ArmInfo.From July 1, 2022, cash circulation will be restricted in Armenia. On Wednesday, Armenia's Parliament amended the RA Law on Cashless Settlement. The amendments were drafted by the Central Bank of Armenia (CBA).
The dominant parliamentary faction Civil Contract voted for the amendments, the Armenia opposition faction voted against and the With Honor faction abstained from voting.
The amendments set restrictions to the maximum amount of cash payments, with all the deals exceeding AMD 300,000 (about $625) to be cashless.
The amendments will apply to allocations from the state and local budgets, notarial and attorney's fees, wages, scholarships, insurance indemnities, bank loans, etc.
According to the CBA, the objective is to make businesses accept cashless payments for goods and services, as well as to reduce the share of shadow economy.
Commenting on the fears that commission charges will cause a rise in prices for goods and services, CBA Vice-Chairman Nerses Yeritsyan stated that cash and non-cash payments would not differ. The CBA can set the commission limits and regulate prices, he said.
Members of the Armenia opposition faction disagreed with the CBA's arguments. Aram Vardevaryan of the Armenia faction said that banks will be the only beneficiaries as the new system ensures their monopoly over cash circulation.
The amendments will be enforced step by step.
