Restrictions on Cash Transactions to Begin January 1: What Changes Can Be Expected

Starting January 1, a number of changes concerning cashless transactions will be implemented. Transactions exceeding 300,000 drams will be conducted exclusively through cashless means. The draft law proposing amendments to the 'Law on Cashless Transactions' has already passed the first reading in the National Assembly.

According to the justification, restrictions have also been imposed on both the expenditure and income sides of cash, considering the necessity to regulate potential large transactions. Moreover, these restrictions are categorized hierarchically.

The draft establishes that starting January 1, 2022, all transactions involving the sale of goods (properties), usage of goods (properties), completion of work, and provision of services between individuals in the territory of Armenia will be executed in cashless form, according to a structured hierarchy. When setting cash limitations on both expenditure and income sides, the uneven development between Yerevan and the regions has been taken into account. Therefore, the requirements for cashless payments have been classified based on locations and specified cashless payment requirements have different timelines (Yerevan, regional centers, and other urban areas).

This package of bills aims to create conditions for citizens to carry out cashless payments. Specifically, it includes provisions for the installation of devices that accept payment cards in stores and other service areas.

The legislative initiative also proposes to strengthen tax administration and combat the shadow economy. The package includes provisions that prohibit setting higher prices and/or receiving larger amounts for products or services paid for through cashless means.

In establishing provisions regarding cashless payments, considerations have been taken regarding sectors prone to risks related to the shadow economy (healthcare, education, etc.), where cash restrictions may assist in achieving the designated goals. The adoption of the draft law will also facilitate the introduction and utilization of various payment instruments/tools (QR codes, contactless and other technologies, instant payments) based on continuously developing information technologies in various sectors of the economy, including state payments, thus contributing to Armenia's strategic goal of becoming a leading country in IT development and application.

It is also planned to make payments for services provided by lawyers and notaries exclusively cashless.