Armenian law restricts cash payments to 300,000 drams

YEREVAN, January 18. /ARKA/. A set of amendments to the law on noncash payments and a number of related laws passed today by the parliament of Armenia in the second and final reading require that all transactions worth 300,000 drams ($625) and more made by individuals are to be carried out noncash. The amendments were backed by 66 lawmakers, 28 voted against and 5 abstained.

Deputy chairman of the Central Bank Vakhtang Abrahamyan said the revised laws apply to payments for goods, sale and purchase of property, use of goods, execution of work, provision of services, payment of salaries etc.

He said there are certain areas where the threshold is zero, such as budgetary receipts and payments, health care, education and legal services.

Abrahamyan said that the 300,000-dram threshold was chosen based on the results of studies and the actual volume of transactions. He noted that the transition to cashless payments is part of a plan to shift to digital economy.

He said the revised laws will come into force in phases- in 2022 in the capital Yerevan, in 2023 in provincial towns, and in 2024 throughout Armenia.

According to the deputy head of the Central Bank, Armenia has recorded an increase in non-cash payments and e-commerce in recent years, prompted both by the coronavirus pandemic and the development of technology and infrastructure. ($1 - 481.49 drams). -0-