Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the legal tender of euro banknotes and coins
Date: 2023-06-28
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: euro, euro area, issuing of currency, paper money, payment, single monetary policy

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   EUROPEAN COMMISSION  Brussels, 28.6.2023  COM(2023) 364 final 2023/0208 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the legal tender of euro banknotes and coins {SEC(2023) 257 final} - {SWD(2023) 233 final} - {SWD(2023) 234 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The arrival of the euro as the single European currency was a major step forward in European 
integration. Euro cash is a dominant means of payment1, as citizens and retailers use euro cash 
in  daily  transactions  to  make  payments  or  give  change  in  the  euro  area.  Cash  is  the  only 
means  of  payment  that  allows  direct  in-person  payments,  with  immediate  settlement  and 
without involvement of any third party or use of electronic equipment. 

The  growth  of  electronic  payments,  a  trend  accelerated  by  COVID-19,  has  led  to  a  general 
decline in cash payments and the reductionof automated teller machine (ATM) networks in a 
number of Member States means there are risks to access to cash. Thus, the issue of the scope 
and meaning of the legal tender status of cash has become more prominent in the EU policy 
agenda, as outlined in the Commission’s Retail Payments Strategy and in view of the recent 
ruling of the Court of Justice of the European Union on the matter2.  

This ruling is significant because it sets out in the Court’s jurisprudence the key aspects of the 
concept  of  legal  tender,  which  until  now  have  only  been  found  in  the  Commission 
Recommendation of 22 March 2010 on the scope and effects of legal tender of euro banknotes 
and coins3. Although  EU law directly attributes the status  of legal  tender to  euro banknotes 
and  coins,  neither  primary  nor  secondary  EU  law  defines  the  concept  of  legal  tender.  In  its 
judgment in the legal tender cases, the Court of Justice held that the concept of ‘legal tender’ 
of euro banknotes enshrined in Article 128(1) TFEU is a concept of Union law that must be 
given an autonomous and uniform interpretation throughout the European Union. The concept 
of legal tender as interpreted by the Court of Justice for euro banknotes implies: (i) mandatory 
acceptance, (ii) at full face value and (iii) with the effect of discharging payment obligations4, 
as set out by Point 1 of the 2010 Commission Recommendation. 

In order to preserve the effectiveness of the legal tender status of cash in practice, it is key to 
ensure the ease of access to euro cash, because if citizens do not have access to cash, they will 
not be able to pay with it and its effective legal tender status will be undermined. 

Consequently, this proposal ensures that the physical form of central bank money, euro cash, 
remains present, available and accepted by all euro-area residents and enterprises.  

• 

Consistency with existing policy provisions in the policy area 

Other than the relevant provisions of the Treaties (Article 3(1)(c) TFEU and Articles 127 to 
133 TFEU), article 11 of Regulation 974/98 on the introduction of the euro which grants legal 
tender status to euro coins5, the Commission Recommendation of 2010 and the proposal for a 
Regulation of the European Parliament and of the Council on the establishment of the digital 

https://www.ecb.europa.eu/euro/cash_strategy/cash_role/html/index.en.html  
See  judgment  of  26  January  2021  in  Joined  Cases  C-422/19  and  C-423/19,  Dietrich  and  Häring 

Commission  Recommendation  of  22  March  2010  on  the  scope  and  effects  of  legal  tender  of  euro 

See  judgment  of  26  January  2021  in  Joined  Cases  C-422/19  and  C-423/19,  Dietrich  and  Häring 

1 
2 
(EU:C:2021:63). 
3 
banknotes and coins (2010/191/EU) 
4 
(EU:C:2021:63, paragraph 49).   
5 

Council  Regulation  (EC)  No  974/98  of  3  May  1998  on  the  introduction  of  the  euro  (OJ  L139, 
11.5.1998, p.1). 

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euro (adopted alongside the present proposal),6 there are no policy provisions in the relevant 
policy area, i.e. monetary law as part of the monetary policy of the euro area. 

The  present  proposal  is  consistent  with  those  provisions  of  primary  law.  In  particular,  this 
proposal  for  a  Regulation  is  consistent  with  the  2010  Commission  Recommendation  which 
outlined  a  common  definition  of  the  concept  of  legal  tender.  In  order  to  ensure  coherence 
between  the  two  forms  of  central  bank  money  (digital  euro  and  euro  cash),  the  digital  euro 
will also be regulated in a consistent manner with the legal tender of cash, without prejudice 
to the differences between these forms of the euro.  This proposal complements the proposal 
for a Regulation establishing the digital euro, as the digital euro should complement cash, not 
replace  it.  That  is  why  the  Commission  is  making  a  legislative  proposal  to  ensure  the 
acceptance and availability of cash. 

Once  adopted, 
the  2010  Commission 
Recommendation, which will become devoid of purpose. The Commission would then make 
clear that the Recommendation no longer applies. 

the  proposed  Regulation  will 

supersede 

• 

Consistency with other Union policies 

This  proposal  is  in  line  with  other  policies  pursued  at  Union  level.  In  particular,  it  is 
consistent with the Retail Payment Strategy of the Commission adopted in September 2020. 

This  proposal  is  also  consistent  with  the  European  Accessibility  Act,  which  covers  ATMs, 
and with the Union’s policy efforts to support social inclusion, including in the context of the 
European Pillar of Social Rights. It aims to ensure that everyone in the euro area has sufficient 
and  effective  access  to  cash.  This  is  particularly  relevant  for  vulnerable  groups  with  a 
dependency  on  using  cash  for  payments,  which  typically  include  older  people,  those  with  a 
disability who may have difficulty in accessing digital payments, people with limited digital 
skills and/or income. These groups tend to have a strong preference to use cash to settle their 
payments over electronic means of payments. Furthermore, financially excluded people, such 
as the unbanked, asylum seekers and migrants, who may not be able or willing to use means 
of  payment  supplied  by  the  private  sector,  also  rely  on  cash  as  their  payment  method. 
Moreover,  evidence  shows  that  the  main  reasons  why  cash  is  preferred  are  that  (i)  cash  is 
considered  to  make  one  more  aware  of  one’s  own  expenses,  and  (ii)  cash  is  perceived  as 
anonymous (and therefore protects privacy)7, whilst it has the unique feature of allowing for 
direct  payments  with  immediate  settlement  without  the  need  for  a  third  party.    In  terms  of 
preserving  cash  as  a  payment  option,  the  2022  ECB  SPACE  study8  shows  that  60%  of 
consumers still considered the option to pay with cash to be important or very important.  It 
confirms that ‘‘despite the impact of the pandemic and related lockdown measures and self-
reported preferences, an increasing share of euro area consumers would like to have cash as a 
payment option’’9. 

