Many Ukrainians face situations where banks refuse to accept or exchange old foreign currency. This raises questions about the legality of such actions by financial institutions and their compliance with current legislation.
This is reported by Finway
Circulation and exchange of old dollars: legislative requirements
The issue of foreign currency circulation in Ukraine is regulated by the laws “On Currency and Currency Transactions”, “On Banks and Banking Activities”, as well as regulations of the National Bank of Ukraine. As noted by lawyer Alina Kulava from the law firm “De-Jure”, back in 2023, the National Bank of Ukraine clearly defined its position regarding the acceptance of old banknotes.
“The National Bank has not established any restrictions regarding the year of issue of foreign currency banknotes or their denomination. On the contrary, banks and financial institutions are prohibited from imposing any such restrictions,” emphasizes the expert.
This norm is directly enshrined in the relevant provisions of the National Bank of Ukraine. According to these documents, banks and non-bank institutions are prohibited from refusing to accept foreign currency based on the year of issue or denomination, provided that the banknotes are genuine and correspond to official samples.
Accordingly, any refusal to accept currency solely due to its “old” year of issue is illegal. Clients have the right to demand the exchange of such banknotes or, if necessary, to complain about the bank’s actions.
Damaged and worn-out banknotes: when is the collection procedure applied
It is important to highlight situations where banknotes are not only old but also significantly damaged or worn out. In such cases, banks have the right to use a special procedure — collection. According to the expert, banknotes with defects such as: torn or cut parts, damaged design elements, color changes, heavy soiling, burning, or other damage caused by moisture or chemical substances can be accepted for collection.
Collection is a paid banking service where the bank sends the damaged currency to a foreign financial institution for verification of its authenticity and subsequent reimbursement. Banks and non-bank financial institutions determine the commission for such operations in their own tariffs — usually up to 20% of the amount.
It is important for clients to have access to open information about the payment timelines and conditions for conducting collection operations.
What to do if the bank refuses without justification
In the case of an unjustified refusal to accept old banknotes, lawyers advise documenting such an incident, preferably in writing, stating the reason. Next, it is advisable to contact the bank’s management with an official statement. If there is no response, the client has the right to file a complaint with the National Bank of Ukraine. The key criterion for exchanging foreign currency is the authenticity and condition of the banknote, not its year of issue or denomination. Any other restrictions imposed by financial institutions violate current legislation.
Thus, Ukrainian banks are obliged to accept foreign currency regardless of the year of issue, provided that the banknotes are genuine. Refusal is only possible in cases of significant wear or damage, when the collection procedure is applied.