INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 366
ORGANIZATION OF CASH OPERATIONS, COLLECTION OF CASH AND OTHER
VALUABLES AND THEIR ACCOUNTING IN COMMERCIAL BANKS (ON THE
EXAMPLE OF "XALQ BANKI" JSC)
Mardankulova Shirin Kamtar qizi
Banking and Finance Academy of the Republic of Uzbekistan
Abstract:
This article analyzes the organization of cash operations, the collection of cash and
other valuables, and their accounting in commercial banks, using the example of "Xalq Banki"
JSC. Special attention is given to the procedures for handling cash, internal control, safety
protocols, and accounting standards. Recommendations are provided to improve efficiency,
transparency, and risk mitigation in these operations.
Keywords:
cash operations, collection, valuables, commercial bank, accounting, internal
control, Xalq Bank.
Introduction.
In the modern banking system, the proper organization of cash operations is
fundamental to ensuring not only the financial stability of the institution but also enhancing
customer trust and regulatory compliance. Cash operations include the receipt, counting, sorting,
storage, issuance, and transportation of cash and other valuables — all of which are highly
sensitive and require strong internal controls, specialized personnel, and robust infrastructure.
In Uzbekistan, commercial banks process billions of Uzbek soums daily across thousands of
branches, ATMs, and cash deposit terminals. As a result, even minor inefficiencies or lapses in
security can lead to substantial financial losses, regulatory penalties, or reputational damage.
This makes it imperative for banks to implement standardized protocols, continuous monitoring
systems, and digital tools to ensure the safe and efficient handling of physical assets.
One of the most significant challenges in cash management is maintaining real-time visibility
over cash balances at the branch, ATM, and central vault levels. Moreover, the process of cash
collection (cash collection and transport) introduces operational risks such as theft, fraud, and
logistical delays, which need to be mitigated through armored transport, GPS tracking, and dual
verification methods.
"Xalq Banki" JSC, one of the largest retail banks in Uzbekistan, presents a valuable case study
of how modern cash operations are organized. The bank utilizes a combination of legacy
infrastructure and modern innovations, including biometric access systems, real-time
dashboards, and integrated accounting platforms. The institution has also developed specialized
training programs for cashiers and cash collection and transport teams to ensure operational
discipline and service reliability.
In this paper, we examine how "Xalq Banki" JSC organizes and manages its cash-related
processes, drawing insights from both internal performance metrics and external regulatory
frameworks. The study aims to identify best practices and potential areas for improvement to
support future innovation in cash operations across the Uzbek banking sector.
Literature Review.
The organization of cash operations and their accurate accounting have been widely addressed
in both national regulations and international scholarly research. The Central Bank of
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 367
Uzbekistan (CBU) has enacted several comprehensive regulatory documents aimed at
enhancing cash flow transparency, risk mitigation, and internal control efficiency within
commercial banks. Notably, the 2022 instruction titled “Procedure for Managing Cash
Operations and the Cash collection and transport of Valuables” outlines clear responsibilities
for bank staff, secure storage requirements, documentation standards, and maximum daily cash
holding limits by branch.
Furthermore, the CBU has encouraged automation through initiatives aligned with its digital
banking strategy, pushing banks to adopt electronic recordkeeping, integrated vault monitoring
systems, and biometric authentication for access to high-value cash reserves. These measures
reflect a shift toward standardizing operations in accordance with international best practices.
On the academic side, Egamberdiyeva S.R. (2019) discusses the structural importance of
financial and managerial accounting in reducing operational irregularities, while Norbekov D.
and Tashmanov G‘. (2021) explore practical applications of cash handling within the broader
scope of banking practice in Uzbekistan. They emphasize that inadequacies in document
processing, poor reconciliation methods, and inconsistent cash collection and transport timing
can expose banks to reputational and regulatory risks.
Internationally, the Basel Committee on Banking Supervision (2017) has proposed risk control
frameworks addressing operational risk, particularly in high-volume cash environments. It
recommends internal control loops, surprise audits, and real-time discrepancy detection as vital
components of cash operation systems.
Further literature, such as ISO 9564, outlines global standards for PIN management and cash
point access, stressing the need for technological solutions to safeguard customer and
institutional funds. This is particularly relevant as banks in Uzbekistan, including "Xalq Banki"
JSC, begin integrating cardless ATM access, smart safes, and encrypted vault logging to protect
against theft and fraud.
Emerging studies, such as Mamatqulov B. (2023), highlight the digital transformation of Uzbek
commercial banks, documenting the growing use of AI-driven analytics in cash demand
forecasting and GPS-based fleet monitoring for cash collection and transport vehicles. These
innovations are gradually bridging the operational efficiency gap between local and
international banks.
Collectively, the literature emphasizes the necessity of harmonizing manual cash processes with
automated systems, maintaining strict regulatory compliance, and modernizing cash logistics
infrastructure. This article builds on these insights to evaluate how "Xalq Banki" JSC
implements such measures and what gaps remain in achieving optimal operational resilience.
Research Methodology.
The study applies methods of comparative analysis, observation, and statistical review. Data
from "Xalq Banki" JSC was used to analyze real-world practices in cash management and
collection of valuables.
Analysis and Discussion of Results.
Cash operations within commercial banks are inherently high-risk due to the physical handling
of large monetary values and the operational complexity involved. At "Xalq Banki" JSC, these
operations are governed by a multilayered system of internal controls designed to ensure
security, transparency, and compliance with regulatory standards.
Each cash transaction within the bank — whether it involves deposit intake, withdrawals, or
inter-branch transfers — is subject to dual control, meaning it requires the simultaneous
authorization of two qualified personnel. This measure significantly reduces the likelihood of
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 368
internal fraud or human error. Additionally, CCTV surveillance is installed in all cashier zones,
cash storage rooms, and processing units, with real-time feeds accessible to security and
compliance teams.