6 

Commission  Recommendation  of  22 March  2010  on  the  scope  and  effects  of  legal  tender  of  euro 
banknotes and coins (europa.eu) 
European Central Bank (2022), Study on the payment attitudes of consumers in the euro area (SPACE) 

7 
https://www.ecb.europa.eu/stats/ecb_surveys/space/html/ecb.spacereport202212~783ffdf46e.en.html#toc7  

8 

Study on the payment attitudes of consumers in the euro area (SPACE) – 2022 (europa.eu) 

9 
European Central Bank (2022), Study on the payment attitudes of consumers in the euro area (SPACE), 
p. 59 https://www.ecb.europa.eu/stats/ecb_surveys/space/html/ecb.spacereport202212~783ffdf46e.en.html#toc7  

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2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This proposal for a regulation is based on Article 133 TFEU, which provides for the adoption 
of measures, including monetary law measures, which are necessary for the use of the euro as 
the single currency. This Treaty provision reflects the need to establish uniform principles for 
all Member States whose currency is the euro, in order to safeguard the overall interests of the 
Economic and Monetary Union and of the euro as the single currency. 

• 

Subsidiarity 

In  accordance  with  Article  5(3)  TEU,  the  principle  of  subsidiarity  does  not  apply  in  areas 
which  fall  within  the  Union’s  exclusive  competence.  In  accordance  with  Article  3(1)(c) 
TFEU, the EU has an exclusive competence in the area of monetary policy for the Member 
States whose currency is the euro. In this area, action by the euro area Member States is not 
possible and the principle of subsidiarity thus does not apply. 

• 

Proportionality 

Proportionality has been an integral part of the impact assessment accompanying the proposal. 
While  the  adoption  of  measures,  where  appropriate,  to  ensure  the  acceptance  of  cash  or 
sufficient  and  effective  access  to  cash  may  impose  some  burdens  on  the  authorities 
responsible  for  taking  them  and  on  the  parties  responsible  for  implementing  them,  the 
measures do not go beyond what is necessary to guarantee the objectives of acceptance of and 
access  to  cash,  and  the  proposal  leaves  flexibility  for  Member  States  to  only  take  measures 
where they are needed and to tailor the measures to their particular national circumstances. In 
accordance  with  the  principle  of  proportionality  as  set  out  in  Article  5  of  the  Treaty  on 
European Union (TEU), this proposal for a Regulation therefore does not go beyond what is 
necessary and proportionate in order to achieve its objectives. 

• 

Choice of the instrument 

A Regulation of the European Parliament and of the Council is an appropriate  instrument to 
contribute to the creation of a single rulebook, being directly and immediately applicable, and 
thus removing the possibility of differences in application in different Member States due to 
divergences in transposition. This choice is in line with the objective of the proposal. 

3. 

• 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Stakeholder consultations 

The consultation strategy supporting this proposal was composed of a number of initiatives: 

–  A targeted consultation on a digital euro was launched by the Commission on 5 April 
2022 and closed on 16 June 2022. A dedicated section of this consultation included 
specific  questions  on  the  legal  tender  of  cash.  The  targeted  consultation  gathered 
information  from  industry  specialists,  payment  service  providers  (including  credit 
institutions,  payment  and  e-money  institutions),  payment  infrastructure  providers, 
developers of payment solutions, merchants, merchant associations, retail payments 
regulators,  and  supervisors,  anti-money  laundering  (AML)  supervisors,  financial 
intelligence  units,  and  other  relevant  authorities  and  experts  as  well  as  consumer 
organisations,  in  order  to  feed  into  the  impact  assessment  prepared  by  the 

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Commission  in  view  of  the  proposal  for  a  regulation  on  a  digital  euro  and  this 
proposal.  The  main  findings  of  the  targeted  consultations  are  the  following: 
consumer  organisations,  a  number  of  business  associations  and  most  of  the 
professional respondents which expressed their views supported legislative action at 
EU level to enhance legal certainty and enshrine the legal tender status of euro cash 
in  legislation.  In  general,  respondents  suggested  that  practical  elements  should  be 
considered  when  allowing  further  exceptions  to  the  general  principle  of  mandatory 
acceptance.  Professional  respondents  appeared  to  have  mixed  views  regarding  the 
provision  of  administrative  penalties  for  cash  non-acceptance,  while  consumer 
associations  supported  this  provision.  Respondents  showed  their  broad  support  for 
the prohibition on surcharges on payments with euro banknotes and coins in case of 
an  EU  regulation.  Overall  and  in  each  relevant  stakeholder  group  except  financial 
institutions,  respondents  also  supported  a  provision  to  guarantee  the  availability  of 
cash,  such  as  an  obligation  on  Member  States  to  adopt  rules  to  ensure  sufficient 
access to cash and report these rules to the Commission and the ECB, in case of an 
EU  regulation.  All  results  were  analysed  and  considered  when  drafting  the  impact 
assessment and this proposal. 

–  Member  States  had  the  opportunity  to  give  their  views  in  various  meetings  of  the 
Euro  Legal  Tender  Expert  Group  (ELTEG).  The  discussions  were  supported  by 
targeted  consultations  of  Member  States,  using  questionnaires.  The  ELTEG 
discussions confirmed the existence of legal uncertainty regarding the legal tender of 
euro  cash  and  differing  application  of  its  principles  in  the  euro  area.  ELTEG 
identified a range of issues of acceptance and availability of cash on the ground, and 
its final report includes a set of 25 principles on the legal tender of cash which have 
been taken into account in the drafting of this proposal. 

–  On  7  November  2022,  the  Commission  organised  a  high-level  conference  on  the 
digital  euro,  bringing  together  representatives  from  national  and  EU  authorities, 
MEPs,  private  sector  and  civil  society  representatives  and  academia.  The 
implications of the digital euro for euro cash were raised on a number of occasions 
during the discussions,  highlighting mainly that the digital  euro would complement 
cash. 

–  Throughout  the  process,  the  ECB  has  been  closely  involved  in  discussions  at 

technical level. 

• 

Collection and use of expertise 

A number of inputs and sources of expertise were used in preparing this initiative, including 
the following: 

– 

– 

– 

– 

– 

Evidence supplied through the various consultations listed above. 
Final report of ELTEG III10. 

2022 report of the Euro Retail Payments Board (ERPB). 

ECB surveys and working papers, staff working documents and statistics. 

Commission research. 

10 

See the final report under the 5th meeting of ELTEG III. 

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• 

Impact assessment 

This  proposal  is  accompanied  by  an  impact  assessment,  which  was  first  submitted  to  the 
Regulatory Scrutiny Board (RSB) on 14 October 2022. The RSB gave a negative opinion on 
18 November 2022. The  impact  assessment  was resubmitted to  the RSB on  23  March 2023 
and  was  approved  on  25  April  2023.  Addressing  the  comments  of  the  RSB,  the  impact 
assessment clarifies the link between the initiative on the digital euro and the one on the legal 
tender  of  cash,  it  details  the  specific  aspects  of  the  legal  tender  of  cash  initiative,  and  in 
particular on access to cash, and it exemplifies the significance of costs for banks of potential 
EU measures such as re-introducing ATMs.  

