They don't pull their pockets: Russians have a record amount of cash
According to the Bank of Russia, in May, the volume of cash in circulation increased by 381.2 billion rubles. The high demand for the "cache" remains for the third month in a row. Overall, the figure has increased by 1.09 trillion since the beginning of the year. There was a greater increase only at the height of the COVID-19 pandemic. What this trend means, how banks react to it, and how the increased demand for "live" money affects the economy can be found in the Izvestia article.
A record high
According to the Central Bank, the demand for cash has been growing for the third month in a row, and the dynamics is impressive: in April — plus 678.7 billion rubles, in March — plus 301.1 billion rubles.
Since the beginning of the year, the amount of paper money in circulation has increased by 1.09 trillion rubles. This volume is comparable only with the "covid" year 2020. Then, in the first five months of the year, Russians took 1.39 trillion rubles from banks.
According to the Central Bank, the main reasons for the surge in interest in paper money are the desire to stock up "just in case" (including due to the shutdown of the mobile Internet), as well as the adaptation of businesses to tax changes.
Restrictions and taxes
Experts also consider regular communication outages to be one of the key reasons for this dynamic. In some regions, consumers no longer have the confidence they once had that they would be able to pay with a card at a store, transport, or gas station, and all hope is for cash in their wallets.
Among those who switched to paper money due to various restrictions, 54% are afraid of problems with payment via terminals and QR codes, 27% are worried about the possible unavailability of banking applications and transfers, analysts of the financial marketplace <url> found out.
The increased tax pressure on businesses is also having an impact. Since 2026, bank acquiring services are subject to VAT at a rate of 22%, which means accepting non-cash payments has become more expensive.
"Convenience stores, bakeries, coffee shops, and cafes are now more willing to accept cash payments and often warn customers that they will not be able to pay with a card. In fact, the business is partially moving into the gray zone, trying to "optimize" the tax burden," adds Larisa Guseva, head of content analytics at <url>.
Enhanced checks
In addition, the requirements for money transfers have become noticeably stricter in Russia, and transactions are being intensively monitored.
As Anatoly Vozhov, Deputy Chairman of the Management Board of PJSC RosDorBank, explains, the new limits and expanded requirements for verifying large transfers make non-cash transactions more difficult, so people and companies transfer part of the transactions to the "cache". In addition, banks have tightened the requirements for confirming the source of funds: it is easier to use cash for large payments than to undergo additional verification in the banking system.
The blocking of transfers and cards within the framework of the current "Anti-fraud 1.0" has become more frequent. People are afraid to end up with money blocked on their card due to an "incorrect" transaction. Therefore, the number of those who withdraw cash reserves from the card in advance in such a case has increased, Larisa Guseva adds.
Uncertainty and inflation
In general, during periods of uncertainty, the demand for cash is always growing. In Russia, this factor has increased since 2022. Since then, the geopolitical and sanctions risks have not gone away.
The money in the "pot" does not depend on the solvency of the bank, the operability of payment gateways or the decisions of foreign regulators. The population is switching to a defensive strategy: keeping money with you is reliable.
Sentiment is also influenced by high inflation expectations: it is better to spend money faster on durable goods, real estate, "before it gets more expensive."
Finally, seasonality is also superimposed: The demand for cash during holidays, vacations and trips is growing.
So, according to <url>, almost half (44%) of Russians withdrew cash in advance for everyday expenses for the May holidays in 2026. Another third (31%) combined cash and bank cards, depending on the situation. And only 18% did not change their financial habits: they continued to use mostly non-cash payments.
Impact on the economy
The growing share of cash in circulation directly affects the liquidity structure of the banking system. For them, the money of the population is a source for financing loans. And they flow from bank accounts to wallets and safes.
"Every ruble withdrawn from the banking system stops working as a basis for issuing new loans. Cash does not bring income to the owner, does not participate in investment turnover, increases the cost of collection and storage, while simultaneously expanding the space for shadow operations," says Nadezhda Kapustina, professor at the Financial University under the Government of the Russian Federation.
Credit institutions, of course, are interested in keeping money in accounts and deposits: competition for liabilities in such conditions may worsen.
Perhaps banks will try to compensate for the "drawdown" of non-cash in their balance sheets. Most likely, they will have to be generous with a small increase in deposit rates. That is, literally paying depositors a little more so that they place money on deposits and savings accounts, Larisa Guseva suggests.
On the other hand, people not only save, but also continue to spend a significant portion of their funds, changing one form of payment to another. Putting money into direct circulation is a plus for economic growth. By the way, the process is faster in conditions of increased inflation.
"When prices rise throughout the economy, citizens and businesses need more rubles to purchase the same goods and services. If the average consumer basket becomes more expensive due to inflation, then additional cash is required," says Evgeny Sumarokov, Associate Professor at the Department of International Business at the Financial University.
Interestingly, the surge in interest in cash does not interfere with the long-term trend of digitalization of payments. The share of non-cash payments remains consistently high. According to the Central Bank, it has grown to 88.9% in retail trade since the beginning of the year and, according to the regulator's forecasts, it may reach 90% by the end of 2026 or early next year.
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