EN ECB-PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 22 May 2014  
on the limitation of cash payments and receipts 
(CON/2014/37) 
 
Introduction and legal basis 
On 15 April 2014, the European Central Bank (ECB) received a request from Banca Na ţională a 
României (BNR) for an opinion on a draft law on st rengthening financial discipline in relation to cash 
payments and receipts and amending and supplemen ting a Government emergency ordinance on the 
introduction of modern payment systems (hereinafter the ‘draft law’). 
The ECB’s competence to deliver an  opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the second in dent of Article 2(1) of Council Decision 
98/415/EC1, as the draft law relates to means of paymen t. In accordance with the first sentence of 
Article 17.5 of the Rules of Procedure of the Eur opean Central Bank, the Governing Council has adopted 
this opinion. 
 1.  Purpose of the draft law  
1.1 The draft law aims to combat tax evasion and tax fraud and to strengthen financial discipline. It 
replaces Government Ordinance No 15/1996 on st rengthening financial a nd foreign currency 
discipline
2, which limits cash payments and receipts between legal persons3, by introducing stricter 
limitations. In addition, the dr aft law amends Government Em ergency Ordinance No 193/2002 on 
introducing modern payment systems4 by placing certain ceilings on interchange fees. 
 Limitation on cash payments and receipts 
1.2 The draft law limits cash payments and receipts in national and foreign cu rrency between legal and 
natural persons as follows: 
(a)  operations performed by legal persons ar e limited to a maximum amount per single 
transaction of RON 5 000 (around EUR 1 100) per day and a total amount of RON 10 000 (around EUR 2 200) per day; 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consulta tion of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
2  Published in Monitorul Oficial al României,  Part I, No 24/31.1.1996. 
3  The maximum value of transactions with a single legal person is specified as RON 5 000 (around EUR 1 100) per day 
and the total value of transactions per day as RON 10 000 (around EUR 2 200) . 
4  Published in Monitorul Oficial al României,  Part I, No 942/23.12.2002. 
ECB-PUBLIC  
2 (b)  the maximum amount in respect of operati ons performed by natura l persons is RON 10 000 
(around EUR 2 200) per transaction per day; 
(c)  fragmented cash payments and receipts and incentives for cash operations are forbidden;  
(d)  amounts exceeding the limits are to be sp lit between cash up to the specified ceiling and 
cashless payment instruments in respect of the remainder.  
 These limitations do not apply to credit institutions , electronic money institutions, institutions that 
provide payment services, non- banking financial institutions and entities conducting foreign 
exchange operations. 
1.3 The proposed limitations on operations perform ed by legal persons do not apply to: (a) cash 
deposits in accounts with credit institutions or  institutions that provide payment services; 
(b) payment of travel expenses for business pur poses; (c) cash payment of taxes, fees, 
contributions, fines and other obligations owed to the general consolidated state budget; (d) cash 
withdrawal from accounts with credit institutions or  institutions that provide payment services for 
the purposes of paying wages and other employee entitlements; (e) ATM cash withdrawals; and (f) transfer of amounts through institutions that provide payment services. 
1.4 The Ministry of Public Finance and the National Fiscal Administration Agency will assess 
compliance with the limitations and impose fines.  Fines are to be set at 25 % of the amount 
received or paid in excess of the relevant ceiling.  
 Ceilings on interchange fees 
1.5 The draft law limits the interchange fees for car d-based transactions to 0.2 % of the value of the 
transaction for debit cards and 0.3 % of the valu e of the transaction for credit cards. Commercial 
card operations, ATM cash withdrawals and operati ons with cards issued by three-party card 
payment systems are exempt from these limitations. 
1.6 Failure to comply with the limitations is sanctioned with a fine.  2. General observations 2.1 Although Union law only regulates restrictions on cash payments in euro, the ECB considers it 
appropriate to assess the draft law’s provisions against the relevant Eurosystem practices.  
2.2 The draft law complies with Union law and is in  line with recital 19 of Council Regulation (EC) 
No 974/98
5, which states that ‘limitations on payments in notes and coins, established by Member 
States for public reasons, are not incompatible with the status of legal tender of euro banknotes and 
coins, provided that other lawful means for the settlement of monetary debts are available’6. The 
ECB acknowledges that other lawful means for the settlement of monetary debts, ensuring similar 
benefits to those of cash, are generally availabl e in Romania. The ECB also acknowledges that the 
                                                 
5 Council Regulation (EC) No 974/98 of  3 May 1998 on the introduction of the euro (OJ L 139, 11.5.1998, p. 1). 
6 See, most recently, Opinion CON/2014/4.  All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 
ECB-PUBLIC  
3 draft law’s objectives of combating tax evasion and money laundering qualify as public reasons 
justifying the establishment of the above mentioned limitations on cash payments.  
2.3 Limitations on cash payments should be proporti onate to the objectives pursued and should not go 
beyond what is necessary to achieve such objectives,  especially in view of the fact that the 
measures contained in the draft law also affect transactions between natura l persons and the fact 
that a proportion of the Romanian population do not  have bank accounts. Any negative impact of 
the proposed limitations should therefore be car efully weighed against the anticipated public 
benefits.  
2.4 In this respect, the ECB notes that the recently adopted Directive of the European Parliament and 
of the Council on the transparency and comparab ility of payment account fees, payment account 
switching and access to a basic payment account7 could make it easier for Union citizens to obtain 
payment accounts and related electronic payment services as an alternative to cash.  
2.5 The ECB also notes the recent Uni on legislative initiatives in this fiel d, in particular the European 
Commission’s proposal for a regulation of the European Parliament and of the Council on interchange fees for card-based payment transactions
8, which was published in July 2013 and is 
currently being discussed in the Council of the Eu ropean Union. As the Eu ropean Parliament has 
already agreed on a position, it is likely that th e proposed regulation will be adopted before the end 
of 2014. Since certain provisions of the draft law address similar matters to those in the proposed regulation, the ECB recommends awaiting the adopti on of the regulation prior to taking any further 
legislative action in this area at national level.  
 3. Specific observations  3.1 The explanatory memorandum to the draft law do es not mention the social impact of the limitation 
on cash payments and receipts contained in the draft law. Given that limitations are to be placed on transactions between natural persons and that a pr oportion of the Romanian population do not have 
bank accounts, a social impact assessment may be useful in weighing any negative impact of the 
proposed limitations against the anticipated public benefits.  
3.2 The ECB recommends introducing a degree of fl exibility into the draft law by, for example, 
allowing cash payments and receipts for compelling reasons or for reasons that are outside the customer’s control
9, such as where no payment service provider is available at the place or on the 
date of payment. 
3.3 The ECB suggests that the definitions of ‘fragmented receipt’ and ‘fragmented payment’10 should 
be further elaborated to provide clear criteria fo r the identification of the envisaged fragmentation. 
3.4 The ECB further recommends clarifying whether th e limitations noted in paragraph 3.1 cover cash 
                                                 
7  Adopted on 15 April 2014. Not yet pub lished in the Offi cial Journal. 
8  COM (2013) 550 final. 
9  See CON/2013/18.   
10  Article 2(a) and (b) of the draft law. 
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4 payment and receipt operations between natural pers ons for the transfer of ownership over goods or 
rights, the supply of services and the granting or reimbursement of loans.  
3.5 With a view to enhancing legal certainty, th e ECB also recommends clarifying to whom fines 
payable for failure to comply with the limitations on cash payments and receipts11 are addressed. 
 This opinion will be published on the ECB’s website.    Done at Frankfurt am Main, 22 May 2014. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
  
                                                 
11  Article 12 of the draft law.