There are two main aspects to the legal tender of cash: the acceptance of, and access to cash. 
In the absence of EU-level action, the extent to which cash is accepted by enterprises and the 
ability of citizens and enterprises to get sufficient access to cash will remain suboptimal and 
variable across the euro area, due to  the lack of a common application and interpretation  of 
the concept of legal tender.  

The acceptance of cash is dealt with in the jurisprudence of the European Court of Justice, and 
the  aspects  related  to  the  acceptance  of  cash  which  are  covered  in  the  CJEU  ruling  are 
codified and clarified in this proposal.  These  are:  mandatory  acceptance  in  principle, at  full 
face  value,  with  the  power  to  discharge  payment  obligations.  The  impact  assessment  also 
suggests  that  more  detailed  clarifications  as  to  the  meaning  of  legal  tender  should  be 
considered for the legal proposal to ensure added-value and legal certainty, whilst respecting 
the  jurisprudence  of  the  Court  of  Justice  of  the  European  Union.  Furthermore,  the  impact 
assessment  concludes  that  cash  acceptance  levels,  including  the  prevalence  of  ex  ante 
unilateral exclusions of cash, should be monitored and measures should be taken if acceptance 
of cash is not ensured. 

As these matters relate to the scope, effects and exceptions to the key aspects of the concept 
of  legal  tender  which  are  covered  in  the  jurisprudence  of  the  Court,  legislating  on  these 
matters is  largely  a matter of clarification and codification in  the interests of coherence and 
better law-making, with little margin for policy choice.  

In relation to access to cash, there is scope for policy choice in relation to the nature and form 
of action to be taken, and these aspects are therefore analysed in boxes throughout the impact 
assessment. In order for cash to be used as an effective means of payment, access to various 
cash services should be ensured, in particular cash withdrawals and cash deposits on payment 
accounts of credit institutions. These services enable cash to circulate between different actors 
in society.  

The impact assessment identified a growing (between 2016 and 2019) share of citizens which 
expressed  concerns  about  access  to  ATMs,  and  a  rather  heterogeneous  and  sometimes 
problematic situation regarding cash access amongst the Member States. Consequently, there 
is a risk that it will not be possible to ensure that everyone in the euro area has access to basic 
cash  services  at  reasonable  conditions,  notably  price  and  distance.  This  could  lead  to  the 
exclusion of vulnerable groups with a dependency on cash payments, and to the erosion and 
gradual  loss  of  the  effectiveness  of  the  status  of cash  as  legal  tender,  but  also  as  a  possible 
contingency  payment  method  in  crisis  situations.  Moreover,  it  should  be  noted  that  cash  is 
seen  by  many  as  a  payment  method  with  social  benefits,  providing  a  clear  overview  of 
expenses, with high degrees of ease of use, speed, safety and anonymity/privacy in financial 
matters.   

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Two options were identified for addressing the access to cash matters: 1) a soft law instrument 
(e.g. a Commission Recommendation), or 2) a legally binding obligation on Member States in 
the  proposed  Regulation  on  legal  tender  of  cash  to  be  implemented  by  Member  States. 
Choosing the first option would not allow for a uniform interpretation of the key principles of 
legal tender of cash. This would only partially address the objective of ensuring a sufficient 
access  to  cash  and  tolerating  insufficient  access  in  parts  of  the  euro  area  could  erode  the 
effectiveness  of  the  legal  tender  status  of  the  single  currency.  The  impact  assessment 
concludes  that  the  preferred  option  on  access  to  cash  is  the  second  option,  which  would 
ensure  coherence  in  the  regulatory  treatment  of  the  two  forms  of  the  euro.  Member  States 
should  designate  one  or  more  national  competent  authorities  with  oversight  and  regulatory 
powers  over  the  market  activities  of  the  cash  industry,  and  which  should  monitor  access  to 
cash and related cash services. Member States will have the responsibility to rigorously assess 
what  sufficient  and  effective  access  means  in  their  country-specific  context  (i.e.  taking  also 
into account demand for cash access), and what degree of action needs to be taken in order to 
guarantee  it.  The  Commission  would  be  able  to  analyse  whether  the  measures  taken 
corresponded to the common approach of the regulation and the Member States’ assessments 
of the needs on their territory. In performing its analysis, the Commission would consult the 
European Central Bank. This option therefore would also ensure that the legal tender status of 
euro cash would be effectively and coherently protected across the euro area.  

Since  Member  States  would  need  to  further  specify  their  measures  taken  to  ensure  cash 
access,  define  the  sufficient  geographic  standards  for  access  requirements  for  ATMs  that 
correspond to their population needs and service level specificities, and assess which payment 
service  providers  fall  within  access  requirements  and  recommendations,  the  possible  cost 
implications would be determined by the needs on the ground and the corresponding decisions 
of the Member States. If access to cash remains sufficient in a Member State, measures would 
not be needed in that Member State so there would not be any additional costs on banks. In 
Member States where cash access has already significantly deteriorated there could be costs 
for banks associated with restoring a sufficient level of access to cash, but the extent of such 
costs would depend on the decisions of the national authorities on the sufficient and effective 
levels of access, also in the case that the Commission would adopt an implementing act. The 
EU Regulation as such would not directly impose costs on banks or retailers.  

This  proposal  is  not  expected  to  have  any  environmental  impact,  and  is  consistent  with  the 
European Climate Law. As outlined above, the proposal is expected to have a positive social 
impact,  by  enhancing  the  social  inclusion  of  vulnerable  groups  which  tend  to  be  more 
dependent on cash or to be excluded from using electronic means of payment. 

• 

Regulatory fitness and simplification 

The present initiative is not a REFIT initiative. It is not based on an evaluation of any existing 
Regulation. 

This initiative will be largely neutral from a one-in one-out perspective. There is currently no 
EU legislation on the legal tender of cash, hence there are no existing administrative costs that 
could be saved in this area.  

This  initiative  does  not  impose  any  new  and  significant  administrative  costs,  i.e.  specific 
labelling,  reporting  or  registration  requirements,  which  would  need  to  be  offset  by  cost 
savings elsewhere. 

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• 

Fundamental rights 

The  initiative  is  consistent  with  fundamental  rights.  It  respects  the  fundamental  rights  to 
freedom  to  conduct  a  business  (enshrined  in  Article  16  of  the  EU  Charter  of  Fundamental 
Rights of the European Union) and the fundamental right of consumer protection (Article 38). 

As  regards  other  relevant  fundamental  rights,  the  possible  limitations  ensuing  from  this 
Regulation  are  justified  by  objectives  of  general  interest,  respect  their  essence  and  comply 
with the principle of proportionality. 

4. 

BUDGETARY IMPLICATIONS 

This Regulation has no budgetary implications. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The  proposal  includes  a  general  plan  for  monitoring  and  review  of  the  impact  of  the 
Regulation.  The  Commission  will  be  required  to  carry  out  a  review  on  the  operation  and 
effects of this Regulation and submit a report to the European Parliament and to the Council, 
in  line with  the Commission’s Better Regulation  Guidelines. Member States  should provide 
the Commission with necessary information for the preparation of that report.  