Cash storage in branch vaults and ATM replenishment points is strictly monitored, and daily
limits for both inflow and outflow operations are enforced according to thresholds set by the
Central Bank of Uzbekistan. These limits are dynamically adjusted based on customer activity
patterns and prior transaction volumes.
The cash collection and transport operations of "Xalq Banki" JSC are managed through
partnerships with licensed and insured third-party service providers. Armored vehicles
equipped with GPS tracking, emergency alert systems, and digital route logging ensure the
secure transfer of cash between branches, ATMs, and the central cash vault. Each cash
collection and transport route is pre-planned and documented, including the denomination of
cash, total value, time of departure and arrival, and the identities of authorized personnel. Strict
chain-of-custody protocols are followed, and any deviation from planned routes or time
windows triggers automatic alerts.
As part of the bank’s modernization efforts, cash accounting is fully digitized using banking
ERP software that complies with IFRS (International Financial Reporting Standards) and
integrates directly with real-time operations data. Each cash movement is recorded through
system-generated entries tied to transaction orders, receipt numbers, and surveillance
timestamps. The bank’s internal audit division performs cross-checks using these logs to
identify discrepancies or anomalies.
Moreover, the use of predictive analytics helps the operations team forecast peak cash demand
periods by region and day of the week. This allows for more efficient scheduling of cash
collection and transport routes and avoids unnecessary accumulation of idle cash in low-traffic
branches, thereby reducing risk exposure and optimizing liquidity.
Overall, "Xalq Banki" JSC demonstrates a robust approach to organizing and safeguarding cash
operations, with a growing reliance on digital infrastructure and smart monitoring. However,
continuous investment in training, technology upgrades, and cyber-resilience will be necessary
to maintain competitiveness and operational excellence in the rapidly evolving financial
environment.
Table 1.
Average Monthly Collection Operations at "Xalq Banki" JSC
(Q2 2024)
№
Collection Type
Avg.
Operations/month
Avg.
Amount
(mln UZS)
Share (%)
1
ATM Collection
850
6,800
45
2
Daily Branch Cash
520
4,500
30
3
Retail Collection
300
2,300
15
4
Deposit Box Collection
100
1,000
10
Total
1,770
14,600
100
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 369
Conclusion and Recommendations.
Proper organization of cash operations and collection (cash collection and transport) activities is
vital for ensuring operational efficiency, minimizing risk, and building public trust in the
banking system. The analysis of "Xalq Banki" JSC highlights a number of strengths in the
bank’s approach to handling cash — including the use of dual control, CCTV surveillance,
GPS-enabled armored transport, and automated accounting systems.
However, given the growing complexity of financial operations and rising expectations from
regulators and clients, several strategic improvements are recommended:
1.
Expand automation of cash handling processes – Introduce advanced cash
management machines, automated vault systems, and real-time reconciliation tools to reduce
manual data entry and minimize human error during cashier operations.
2.
Improve and formalize training programs – Establish mandatory certification
programs for all employees involved in cashiering and cash collection and transport. Include
modules on digital fraud detection, regulatory compliance (e.g., CBU guidelines), and
emergency response protocols.
3.
Introduce blockchain-based tracking systems – Implement secure, immutable ledgers
for high-value cash movement and cross-branch fund transfers. Blockchain ensures traceability,
reduces manipulation risks, and provides audit transparency.
4.
Enhance centralized surveillance infrastructure – Expand real-time monitoring
systems that integrate video feeds, GPS vehicle tracking, and incident alerts into a single
command dashboard at headquarters.
5.
Develop internal audit indicators (KPIs) – Set measurable benchmarks for collection
time, cash discrepancy rates, cash collection and transport success ratios, and average
turnaround per cashier operation to continuously evaluate performance.
6.
Integrate forecasting analytics – Use AI and statistical tools to predict branch-level
and ATM cash demand, thus improving liquidity distribution and reducing emergency
replenishments.
These enhancements will align the bank’s operational framework with global best practices,
improve cost-effectiveness, and reduce risks associated with manual processing and physical
cash handling. More importantly, such measures will strengthen customer confidence and
regulatory compliance, positioning "Xalq Banki" JSC as a leader in modern, secure, and
resilient banking infrastructure.
References:
1. Central Bank of Uzbekistan. (2022). Regulations on Cash Handling and Collection
Activities in Commercial Banks. Tashkent: CBU Press.
2. Egamberdiyeva, S.R. (2019). Financial and Management Accounting. Tashkent: Ilm va
Texnologiya.
3. Norbekov, D. & Tashmanov, G‘. (2021). Basics of Bank Practices. Tashkent: Iqtisod va
Moliya Publishing.
4. "Xalq Banki" JSC. (2024). Internal Reports and Operational Statistics for Q1–Q2 2024.
5. Basel Committee on Banking Supervision. (2017). Sound Practices for the Management of
Operational Risk. Bank for International Settlements.
6. International Organization for Standardization (ISO). (2011). ISO 9564: Personal
Identification Number (PIN) Management and Security. Geneva: ISO.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 370
7. Uzbekistan Ministry of Finance. (2021). Guidelines on Cash Transactions and Risk
Management in the Banking Sector. Tashkent: Ministry Publication.
8. Karimov, A.R. (2020). "Security and Efficiency in Cash Handling in Commercial Banks."
Journal of Finance and Economy, 3(2), pp. 25–34.
9. Mamatqulov, B. (2023). Digital Transformation in Uzbek Commercial Banks: Trends and
Tools. Tashkent: Finance Academy Press.
