catering;
2) wages paid to employees, payment of other monetary income and compensation;
3) depositing money by the population into accounts with credit institutions and (or) withdrawing cash from accounts;
4) payment of pensions, benefits, scholarships, insurance payments;
5) issuance of loans by credit institutions to the population;
6) payment of securities to individuals and payment of income on them;
7) payments by individuals for utilities and other services;
8) payment of taxes to the budget by individuals, payment of fines.
Settlements involving individuals that are not related to their business activities are made in cash without restrictions or in non-cash form (Article 861 of the Civil Code of the Russian Federation). Other payments must be made by bank transfer.
Organization of money circulation entrusted to the Central Bank of the Russian Federation, the principles of organizing cash circulation are set out in the Decree of the President of the Russian Federation “On additional measures to limit cash circulation” (the corresponding norms are set out in the Regulations of the Central Bank of the Russian Federation “On the rules for organizing cash circulation on the territory of the Russian Federation.”
Ticket number 25
Federal Treasury: concept, tasks, functions, powers.
Federal Treasury of the Russian Federation (FC RF):
Decree of the Government of the Russian Federation “On the Federal Treasury” dated December 1, 2004
FC (Treasury of Russia)– a federal executive body (federal service) that carries out law enforcement functions in accordance with the legislation of the Russian Federation Ensuring the execution of the federal budget, cash services for the execution of budgets of the budget system of the Russian Federation, preliminary and current control over the conduct of operations with federal funds budget by the main managers, administrators and recipients of federal funds. budget.
The Federal Code of the Russian Federation is under the jurisdiction of the Ministry of Finance of the Russian Federation. Its Tasks and Functions:
· maintains records of transactions related to cash execution of the federation. budget;
· opens accounts with the Central Bank and credit institutions to account for federal funds. budget and other funds; establishes regimes for federal budget accounts;
· opens and maintains personal accounts of the main managers, administrators and recipients of federal budget funds;
· maintains a consolidated register of the main managers, managers and recipients of federal funds. budget;
· keeps records of the indicators of the consolidated budget list of the federation. budget, limits on budget obligations and their changes;
· compiles and submits to the Ministry of Finance operational information and reports on the execution of federal regulations. budget, reporting on the execution of the consolidated budget of the Russian Federation;
· distributes income from federal payments. taxes and fees between the budgets of the budget system of the Russian Federation;
· carries out preliminary and current control over the conduct of transactions with federal funds. budget;
· ensures timely and complete consideration of citizens' appeals, making decisions on them and sending responses to applicants;
Powers of the FC RF:
· request and receive, in the prescribed manner, information necessary for making decisions on issues within the established scope of activity;
· provide legal entities and individuals with explanations on issues related to the established field of activity;
· organize the necessary examinations, analyzes and assessments, as well as scientific research in the established field of activity;
· create, reorganize and liquidate territorial bodies of the Financial Corporation in agreement with the Minister of Finance of the Russian Federation;
· apply restrictive, precautionary and prophylactic measures provided for by the legislation of the Russian Federation, aimed at preventing and (or) suppressing violations of legal rights. persons and citizens of mandatory requirements in the established field of activity, as well as measures to eliminate the consequences of these violations;
Treasury bodies are legal entities, endowed with special legal personality to participate in civil circulation.
The Federal Treasury is subordinate to the Minister of Finance of the Russian Federation, who, in accordance with the Regulations on the Ministry of Finance of the Russian Federation, manages the activities of the Federal Treasury. Treasury bodies report to the head of the Main Directorate of the Federal Treasury of the Ministry of Finance of the Russian Federation.
Treasury bodies interact with government bodies of the constituent entities of the Russian Federation in the process of crediting income and mutual settlements between budgets. The Federal Treasury informs the legislative and executive bodies of state power of the Russian Federation about the results of execution of the federal budget. Treasury authorities carry out control functions in cooperation with executive authorities, tax and law enforcement authorities and credit organizations. In certain cases, treasury authorities file claims in court and in arbitration court.