• 

Detailed explanation of the specific provisions of the proposal 

Subject matter and scope (Articles 1 and 2) 

The proposal provides for detailed rules on the scope and effects of the legal tender of cash 
and on access to euro banknotes and coins. The rules govern the settlement of pecuniary debts 
in so far as they are to be settled in cash, where a payment obligation exists. The proposal also 
includes rules on admissible exemptions,  rules for monitoring the acceptance of cash and in 
particular  the  prevalence  of  ex  ante  unilateral  exclusions  of  cash  in  the  euro  area,  and  a 
provision to ensure effective access to cash.  

Definition of legal tender and exceptions (Articles 4, 5 and 6) 

The proposal sets out, for the first time in secondary legislation, a definition and regulation of 
legal tender for cash. Until this time ‘legal tender’ is only defined in the Recommendation of 
the Commission of 2010 and in the Court of Justice case law in Joined Cases C-422/19 and C-
423/19, which interprets the notion of legal tender contained in Article 128(1) TFEU for euro 
banknotes.  In  line  with  that  case  law,  Article  4  defines  the  legal  tender  of  cash  as  entailing 
mandatory  acceptance,  at  full  face  value,  with  the  power  to  discharge  from  a  payment 
obligation.  A  payee  shall  not  refuse  euro  cash  tendered  in  payment  unless  the  parties  have 
agreed on a different means of payment or an exception applies. 

Article 5 sets out the conditions under which a refusal to accept euro cash would be legally 
possible; such a refusal  must be made in good faith, be based on legitimate grounds, and in 
line  with  the  principle  of  proportionality  in  view  of  the  concrete  circumstances  in  which  a 
payment is to be made. The burden of proof that these conditions are met for such good faith 
circumstantial exceptions is on the payee. Article 5 sets out two legitimate grounds on which 
euro  cash  may  be  refused  on  that  basis  in  a  non-exhaustive  list,  namely  the  tendering  of 
banknotes the value of which is manifestly disproportionate to the value of the amount to be 
settled,  and  in  exceptional  cases  where,  at  the  relevant  time,  the  enterprise  has  no  change 
available  or  if  the  enterprise  would  not  have  enough  change  available  as  a  result  of  that 
payment to carry out its normal transactions.  

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Article 6 empowers the Commission to adopt additional exceptions of a monetary law nature 
to the principle of mandatory acceptance by means of delegated acts. These exceptions should 
be  justified  and  proportionate,  should  not  undermine  the  effectiveness  of  the  legal  tender 
status of euro cash, and should only be permitted provided that other means for the payment 
of monetary debts are available. 

Acceptance of payments in cash (Article 7) 

Article 7 aims to ensure that the fundamental legal tender principle of mandatory acceptance 
is  not  undermined  by  widespread  cash  non-acceptance  levels  through  the  unilateral  and  ex 
ante exclusion of cash by enterprises.  

Member States would have the obligation to monitor the level of ex ante unilateral exclusions 
of payments in cash and to ensure the acceptance of cash fulfilling the principle of mandatory 
acceptance of cash as outlined in Article 4. Member States would need to report annually their 
assessment to the Commission and the European Central Bank. If cash non-acceptance levels 
are  deemed  to  undermine  the  mandatory  acceptance  of  euro  banknotes  and  coins,  Member 
States would need to take remedial measures.  

Access to cash (Articles 8) 

Article 8 establishes the obligation on Member States to ensure sufficient and effective access 
to  cash  throughout  their  territory,  in  all  their  regions,  including  urban  and  non-urban  areas. 
This is required to safeguard the effectiveness of the legal tender of euro cash in practice.  

Member States would have the obligation to monitor the access to cash. They would also need 
to  assess  annually  the  situation  in  their  territory  and  report  their  assessment  to  the 
Commission and the European Central Bank. If sufficient and effective access to cash is not 
ensured, Member States would need to take remedial measures. 

Procedural aspects (Article 9) 

This  article  aims  to  set  out  the  procedurals  aspects  in  order  to  effectively  implement  the 
obligations  set  out  in  Articles  7  and  8.  In  this  regard  all  Member  States  are  required  to 
designate  one  or  more  national  competent  authorities,  which  would  have  the  necessary 
administrative and regulatory powers as regards acceptance of payments in cash and access to 
cash.  

The designated national competent authorities would be entitled to assess if the principle of 
mandatory  acceptance  of  cash  is  not  undermined  by  widespread  cash  non-acceptance  levels 
through the unilateral and ex ante exclusion of cash by enterprises, and if the access to cash is 
sufficient and effective in the Member States’ territories. The assessment will be based on a 
set  of  common  indicators  adopted  by  the  Commission  by  way  of  implementing  acts.  That 
assessment would be reported to the Commission as provided in Article 13. If Member States 
would  take  remedial  measures  regarding  their  obligations  set  out  in  Articles  7  and  8,  those 
remedial measures would need to be indicated in the annual report. Member States would not 
be  required  to  adopt  implementing  measures  if  their  assessment  shows  that  the  principle  of 
mandatory  acceptance  of  cash  is  not  undermined  by  widespread  cash  non-acceptance  levels 
through  the  unilateral  and  ex  ante  exclusion  of  cash  by  enterprises,  and  if  sufficient  and 
effective access to cash is ensured on their territory.  

However,  where  the  actions  of  a  Member  State  appear  insufficient  or  if  the  Commission 
considers that the acceptance of cash payments and/or sufficient and effective access to cash 
in  a Member State is  not  in  line with  the obligations  set  out  in  Articles  7 and 8 despite the 
findings  of  the  annual  report,  the  Commission  is  empowered  to  adopt  implementing  acts 

EN 

8 

  EN 

providing  for  adequate  and  proportionate  measures  that  should  be  adopted  by  the  Member 
State concerned.  

Delegated and implementing acts (Articles 10, 11) 

The  Commission  will  have  the  power  to  adopt  delegated  acts.  Article  10  clarifies  the 
procedure to be followed when delegated acts are adopted, stipulated in article 6. 

Article 11 indicates that  the Commission  shall be assisted by  a committee in  relation  to  the 
implementing act procedure stipulated in article 9.  

Penalties (Article 12) 

In  order  to  ensure  that  the  Regulation’s  provisions  are  enforced,  while  allowing  Member 
States  a level  of flexibility on the nature of the  penalties applicable, Article  12  provides for 
Member States to lay down rules on penalties applicable to infringements of the Regulation.  

Reporting (Article 13) 

Article 13 provides for each Member State to submit an annual report to the Commission and 
the  ECB  on  the  exceptions  to  mandatory  acceptance  and  their  application,  on  detailed  data 
and analysis of the situation in the Member State as regards access to cash and acceptance of 
cash,  and  the  remedial  measures  to  be  taken  pursuant  to  Articles  7  and  8,  and  on  the 
implemented penalties. 

Remedies (Article 14) 

Article  14  requires  Member  States  to  inform  natural  persons  and  enterprises  about  the 
channels and remedies they have in order to lodge complaints with the competent authorities 
about cases of unlawful refusal to accept cash and insufficient access to cash. 

