42B On Guarantees for Uninterrupted Provision of Cash Payments from Deposit Accounts in Banks

Document lost force 18.10.2021

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.05.00 Bank Deposits and Other Deposit Operations; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.20.00 Fund Operations. Cash Issuance by Bank] [ TSZ: 1. Finance / Banks and Other Credit Institutions. Loans]

Resolution of the President of the Republic of Uzbekistan

ON GUARANTEES FOR UNINTERRUPTED PROVISION OF CASH PAYMENTS FROM DEPOSIT ACCOUNTS IN BANKS

LexUZ Note This Resolution lost force based on the Decree PF-6325 of the President of the Republic of Uzbekistan dated October 18, 2021 "On Deeming Certain Documents of the President of the Republic of Uzbekistan and the Government of the Republic of Uzbekistan to Have Lost Force".

Let it be considered that commercial banks and their branches, attracting funds of the population and economic entities into deposits, putting them into circulation and thereby earning bank income, actually profiting at the expense of depositors, while at the same time not clearly fulfilling their direct obligations to their depositors, indifferent to their legal demands and needs, and moreover, abusing their position when fulfilling depositors' orders, disregarding their interests, are absolutely unacceptable situations.

Similar situations exist in the activities of the regional and city departments of the Central Bank of the Republic of Uzbekistan and the National Bank of Foreign Economic Activity.

It should be borne in mind that such relations undermine trust in banks, cause justified dissatisfaction among depositors, limit the placement of free funds of the population, entrepreneurs and businessmen, economic entities into deposits in commercial banks, does not encourage their attraction, does not help reduce cash circulation outside the bank, destabilizes the entire monetary system and causes great economic damage to the country.

In order to completely eliminate the indicated shortcomings, further strengthen cash circulation, reduce cash circulation outside the bank, ensure uninterrupted issuance of cash by banks from deposit accounts of economic entities:

1. Let the work carried out on encouraging the attraction of free funds of the population and economic entities to deposit accounts in banks by commercial banks and ensuring unrestricted issuance of cash from their accounts on first demand be deemed unsatisfactory.

Let the Central Bank of the Republic of Uzbekistan widely use all influence mechanisms and means granted to it by law and existing normative legal documents to eliminate cases of bureaucracy, red tape, indifference and greed among commercial bank employees in a very short period.

2. Let the Central Bank of the Republic of Uzbekistan, commercial banks take necessary measures to review the procedure for issuing funds available in deposit accounts in banks and the current regulation in order to ensure uninterrupted issuance of cash to the population, economic entities, individuals and legal entities upon their request by September 1, 2005.

Let uninterrupted issuance of cash from deposit accounts to the population and economic entities be considered one of the most important criteria for assessing the effectiveness and reliability of their activity when summarizing the quarterly, semi-annual and annual results of commercial banks.

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.19.00 Liability for Violation of Legislative Documents on Banks and Banking Activity]

3. Let the proposals of the Central Bank of the Republic of Uzbekistan and commercial banks be accepted that when reviewing work results, if the established procedure for timely payment of cash from bank deposit accounts to the population and economic entities is violated several times (more than three times a month), the heads of territorial departments and branches of commercial banks should be dismissed from their positions.

Let the Regulation on the Procedure for Incentivizing and Increasing Responsibility of Heads and Officials of Commercial Banks to Ensure Uninterrupted Provision of Cash Funds be approved in accordance with the Appendix*.

• The appendix is provided in the Russian language text.

4. Let the Central Bank of the Republic of Uzbekistan apply strict liability measures against commercial banks, up to measures to revoke the license granting the right to carry out banking operations, in cases of regular delays in issuing cash funds.

5. In order to ensure uninterrupted payment of cash:

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.02.00 Commercial Banks. Private Banks. Foreign Banks]

let commercial banks create a cash reserve in their divisions that ensures the demand for cash funds is promptly met and customer orders are fulfilled;

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.01.00 Central Bank, Its Structural Departments and Institutions]

let the Central Bank of the Republic of Uzbekistan organize regional reserve funds of cash.

6. Let the Central Bank of the Republic of Uzbekistan:

ensure commercial banks with cash funds in unlimited amounts within the limits of their funds in representative accounts in the Central Bank of the Republic of Uzbekistan based on orders of their branches, including at the expense of reserve funds and circulating cash funds in accounting and cash centers;

carry out work on redistribution of cash between regions of the republic, providing for uninterrupted provision of demand for cash.

(Paragraph 6 in the edition of Decree PF-5684 of the President of the Republic of Uzbekistan dated March 6, 2019 — National Database of Legislative Documents, 06.03.2019, No. 06/19/5684/2708) See previous edition.

(Paragraph 7 lost force based on Decree PF-5684 of the President of the Republic of Uzbekistan dated March 6, 2019 — National Database of Legislative Documents, 06.03.2019, No. 06/19/5684/2708)

8. Let the Central Bank of the Republic of Uzbekistan summarize quarterly the state of work on ensuring unconditional and unrestricted payment of cash from deposit accounts of the population and economic entities and inform the Administration of the President of the Republic of Uzbekistan.

(Paragraph 8 in the edition of Decree PF-5650 of the President of the Republic of Uzbekistan dated February 1, 2019)

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.09.00.00 Tax Legislation / 07.09.02.00 Management in the Field of Taxation]

9. Let the State Tax Committee of the Republic of Uzbekistan:

strengthen control over the implementation of decisions adopted to limit non-bank circulation, full submission of cash proceeds from the sale of goods, works and services by economic entities to bank cash desks;

establish strict control over the proportionality between cash-trade proceeds submitted to bank cash desks and the actual volumes of retail commodity turnover and monetary services, as well as the mandatory use of control-cash machines and payment terminals by enterprises in the field of retail trade and services. In cases where facts of unlawful refusal to accept payment using plastic cards are detected, liability measures shall be applied against guilty persons in accordance with legislative documents.

10. Let the Ministry of Justice of the Republic of Uzbekistan within one month jointly with the Central Bank and other interested ministries and departments:

submit proposals to the Cabinet of Ministers on changes and additions to current laws in connection with the adoption of this resolution;

ensure alignment of departmental normative legal documents with the provisions of this resolution.

11. Let control over the execution of this resolution be assigned to the Prime Minister of the Republic of Uzbekistan Sh.M. Mirziyoyev and the Chairman of the Central Bank of the Republic of Uzbekistan F.M. Mullajanov.

President of the Republic of Uzbekistan I. KARIMOV

Tashkent,

August 5, 2005,

PQ-147

(Collection of Legislation of the Republic of Uzbekistan, 2005, No. 30-31, Art. 227; National Database of Legislative Documents, 10.01.2018, No. 06/18/5296/0534; 06.03.2019, No. 06/19/5684/2708)