CC BY
2
UDK 004.02:004.5:004.9
Normamatov I.B. researcher
of Karshi Engineering Economic Institute (KarEEI)
Uzbekistan
REDUCTION OF EXTERNAL BANK CIRCULATION OF CASH AS A COMPULSORY CONDITION IN DEVELOPMENT OF PAYMENT BY
CHEQUE IN COUNTRIES OF CIS
Annotation: External bank circulation of cash in countries of CIS serves as a source of deepening the inflation process so far as the main part ofpopulation's expenditures are paid with cash. At present distrust of economic agents to national bank system, promotes to widening of shady economics and external bank circulation in countries of CIS. Practically there exist some factors, creating unfavorable situation for efficient activities of commercial banks, as a result, these banks are simply becoming obliged to do a low qualitative service for their clients and by this way are losing confidence of the companies.
Today, one of the most actual problems of bank systems in countries of CIS, is that commercial banks are not performing in time the demands of their clients considering about obtaining cash devices.
Keywords: payment order, check, documentary letter of credit, clean collection, documentary collection, liquidity, commercial bank, overdraft, security, priority of payments.
External bank circulation of cash in countries of CIS serves as a source of deepening the inflation process so far as the main part of population's expenditures are paid with cash. At present distrust of economic agents to national bank system, promotes to widening of shady economics and external bank circulation in countries of CIS. Practically there exist some factors, creating unfavorable situation for efficient activities of commercial banks, as a result, these banks are simply becoming obliged to do a low qualitative service for their clients and by this way are losing confidence of the companies.
The results of the study by A. Yurov showed that, firstly, there is a direct relationship between cash circulation and the economy; secondly, improving the organization of cash circulation will lead to a reduction in non-banking cash circulation18.
18 Yurov A.V. Cash circulation during periods of recession and economic recovery // Money and credit. -Moscow. 2011. - No. 1. - pp. 37-45.
According to G. Panova, E. Valetdinova, ensuring the optimal balance between cash and non-cash money is important in reducing the volume of nonbanking cash turnover19.
According to S. Meshchenko, the minimum cash growth was to serve the shadow sector in a stable economic situation and significant economic growth20.
1. Non-observing the principles of bank secrets.
Though in many countries of CIS there exists the Law "About bank secrets" which must guarantee safety of information considering as a bank secret, commercial banks practically can't observe the rule in most cases. Because law-keeping organs (courts, prosecutors' offices) have full access to the information on bank accounts even in conditions such as not having attitude to excitement from criminal action. Besides that, local government bodies and collaborators of tax inspection can also acquire such information without specific efforts. Having information about bank accounts of clients, third persons can entirely use them for unconscientious purposes. Such a practice decreases the stimulus of many enterprises connected to bank and creating favourable climate for the introduction of shady business.
2. Strengthening the role of tax agents in banks.
On the base of existing a number of legislative acts, today commercial banks are obliged to do functions of tax organs. In the presence of clients by debts in budget and external funds, commercial banks in compulsory order transfer monetary devices from accounts of their clients for paying encashment charges of taxation and external budget funds. Such a practice is contrary to confidentiality of the facts of bank clients and by this way undermines the trust to banks.
3. Untimely performing of duties.
Today, one of the most actual problems of bank systems in countries of CIS, is that commercial banks are not performing in time the demands of their clients considering about obtaining cash devices. It is known when in economics of countries there exists still unrealized potential, presence of decreased inflation can stimulate economic growth, and don't' have negative effect to purchasing power of national currencies. However, if the index of inflation begins to grow in high level, say, for example, more than 20 % a year, it is already difficult to control and it tends to acquire chronic forms. As a result of high inflation, population doesn't want to keep their savings in national currencies. Capital is used for purchasing "stable foreign currencies" and by this way the cost of national currency falls. Besides that, purchasing power begins to pass to the state, as well as it will use money, which are edited by central banks. This is inflation tax.
Elaborating effective money-credit and fiscal politics requires the exactness in the price of such key statistic indexes as the volume of output and the level of
19 Panova G.S., Valetdinova E.N. Limitation of cash circulation in the fight against the shadow economy // Vestnik MGIMO. - Moscow, 2014. -№1. - pp. 147
20 Meshchenko S.V. Modeling the influence of the shadow sector of the economy on the need for cash // Scientific and technical statements of St. Petersburg State Polytechnical University - St. Petersburg, 2011. - No. 1. - S.260.
unemployment, and the presence of small size of production in shady economics results in distortion of these facts. It includes facts about activities of shady economics in official statistics of national accounts. Persons, engaging in elaboration and conducting politics, and collaborators of state bodies for making decisions about distributing resources must acquire information about number of persons engaging in shady economics, rapidness of conducting and the scale of this activity.