Interaction between euro banknotes and coins and the digital euro (Article 15) 

Article 15 requires the convertibility of cash and the digital euro into each other at par, and for 
the avoidance of doubt gives the payer the right to choose to pay in cash or digital euro where 
mandatory acceptance of both applies in accordance with this Regulation, including notably 
those provisions affecting mandatory acceptance  (i.e. articles 4, 5, 6 and 7), as well as with 
the digital euro Regulation. 

Review (Article 16) 

Article  16  provides  for  the  Commission  to  carry  out  a  review  of  the  Regulation  five  years 
after its entry into force and to report to the Parliament and Council. Member States should 
provide the Commission with the necessary information for the preparation of this report. 

Entry into force (Article 17) 

The Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

EN 

9 

  EN 

 
 
2023/0208 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the legal tender of euro banknotes and coins 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  functioning  of  the  European  Union  and  in  particular 
Article 133, 

Having regard to the proposal form the European Commission,  

Having regard to the opinion of the European Central Bank,  

Acting in accordance with the ordinary legislative procedure,  

Whereas: 

According to Article 3(1), point (c), of the Treaty on the Functioning of the European 
Union  (TFEU),  the  Union  has  exclusive  competence  as  regards  monetary  policy  for 
the Member States whose currency is the euro.  

Pursuant to Article 128(1) of the Treaty on the Functioning of the European Union and 
Article 10 of Council Regulation (EC) No 974/9811 the euro banknotes  are to be the 
only banknotes which have the status of legal tender in Member States whose currency 
is the euro. Pursuant to Article 11 of Regulation (EC) No 974/98, euro coins shall be 
the  only  coins  which  have  the  status  of  legal  tender  in  the  Member  States  whose 
currency is the euro. 

Commission  Recommendation  on  the  scope  and  effects  of  legal  tender  of  euro 
banknotes  and  coins12  provides  for  a  common  definition  of  legal  tender  of  euro 
banknotes and coins. 
In  a  judgment  of  26  January  202113,  the  Court  of  Justice  of  the  European  Union 
clarified  that  the  concept  of  ‘legal  tender’  mentioned  in  Article  128(1)  TFEU  is  a 
concept  of  Union  law  that  must  be  given  an  autonomous  and  uniform  interpretation 
throughout the EU14. Secondly, the Court held that the concept of ‘legal tender’ of a 
means  of  payment  denominated  in  a  currency  unit  signifies  that  “that  means  of 

(1) 

(2) 

(3) 

(4) 

11 

Council  Regulation  (EC)  No  974/98  of  3  May  1998  on  the  introduction  of  the  euro  (OJ  L139, 
11.5.1998, p.1). 
OJ L83, 30.3.2010, p.70.  
See  judgment  of  26  January  2021  in  Joined  Cases  C-422/19  and  C-423/19,  Hessischer  Rundfunk, 

See  judgment  of  26  January  2021  in  Joined  Cases  C-422/19  and  C-423/19,  Hessischer  Rundfunk, 

12 
13 
EU:C:2021:63  
14 
EU:C:2021:63, point45  

EN 

10 

  EN 

 
 
 
 
 
                                                 
(5) 

(6) 

payment cannot generally be refused in settlement of a debt denominated in the same 
currency  unit,  at  its  full  face  value,  and  without  surcharges  for  the  payer,  with  the 
effect of discharging the debt”15. Thirdly, the Court stated that an obligation to accept 
euro banknotes and coins may, in principle, be restricted by the Member States whose 
currency is  the  euro  for  reasons  of public interest  and pursuant  to  their competences 
outside  of  the  area  of  monetary  law  and  policy  and  of  other  exclusive  Union 
competences, provided those restrictions are justified by a public interest objective and 
proportionate to it16. 

The  acceptance  of  euro  banknotes  and  coins  tendered  as  means  of  payment  can 
exceptionally  be  refused  if  the  refusal  is  made  in  good  faith,  based  on  legitimate 
grounds and concrete circumstances, which are beyond the control of the payee, and if 
the  refusal  is  proportionate.  For  example,  the  refusal  can  be  justified  if  for  the 
settlement  of  a  monetary  debt  the  tendered  euro  banknote  is  disproportionate 
compared  to  the  amount  owed  to  the  payee,  such  as  the  tendering  of  a  two  hundred 
euro banknote for the settlement of a debt of less than five euro.  In accordance with 
Council  Regulation  974/98,  except  for  the  issuing  authority  and  for  those  persons 
specifically  designated  by  the  national  legislation  of  the  issuing  Member  State,  no 
party should be obliged to accept more than 50 coins in any single payment. 

In  order  to  ensure  that  the  principle  of  mandatory  acceptance  of  payments  in  euro 
banknotes  and  coins  is  not  effectively  undermined  by  widespread  and  structural 
refusals of cash payments, it is necessary for Member States to monitor the level of ex 
ante  unilateral  exclusions  of  payments  in  cash  when  transactions  are  performed  in 
physical  premises.  Therefore,  Member  States  should  regularly  monitor  the  level  of 
unilateral  ex  ante  exclusions  of  payments  in  cash  when  payments  are  performed  in 
physical  premises  throughout  their  territory,  in  all  their  different  regions,  including 
urban  and  non-urban  areas,  on  the  basis  of  common  indicators  which  allow  for 
comparisons between the Member States. If in light of their assessment acceptance of 
payments in cash is ensured on their territory, Member States would not need to adopt 
specific measures in relation to their respective obligation. However, they would need 
to  continue  monitoring  the  situation.  If  a  Member  State  concludes  that  ex  ante 
unilateral exclusions of cash undermine the mandatory acceptance of payments in euro 
banknotes  and  coins  in  all  or  part  of  its  territory,  that  Member  State  should  take 
effective  and proportionate measures to remedy the situation, such as a prohibition or 
restrictions on ex ante unilateral exclusions of cash in all or parts of its territory,  for 
example in  rural  areas,  or in  certain  sectors which are deemed essential such as  post 
offices,  supermarkets,  pharmacies  or  healthcare,  or  for  certain  types  of  payments 
which are deemed essential.  

