Opinion of the European Central Bank of 22 May 2014 on the limitation of cash payments and receipts (CON/2014/37)
Date: 2014-05-22
Institutions: European Central Bank
Subjects: Romania, fight against crime, money, national law, payment, tax offence

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  Naţională  a 

României  (BNR)  for  an  opinion  on  a  draft  law  on  strengthening  financial  discipline  in  relation  to  cash 

payments  and  receipts  and  amending  and  supplementing  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  indent  of  Article 2(1)  of  Council  Decision 
98/415/EC1,  as  the  draft  law  relates  to  means  of  payment.  In  accordance  with  the  first  sentence  of 

Article 17.5 of the Rules of Procedure of the European 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  strengthening  financial  and  foreign  currency 
discipline2, which limits cash payments and receipts between legal persons3, by introducing stricter 

limitations. In addition, the draft law amends Government Emergency 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 currency between legal and 

natural persons as follows: 

(a)   operations  performed  by  legal  persons  are  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  

2  
3  

4  

Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
Published in Monitorul Oficial al României, Part I, No 24/31.1.1996. 
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) . 
Published in Monitorul Oficial al României, Part I, No 942/23.12.2002. 

 
 
 
 
 
                                                 
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(b) 

 the maximum amount in respect of operations performed by natural 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  split  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  performed  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  purposes;  (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  card-based transactions to 0.2 % of the value  of the 

transaction for debit cards and 0.3 % of the value of the transaction for credit cards. Commercial 

card  operations,  ATM  cash  withdrawals  and  operations  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 974/985, 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 available in Romania. The ECB also acknowledges that the 

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6 

Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro (OJ L 139, 11.5.1998, p. 1). 
See, most recently, Opinion CON/2014/4. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 

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draft  law’s  objectives  of  combating  tax  evasion  and  money  laundering  qualify  as  public  reasons 

justifying the establishment of the abovementioned limitations on cash payments.  

2.3  Limitations on cash payments should be proportionate 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  natural  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  carefully  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  comparability  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 Union legislative initiatives in this field, 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  transactions8,  which  was  published  in  July  2013  and  is 

currently being discussed in the Council of the European Union. As the European Parliament has 

already agreed on a position, it is likely that the 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 adoption 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 does 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 proportion 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  flexibility  into  the  draft  law  by,  for  example, 

allowing  cash  payments  and  receipts  for  compelling  reasons  or  for  reasons  that  are  outside  the 
customer’s control9, 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 for the identification of the envisaged fragmentation. 

3.4  The ECB further recommends clarifying whether the limitations noted in paragraph 3.1 cover cash 

7  
8  
9  
10  

Adopted on 15 April 2014. Not yet published in the Official Journal. 
COM (2013) 550 final. 
See CON/2013/18.   
Article 2(a) and (b) of the draft law. 

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payment and receipt operations between natural persons 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,  the  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. 

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