Cash circulation is a process of continuous movement of cash banknotes in the sphere of circulation and their performance of the functions of a means of payment and a means of circulation.
Cash circulation is organized on the basis of the following principles:
1) all enterprises must keep cash, with the exception of the established limit, in commercial banks;
2) banks set cash balance limits for enterprises;
3) cash circulation is the object of forecast planning;
4) money circulation is managed centrally;
5) the organization of cash circulation is aimed at ensuring the stability, elasticity and economy of money circulation;
6) enterprises can receive cash only from the banks that serve them.
The procedure for carrying out cash circulation on the territory of the Russian Federation is regulated by the Regulations “On the rules for organizing cash circulation on the territory of the Russian Federation.” According to him:
1) cash circulation is carried out using various types of money;
2) the issue and withdrawal of money from circulation is carried out by the Central Bank of the Russian Federation;
3) The Central Bank regulates cash circulation in the Russian Federation;
4) cash payments between legal entities are carried out non-cash, and in some cases cash payments are allowed within the established limits;
5) for legal entities, a limit on the balance of cash in cash registers is established;
6) legal entities are required to hand over all funds in excess of the limits to bank institutions.
Cash circulation begins at the RCC. Cash is transferred from reserve funds to working cash. From the working cash desks, cash is sent to the operating cash desks of commercial banks; most of the cash is issued by the bank to clients - legal entities and individuals. Most of the cash of enterprises 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, rent and utility bills, repaying loans, purchasing goods and paying for various services, rent payments, paying fines, etc.
Money goes either to the operating cash desks of commercial banks or to the cash desks of enterprises. For each enterprise, limits are set for the balance of cash in their cash registers, and all amounts exceeding the limit must be deposited with a commercial bank. For commercial banks, limits are also set for their working cash desks, so in amounts exceeding the limit, they hand over cash to the cash register center. The latter also sets a limit for their working cash, so money in an amount exceeding the limit is transferred to reserve funds.
19. Non-cash money circulation and principles of its organization.
Non-cash turnover- this is the amount of payments for a certain period of time made without the use of cash by transferring funds to customer accounts in credit institutions or mutual settlements. This turnover constitutes a significant part of the country's monetary turnover. Non-cash money circulation is expressed in non-cash payments. Non-cash payments are of great economic importance in accelerating the turnover of funds, reducing cash in circulation, and reducing distribution costs.
Non-cash payments in the economy are organized according to a certain system, which is understood as a set of principles for organizing non-cash payments, the requirements for their organization, determined by specific business conditions, as well as forms and methods of payments and related document flow.
Principles of organizing settlements: 1. Settlements are carried out through bank accounts that are opened for clients for storing and transferring funds. 2. Payments from accounts must be made by banks on the orders of their owners in the established order of payments and within the limits of the account balance. 3. Freedom for market participants to choose forms of non-cash payments and secure them in business contracts, with banks not interfering in contractual relations. 4. The principle of urgency and payment means making payments strictly based on the deadlines provided for in business, credit, insurance contracts, instructions of the Ministry of Finance of the Russian Federation, etc. 5. The principle of security of payment is closely related to the previous one and, in order to comply with the urgency of payment, presupposes that the payer or his guarantor has liquid funds that can be used to pay off obligations to the recipient of funds.
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 are: wages, pensions, benefits, scholarships, income from property and business activities. 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. Cash turnover forecasts 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 bills 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 must be handed over 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 bank 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 the same 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 relevant 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.
Cash flow diagram. Features of the cash circulation process.
Cash turnover is the movement of cash in the process of circulation of goods, provision of services and making various payments. Cash in circulation undergoes constant circulation. They come into circulation from the cash desks of the issuing bank. The amount of cash in circulation is controlled by the state represented by the Bank of Russia and the Ministry of Finance.