(7)  With a view to an effective implementation of their obligation to ensure sufficient and 
effective access to cash, Member States should regularly monitor the level of access to 
cash throughout their territory, in all their different regions, including urban and non-
urban areas, on the basis of common indicators which allow for comparisons between 
the  Member  States.  Common  indicators  could  include  factors  that  affect  access  to 
cash, such  as  density of  cash access points  in  relation to  population,  withdrawal  and 
deposit  conditions,  including  fees,  the  existence  of  different  networks  with  different 

15 
EU:C:2021:63, point 46.   
16 
EU:C:2021:63, points 67 and 68.  

See  judgment  of  26  January  2021  in  Joined  Cases  C-422/19  and  C-423/19,  Hessischer  Rundfunk, 

See  judgment  of  26  January  2021  in  Joined  Cases  C-422/19  and  C-423/19,  Hessischer  Rundfunk, 

EN 

11 

  EN 

                                                 
access  modalities  for  customers,  urban-rural  and  socio-economic  variations,  and 
access  difficulties  for  certain  population  groups.  If  in  the  light  of  their  assessment 
access  to  cash  is  deemed  sufficient  and  effective  on  their  territory,  Member  States 
would  not  need  to  adopt  specific  measures  in  relation  to  their  respective  obligation. 
However,  they  would  need  to  continue  monitoring  the  situation.  If  a  Member  State 
concludes that access to cash is not sufficient and effective in all or part of its territory, 
or  is  at  risk  of  deteriorating  in  the  absence  of  action,  appropriate  remedial  measures 
should  be  taken  to  remedy  the  situation,  such  as  geographic  access  requirements  on 
payment  service  providers  providing  cash  withdrawal  services  to  maintain  cash 
services at a sufficient number of their branch offices where they conduct business, or 
through an appointed agent for online only credit institutions,  or maintain a sufficient 
density of automated teller machines (ATMs) where they conduct business taking into 
account  a  good  geographic  spread  in  relation  to  population,  also  taking  into  account 
possible pooling of ATMs. Other remedial measures could include recommendations 
addressed to  non-credit institutions,  such as independent  ATM operators, retailers or 
post offices, encouraging to complement the cash services of banks.  

The  Commission  should  be  empowered  to  adopt  implementing  acts  on  a  set  of 
common  indicators  of  general  application  in  the  euro  area,  which  would  allow  the 
Member States to effectively monitor and assess the acceptance of payments in cash 
and  access  to  cash  throughout  their  territory,  in  all  their  different  regions,  including 
urban and non-urban areas. In view of the preparation of such implementing acts, the 
Commission should consult the European Central Bank.   

The  Commission  should  be  empowered  to  adopt  implementing  acts  addressed  to  a 
specific  Member  State  when  the  measures  proposed  by  that  Member  State  appear 
insufficient or in cases where, in spite of the findings of the annual report sent by that 
Member State, ex ante unilateral exclusions of cash are  undermining the principle of 
mandatory acceptance of payments in euro banknotes and coins and/or where access to 
cash  is  not  sufficient  and  effective.  Such  an  implementing  act  could  require  the 
Member State concerned to take measures such as those outlined in recitals 7 and 8, or 
measures that have been considered effective in other Member States in ensuring that 
the principles of mandatory acceptance of payments in cash or sufficient and effective 
access to cash are not undermined. 

In accordance with the principle of sincere cooperation, the Commission, the European 
Central  Bank  and  the  designated  national  competent  authorities  with  the  required 
powers  as  regards  acceptance  of  payments  in  cash  and  access  to  cash,  and  over  the 
cash-related market activities of the cash industry should closely collaborate on issues 
related  to  acceptance  of  payments  in  cash  and  access  to  cash.  A  regular  dialogue 
among  these  institutions  and  authorities,  based  notably  on  the  annual  reports  of 
Member  States  to  the  Commission  and  the  European  Central  Bank,  should  aim  at 
identifying  cases  of  widespread  ex  ante  unilateral  exclusions  of  cash  and  inadequate 
access to cash in specific national territories or regions. It would also aim at designing 
and  adopting  remedial  measures  that  Member  States  should  adopt  as  a  means  to 
comply with their obligations to ensure acceptance of cash and sufficient and effective 
access to cash.  

(8) 

(9) 

(10) 

(11) 

 In order to ensure that additional exceptions to the mandatory acceptance of euro cash 
may  be  introduced  at  a  later  stage  if  they  are  required,  the  power  to  adopt  acts  in 
accordance  with  Article  290  TFEU  should  be  delegated  to  the  Commission  to 
supplement  this  Regulation  by  introducing  additional  exceptions  to  the  principle  of 
mandatory acceptance for the euro area as a whole. The Commission may only adopt 

EN 

12 

  EN 

such  additional  exceptions  if  they  are  necessary,  proportionate  to  their  aim,  and 
preserve  the  effectiveness  of  the  legal  tender  status  of  euro  cash.  The  power  of  the 
Commission to adopt delegated acts for the introduction of additional exceptions to the 
mandatory  acceptance  of  accept  euro  cash  should  be  without  prejudice  to  the 
possibility  for  Member  States,  pursuant  to  their  own  powers  in  areas  of  shared 
competence,  to  adopt  national  legislation  introducing  exceptions  to  the  mandatory 
acceptance deriving from the legal tender status in accordance with the conditions laid 
down by the Court of Justice of the European Union in the judgment in Joined Cases 
C-422/19 and C-423/19.  It is of particular importance that the Commission carry out 
appropriate  consultations  during  its  preparatory  work,  including  at  expert  level,  and 
that those consultations be conducted in  accordance with  the principles laid  down in 
the  Interinstitutional  Agreement  of  13  April  2016  on  Better  Law-Making.  In 
particular,  to  ensure  equal  participation  in  the  preparation  of  delegated  acts,  the 
European  Parliament  and  the  Council  receive  all  documents  at  the  same  time  as 
Member  States'  experts,  and  their  experts  systematically  have  access  to  meetings  of 
Commission expert groups dealing with the preparation of delegated acts. 

In order to ensure uniform conditions for the provisions on the acceptance of payments 
in  cash  and  sufficient  and  effective  access  to  cash,  implementing  powers  should  be 
conferred on the Commission. Those powers should be exercised in accordance with 
Regulation (EU) No 182/2011 of the European Parliament and of the Council17. The 
advisory  procedure  should  be  used  for  the  adoption  of  the  implementing  acts  on  the 
acceptance of and access to cash as they concern measures with a low impact, namely 
indicators  for  monitoring  the  acceptance  of  and  access  to  cash,  or  acts  addressed  to 
individual  Member  States  which  in  certain  circumstances  may  need  to  adopt 
appropriate measures which would reflect the specificities of their national territories, 
regions  and  urban  areas,  in  accordance  with  Regulation  (EU)  No  182/2011  of  the 
European Parliament and of the Council. 

(12) 

(13)  This Regulation ensures full respect for the fundamental right of freedom to conduct a 
business and the fundamental right of consumer protection enshrined in Article 16 and 
38  of  the  Charter  of  Fundamental  Rights  of  the  European  Union  respectively.  This 
Regulation  concerns  the  preferred  payment  method  of  the  currency  that  has  legal 
tender  status,  which  citizens  legitimately  may  choose  to  settle  their  debts.  Thus,  the 
measures in  this Regulation  only  concern the way  enterprises receive payments. The 
interference with those fundamental rights is therefore indirect and very limited. It is 
justified by the general interest objective of ensuring the effectiveness of legal tender, 
and is proportionate to this objective. 

