YEREVAN, June 29. /ARKA/. In a statement issued today Armenia's Central Bank reminds that under a new law passed by the parliament on June 9, starting July 1, 2022 all business transactions worth more than 300,000 drams (about $700) and transactions between individuals worth more than 500,000 drams (about $1,100) will have to be made electronically, either through a mobile payment app, a payment terminal or via a bank wire transfer.  The limit for individuals will be reduced to 300,000 drams in July 2023.

The law applies to payments for such transactions as scholarships, public procurement, medical, educational, notary, legal and consulting services, as well as pensions, salaries and loans. The regulator warns that transactions made illicitly in cash can be annulled.

The Central Bank said two commercial banks- Acba Bank and Ameriabank -have undertaken to make large-scale investments and take measures to activate the system of cashless payments on cash register machines.

It said all taxpayers will receive notifications about the new law through the information platform "Taxpayer-3" of the State Revenue Committee. After receiving the appropriate notification and informing the servicing bank, their cash register software will be activated by the bank.

In line with the law, the Central Bank will set maximum and minimum limits of commission fees on non-cash transactions.

At the initial stage the law will come into force in Yerevan, in 2023 it will extend to regional centers, and in 2024 to the whole of Armenia.

The law is part of Prime Minister Nikol Pashinyan's government's plan to reduce the shadow economy. ($1 – 408.39 drams). --0—