As per RBC’s report citing data from the Central Bank of the Russian Federation, the cash withdrawal volume in Russia reached a record 33.3 trillion rubles by the end of 2023, showing a 13% increase from the previous year.
In 2023, individuals withdrew 33.3 trillion rubles from their cards according to the regulator. Cash withdrawals in Russia saw earlier growth – increasing by 6% in 2022, and 5% in 2021. Notably, in the last year, there was heightened activity in cash withdrawals during the fourth quarter with 9.2 trillion rubles being pulled out.
Card-based money transfers increased by 8% last year to 79.3 trillion rubles. The Central Bank representative attributed this upward trend to the surge in similar operations within the Fast Payment System (SBP), through which transfers can be made using a phone number. In 2023, Russians transferred approximately 27.7 trillion rubles via the SBP, doubling the 2022 figure.
The surge in cash within the Russian community reached nearly 2 trillion rubles
Economy
Ekaterina Semerikova, a prominent researcher at the blockchain and fintech laboratory at the Skolkovo School of Management, explained to the publication that people tend to withdraw cash in times of uncertainty and when relying on social payments. Additionally, cash is frequently preferred for foreign trips due to potential issues with Russian cards functioning abroad.
In October 2023, RBC reported, based on Central Bank data, a decrease in the amount of cash among the population in September, unconnected to seasonal fluctuations. The total cash in circulation by the end of September showed a decrease of 21.6 billion rubles.
The 2022 cash withdrawal surges were linked to events in Ukraine. Notably, on February 25, 2022, cash volumes increased by 1.41 trillion rubles, and on September 22 and 23, 2022, following the announcement of partial mobilization in Russia, it surged by 246.3 billion rubles. Most of these funds are eventually returned to banks when there are no new reasons prompting unforeseen expenses. For example, there was a partial return of cash in March amid increased deposit rates.
In May 2023, Deputy Chairman of the Central Bank Alexey Zabotkin highlighted the rise in cash demand since the final quarter of 2022, extending into 2023. He noted that this trend stemmed from the discontinuation of cash hryvnia circulation in various Russian regions starting from January 1, with all payments switching to cash rubles.