(14)  The  share  of  cash  payments  compared  to  electronic  payments  is  higher  for  certain 
vulnerable  groups  including  older  age  groups,  persons  with  disabilities,  and  people 
with limited digital skills and lower income levels. This   proposal   is consistent with 
the  European  Accessibility  Act18,  which  covers  automated  teller  machines  (ATMs). 
Furthermore, financially  excluded people,  such as the unbanked, asylum  seekers  and 
migrants,  who  may  not  be  able  or  willing  to  use  means  of  payment  supplied  by  the 
private sector, rely on cash as their payment method. Cash is considered to provide for 
a  clear  overview  of  expenses,  with  high  degrees  of  ease  of  use,  speed,  safety  and 
privacy. These vulnerable groups are more at risk of losing their access to a method of 

17 
18 

OJ L55, 28.2.2011, p.13. 
Directive  (EU)  2019/882  of  the  European  Parliament  and  of  the  Council  of  17  April  2019  on  the 
accessibility requirements for products and services (OJ L151, 7.6.2019, p.70).  

EN 

13 

  EN 

                                                 
payment  if  their  access  to  cash  deteriorates.  Thus,  this  Regulation  would  aim  to 
preserve financial inclusion of vulnerable groups with a dependency on cash payments 
by  ensuring  that  everyone  in  the  euro  area  would  be  free  to  choose  the  preferred 
payment  method  and  has  access  to  basic  cash  services,  while  supporting  Member 
States  in  continuing  their  policy  efforts  to  promote  digital  financial  inclusion,  for 
example through measures aimed to increase financial and specifically digital finance 
literacy  in  education  and  training  systems,  as  well  as  to  address  gaps  in  digital 
infrastructure, including in rural areas. 

(15) 

In accordance with the principle of proportionality, it is necessary and appropriate for 
the achievement of the basic objective of ensuring the acceptance of cash and access to 
cash  to  lay  down  the  necessary  rules.  This  Regulation  does  not  go  beyond  what  is 
necessary in order to achieve the objectives pursued, in accordance with Article 5(4) 
of the Treaty on European Union.  

HAVE ADOPTED THIS REGULATION: 

Article 1 
Subject matter 

This Regulation lays down detailed rules on the scope and effects of the legal tender of, and 
access  to,  euro banknotes  and coins, as provided for,  respectively, by Article 128(1)  TFEU 
and  by  Article  11  of  Regulation  (EC)  No  974/98,  in  order  to  ensure  its  effective  use  as  a 
single currency. 

Article 2 
Scope 

1. 

This Regulation applies to the settlement of pecuniary debts in so far as they are to 
be  settled  in  cash,  in  whole  or  in  part,  where  a  payment  obligation  exists  in 
accordance  with  the  applicable  law  or  established  legal  practices.  To  ensure  the 
effectiveness  of  the  legal  tender  of  cash,  this  Regulation  applies  also  to  ex  ante 
unilateral exclusion of payments in cash and to the access to cash. 

2. 

This  Regulation  shall  not  apply  to  payments  for  goods  or  services  purchased  at  a 
distance, including online. 

Article 3 
Definitions 

For the purposes of this Regulation, the following definitions apply: 

1. 

‘cash’ means euro banknotes and coins;  

EN 

14 

  EN 

 
 
 
 
 
 
 
 
 
 
 
2. 

3. 

4. 

5. 

6. 

7. 

8. 

1. 

2. 

3. 

‘cash industry’ means credit institutions offering payment accounts to customers and 
cash service providers involved in the managing of the distribution and circulation of 
euro banknotes and coins;  

‘credit institution’ means a credit institution as defined in Article 4 (1) of Regulation 
(EU) No 575/201319 of the European Parliament and of the Council; 

‘ex  ante  unilateral  exclusions  of  cash’  means  a  situation  when  a  retailer  or  service 
provider unilaterally excludes cash as a payment method for example by introducing 
a ‘no cash’ sign. In this case, the payer and payee do not freely agree to a means of 
payment for a purchase; 

’payer’ means any person who makes a payment in euro cash;  

’payee’ means any person who is the intended recipient of funds which have been the 
subject of a payment transaction in euro cash; 

‘face value’ means the denomination in euros of a euro banknote or coin, as printed 
on that banknote or minted on that coin; 

‘enterprise’ means a person engaged in an economic activity, irrespective of its legal 
form,  including  partnerships  or  associations  regularly  engaged  in  an  economic 
activity. 

Article 4 
Legal tender  

The  legal  tender  status  of  euro  banknotes  and  coins  shall  entail  their  mandatory 
acceptance,  at  full  face  value,  with  the  power  to  discharge  from  a  payment 
obligation. 

In accordance with the mandatory acceptance of cash, the payee shall not refuse euro 
banknotes and/or coins tendered in payment to comply with that obligation. 

In accordance with the acceptance at full face value of cash, the monetary value of 
euro  banknotes  and/or  coins  tendered  in  settlement  of  a  debt  shall  be  equal  to  the 

19 
Regulation  (EU)  No  575/2013  of  the  European  Parliament  and  of  the  Council  of  26  June  2013  on 
prudential  requirements  for  credit  institutions  and  investment  firms  and  amending  Regulation  (EU)  No 
648/2012, OJ L 176, 27.6.2013, p. 1–337. 

EN 

15 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
amount in euro indicated on the banknotes and/or coins. Surcharges on the settlement 
of debt with euro banknotes and coins shall be prohibited. 

4. 

In accordance with the power to discharge from a payment obligation, a payer shall 
be  able  to  discharge  from  a  payment  obligation  by  tendering  euro  banknotes  and 
coins to the payee.  

Article 5 
Exceptions to the principle of mandatory acceptance of euro banknotes and coins 

1. 

By  way  of  derogation  from  Article  4(2),  a  payee  shall  be  entitled  to  refuse  euro 
banknotes and coins in any of the following cases: 

(a)  where  a  refusal  is  made  in  good  faith  and  where  such  refusal  is  based  on 
legitimate  and temporary  grounds in  line with  the principle of proportionality 
in view of concrete circumstances beyond the control of the payee; 

(b)  where, prior to the payment, the payee has agreed with the payer on a different 

means of payment. 

For the purposes of point (a), the burden of proof to establish that such legitimate and 
temporary  grounds  existed  in  a  particular  case  and  that  the  refusal  was 
proportionate shall be on the payee.  

2. 

For  the  purposes  of  the  application  of  paragraph  1,  such  legitimate  grounds  may 
include: 

i. 

ii. 

Regarding high denomination banknotes, if the value of the banknote tendered 
is  manifestly  disproportionate  compared  to  the  value  of  the  amount  to  be 
settled.  

In  exceptional  cases,  if  the  enterprise  has  no  change  available  at  the  moment 
where the cash is tendered in payment, or if there would be not enough change 
available  as  a  result  of  that  payment  for  an  enterprise  to  carry  out  its  normal 
daily business transactions. 

Article 6 
Additional exceptions to the principle of mandatory acceptance of euro banknotes and 
coins of a monetary law nature   

The  Commission  is  empowered  to  adopt  delegated  acts  in  accordance  with  Article  10  to 
supplement this Regulation by identifying additional exceptions of a monetary law nature to 

EN 

16 

  EN 

 
 
 
 
 
 
 
 
 
 
 
the principle of mandatory acceptance. Those exceptions shall be justified by an objective of 
public interest and proportionate to that aim, shall not undermine the effectiveness of the legal 
tender  status  of  euro  cash,  and  shall  only  be  permitted  provided  that  other  means  for  the 
payment  of  monetary  debts  are  available.  When  preparing  those  delegated  acts,  the 
Commission shall consult the European Central Bank. 

