Photo: vovidzha / Shutterstock
Analysts attribute the rise in demand for cash to several factors. One of the main reasons is the regular outages of mobile internet, which cause disruptions in cashless payments for residents and businesses. Against this backdrop, many Russians have once again started carrying cash and keeping a cash reserve at home.
The vacation season has also bolstered demand. Travel expenses traditionally increase in the summer, and with them, the need for cash.
Changes in taxation are cited as another factor. As Euronews notes, starting in 2026, acquiring services will be subject to a 22% VAT rate, which has made accepting non-cash payments more expensive for businesses. As a result, some small companies have started relying more on cash.
At the same time, the strain on the banking system is increasing. The BBC Russian Service, citing market participants, reports that Russian banks have faced their most severe shortage of liquid funds since the end of 2025. According to Sberbank’s estimates, by the end of 2026, the flow of funds into cash circulation could reach ₽3.8 trillion (about €42.6 billion).
The decline in account balances is forcing banks to compete more aggressively for customers’ money. Despite the cut in the key interest rate, some major credit institutions have already raised yields on short-term deposits in an effort to replenish liquidity more quickly.
As independent financial expert Andrei Barkhota noted to the BBC, the monthly increase in cash could rise to ₽650–700 billion (€7.3–7.9 billion) this fall. According to him, some of this money may flow abroad after certain banks in EAEU countries began tightening the conditions for depositing ruble cash starting in June.
The Bank of Russia previously stated that, despite the spread of non-cash payment methods, cash remains in demand among citizens and businesses, and ensuring its availability remains one of the regulator’s priorities.
Follow our updates