Cash circulation- This is the movement of cash, serving mainly retail trade turnover. The means of circulation and payment in this case are real banknotes transferred by one entity to another for goods, works and services or in other cases provided for by law. It is served by banknotes, small change and paper money (treasury notes). In developed capitalist countries, banknotes issued by the central bank make up the overwhelming majority of cash circulation. A small part of the issue of money (about 10%) is accounted for by treasuries, which issue mainly coins and small-denominated banknotes - treasury notes.
Cash turnover countries - this is part of the money turnover, equal to the sum of all payments made in cash for a certain period of time. This turnover is mainly associated with the receipt of cash income of the population and its expenditure.
Cash turnover, which represents a set of payments for a certain period of time, reflects the movement of cash both as a means of circulation and as a means of payment.
Articles 140, 861-885 of the Civil Code of the Russian Federation provide for the use of payments in cash and non-cash forms on the territory of the Russian Federation and reveal the essence and procedure for the implementation of the main forms of non-cash payments.
The scope of use of cash is mainly related to the income and expenses of the population:
· settlements between the population and retail and public catering enterprises;
· remuneration of labor by enterprises and organizations, payment of other monetary income;
· contribution of money by the population to deposits and receipt of deposits;
· payment of pensions, benefits and scholarships, insurance compensation under insurance contracts;
· issuance of consumer loans by credit institutions;
· payment for securities and payment of income on them;
· payments by the population for housing and utilities, when subscribing to periodicals;
· payment of taxes to the budget by the population, etc.
Cash turnover between enterprises is insignificant, because The majority of payments are made non-cash.
It is cash circulation that consists of the constantly repeating circulation of cash (Fig. 1).
Fig.1. Cash flow diagram (using the example of Russia)
The diagram shows that cash circulation begins in the cash settlement centers of the Central Bank of the Russian Federation. Cash is transferred from their reserve funds to the working cash registers, thereby entering into circulation. From the working cash desks of the RCC, cash is sent to the operating cash desks of commercial banks. Part of this money serves interbank settlements, part is sent as loans to other banks, but most of the cash is issued to clients - legal entities and individuals (either to the cash desks of enterprises and organizations, or directly to the population) serviced by this commercial bank.
Part of the cash in the cash registers of enterprises and organizations is used for settlements between them, but most of it is transferred to the population in the form of various types of cash income (salaries, pensions and benefits, scholarships, insurance compensation, payment of dividends, proceeds from the sale of securities and etc.)
The population also uses cash for mutual settlements, but most of it is spent on paying taxes, fees, insurance payments, rent and utility bills, repaying loans, purchasing goods and paying for various paid services, purchasing securities, rent payments, paying fines, penalties and penalties, etc.
Thus, money goes either directly to the operating cash desks of commercial banks, or to the cash desks of enterprises and organizations (primarily trade enterprises and enterprises providing services to the public).
In accordance with the current procedure for organizing cash circulation, limits for the balance of money in their cash registers are established for each enterprise and money exceeding the limit must be surrendered to the commercial bank servicing this enterprise. For commercial banks, limits are also set for their transaction cash desks, so in amounts exceeding the limit, they hand over cash to the cash register center. The latter also sets a limit for their working cash, so money in an amount exceeding the limit is transferred to reserve funds, that is, withdrawn from circulation.
Cash circulation is organized by the state in the form of a central bank. For this purpose, the central bank systematically publishes a document called “The procedure for introducing cash transactions in the national economy.” The last time this document was published in Russia was in September 1993.
Cash circulation 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;
· cash circulation serves as the object of forecast planning;
· money circulation is managed centrally;
· organization of cash circulation aims to ensure stability, elasticity and economy of money circulation;
· Enterprises can receive cash only from the banks that serve them.
On a quarterly basis, territorial institutions of the Central Bank of the Russian Federation analyze the state of cash turnover in the regions. They use the results of the analysis to make forecasts of cash turnover, as well as to develop and implement, together with banking institutions, measures to improve the organization of cash circulation and reduce emissions.