However, to estimate the scales of shady economics is rather difficult. In certain account, people, engaging in half activities, strive all attempts not to discover. A number of investigations show that tax regime seems to have a great influence to widening the shady economics. In Austria, loading straight taxes (including payments on social securities), have more influence to the growth of shady economics; the next by the level of influence, is the number of normative acts, concerning companies and workers, and also the difficulty of tax systems. This situation can be observed in Scandinavian countries, Germany, and the USA. Measures of state regulating, these such as demanding on license, trade barriers, normative markets of labour and others, can increase the cost of working force for companies in official economics. Employers in official economics, putting main part of additional expenses, connected to these measures of regulating on their workers actively are urging them to pass to shady economics, where can be avoided of these expenses.
State bodies must engage in improving the observance of laws and regulative acts, instead of engaging in increase their quantities. Shady economics, as a rule, have small sizes in countries where strong and effective institutes of state management work. High level of regulating economics with weak and discretional use of laws creates favorable land for shady economics.
As the operation of shady economics is usually conducted in exact form, increase of activeness in this sphere, as a rule, brings to extending of demand for cash and, in turn, to widening external monetary circulation. As a result, monetary bodies will be in difficulty to estimate consumes of economic subjects by cash. At present, the fact is that in the republic more than 60% of money mass consist of cash devices, gives opportunity to suppose about exist of vast number of cash operations of shady business, which in no where is taken into account and don't transfer by bank channels.
Table 1
Specific cash in the structure of the monetary aggregate M2
2016 y. 2017 y. 2018 y.
Japan 7,3 7,3 7,2
Australia 5,3 5,4 5,3
Russian 20,1 19,9 9,8
Uzbekistan 25,2 26,6 27,6
The data presented show that in 2016-2018 in Japan Australia, the specific total cash in the M2 structure was low and stable.
In 2016-2018, in Russia and Uzbekistan, the specific total cash in the M2 structure was high. This is due to the presence of non-banking cash turnover and the underdevelopment of non-cash payments.
To our mind, it is necessary to take these measures, capable to decrease external circulation of cash:
1. Dismissal of commercial banks control functions and denying interference to their operational procedures (refusing to conduct the registration of debtor's and creditor's debts of clients; cancellation of practices performing charges of tax and other inspectorate organs; not to place on commercial banks carrying on forecast indexes by entering cash devices, which also decrease access of bank clients to cash devices and confuse timely conducting their monetary transactions).
2. To provide the liquidity of commercial banks, timely carrying on demands of clients, connected to the access to cash and money transfers.
3. To provide full observation of principles of bank secrets, this provides banks with any information about their clients on exact legislative conditions.
4. Gradually to equalize the heaviness of tax payments for different categories of tax payers, to decrease groundless individual privileges, to strengthen tax laws more than transparency. To provide neutrality of taxes according to inflation, organizational law forms, connected to basic and circulative devices, the period of production circles, to improve co-operation of tax administrations and tax payers. Those who at present pays taxes in time, must observe facilitation of tax press.
5. To decrease tax obligations to fund of salary payments, to decrease the rate of single social tax of enterprises. These measures permit to decrease cost price of production and decrease prices, and also increase s the volume of investments at the expense of private sources.
Bibliography:
1. Decree of the President of the Republic of Uzbekistan dated November 29, 2017 "On the establishment of the Ministry of Innovative Development of the Republic of Uzbekistan" // Collection of Legislation of the Republic of Uzbekistan, December 4, 2017, No. 48, Article 1179
2. Amanov O.A. The Importance Of Digital Technologies In Ensuring Employment [Электронный ресурс] // Экономика и социум.-2020. - № 12 (79) (дата публикации :14.12.2020).-URL: https://a78cf8ac-3ef5-4670-8fcd-a900ec94fdfb.filesusr.com/ugd/b06fdc_274dd51640744059aa540e946f304bdf.p df?index=true (дата обращения: 16.12.2020)
3. Amanov O.A. The main directions of modernization of the rural labor market. Monograph. - Tashkent: "Science and technology", 2014. P.77.
4. Narmamatov Ixtiyar Baxtiyarovich (2020) "Development of Non-Cash Payments: Problems and the Ways to Solve Them", International Journal of
Advanced Science and Technology, 29(9s), pp. 4193 - 4195. Available at: http://sersc.org/journals/index.php/IJAST/article/view/16787 (Accessed: 19 December2020).
5. Amanov O.A. Ways of regulation, condition and employment trends of the population of the republic of Uzbekistan. Journal of Management Value & Ethics. India. ISSN: 2249-9512 Vol 8, №2, 2018.-P.98-106. URL: https://www.imveindia.com/iournal/APRIL-JUNE 18.pdf