Article 7 
Acceptance of payments in cash 

In order to  ensure the acceptance of cash in  accordance with  Article 4(2), Member 
States  shall  monitor  the  acceptance  of  payments  in  cash  and  the  level  of  ex  ante 
unilateral  exclusions  of  payments  in  cash  throughout  their  territory,  in  all  their 
different regions, including urban and non-urban areas, on the basis of the common 
indicators adopted by the Commission and shall assess the situation.  

Member  States  shall  notify  the  results  of  their  monitoring  and  assessment  of  the 
situation as regards the level of acceptance of payments in cash in accordance with 
Article 9(3). 

If a Member State considers that the level of acceptance of payments in cash in their 
territory  or  parts  thereof  undermines  mandatory  acceptance  of  euro  banknotes  and 
coins,  it  shall  set  out  the  remedial  measures  it  commits  to  take  in  accordance  with 
Article 9(4).  

Article 8 
Access to cash 

Member  States  shall  ensure  sufficient  and  effective  access  to  cash  throughout  their 
territory, in all their different regions, including urban and non-urban areas. In order 
to ensure sufficient and effective access to cash, Member States shall monitor access 
to  cash  throughout  their  territory, in  all their different  regions, including  urban and 
non-urban areas, on the basis of the common indicators adopted by the Commission 
and shall assess the situation. 

Member  States  shall  notify  the  results  of  their  monitoring  and  assessment  of  the 
situation as regards access to cash in accordance with Article 9(3). 

If  a  Member  State  considers  that  sufficient  and  effective  access  to  cash  is  not 
ensured, it shall set out the remedial measures it commits to take in accordance with 
Article 9(4).  

1. 

2. 

3. 

1. 

2. 

3. 

EN 

17 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
Article 9 
Procedural aspects 

1. 

2. 

3. 

4. 

5. 

With  a  view  to  implementing  the  obligations  set  out  in  Articles  7  and  8,  Member 
States  shall  designate  one  or  more  national  competent  authorities  with  the  required 
powers as regards acceptance of payments in cash and access to cash, and over the 
cash-related market activities of the cash industry.  

For the purposes of Articles 7 and 8, the Commission shall adopt implementing acts 
of  general  application  on  a  set  of  common  indicators  Member  States  shall  use  to 
monitor and assess the acceptance of payments in cash and access to cash throughout 
their  territory,  in  all  their  different  regions,  including  urban  and  non-urban  areas. 
Those implementing acts shall be adopted [within X months after the entry into force 
of this Regulation] in accordance with the advisory procedure referred to in Article 
11.  When  preparing  those  implementing  acts,  the  Commission  shall  consult  the 
European Central Bank. 

The  designated  national  competent  authorities  shall  notify  the  results  of  their 
monitoring  and  assessment  of  the  situation  as  regards  the  levels  of  acceptance  of 
payments in cash and access to cash, giving grounds and data for their assessment, in 
an annual report to be addressed to the Commission and the European Central Bank 
as referred to in Article 13.  

If  a  Member  State  considers  that  the  level  of  acceptance  of  payments  in  cash 
undermines mandatory acceptance of euro banknotes and coins or that sufficient and 
effective  access  to  cash  is  not  ensured,  it  shall  indicate  in  its  annual  report  the 
remedial measures it commits to take in order to comply with the obligations set out 
in  Articles  7  and  8.  The  remedial  measures  shall  enter  into  force  without  undue 
delay.   

The  Commission  shall  examine  the  annual  reports  in  close  consultation  with  the 
European  Central  Bank.  If  the  remedial  measures  proposed  by  a  Member  State 
pursuant to paragraph 4 appear insufficient, or if the Commission considers that the 
acceptance of cash payments or sufficient and effective access to cash in a Member 
State is not in line with the obligations set out in Articles 7 and 8 despite the findings 
of  the  annual  report,  the  Commission  shall  adopt  implementing  acts  providing  for 
adequate  and  proportionate  measures  that  shall  be  adopted  by  the  Member  State 
concerned within the deadline laid  down in the respective implementing  act.  Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  advisory  procedure 
referred to in Article 11. 

Article 10 

      Exercise of the delegation 

EN 

18 

  EN 

 
 
 
 
 
 
 
 
1. 

2. 

3. 

4. 

5. 

6. 

1. 

2. 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article. 

The power to adopt delegated acts referred to in Article 6 shall be conferred on the 
Commission for an indeterminate period of time from [date of entry into force of this 
Regulation]. 

The  power  to  adopt  delegated  acts  referred  to  in  Article  6  may  be  revoked  at  any 
time by the European Parliament or by the Council. A decision to revoke shall put an 
end to the delegation of the power specified in that decision. It shall take effect the 
day following the publication of the decision in the Official Journal of the European 
Union  or  at  a  later  date  specified  therein.  It  shall  not  affect  the  validity  of  any 
delegated acts already in force. 

Before adopting a delegated act, the Commission shall consult experts designated by 
the 
in  accordance  with 
each  Member  State 
Interinstitutional Agreement of 13 April 2016 on Better Law-Making. 

the  principles 

laid  down 

in 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A  delegated  act  adopted  pursuant  to  Article  6  shall  enter  into  force  only  if  no 
objection  has  been  expressed  either  by  the  European  Parliament  or  the  Council 
within a period of one month of notification  of that act to the European Parliament 
and the Council or if, before the expiry of that period, the European Parliament and 
the  Council  have  both  informed  the  Commission  that  they  will  not  object.  That 
period shall be extended by one month at the initiative of the European Parliament or 
of the Council. 

Article 11 
Committee procedure 

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 
committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply. 

EN 

Article 12 
Penalties 

19 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
Member States shall lay down the rules on  penalties [including financial penalties and non-
criminal  fines]  applicable  to  infringements  of  this  Regulation  and  shall  take  all  measures 
necessary to ensure that they are implemented. The penalties provided for shall be effective, 
proportionate and dissuasive. Member States shall, within one year after the entry into force 
of  this  Regulation,  notify  the  Commission  of  those  rules  and  of  those  measures  and  shall 
notify it, without delay, of any subsequent amendment affecting them. 

Article 13 
Annual reports  

1. 

Member States shall submit on an annual basis  a report to the Commission and the 
European Central Bank including information on the following aspects: 

(a) 

the  established  exceptions  to  the  principle  of  mandatory  acceptance  and  their 
application; 

(b)  detailed  data  and  assessment  of  the  situation  in  the  Member  State  as  regards 
acceptance of payments in cash and access to cash, and the remedial measures 
to be taken pursuant to Articles 7 and 8; 

(c) 

the implemented penalties including financial penalties and non-criminal fines. 

2. 

3. 

The first annual  report shall be submitted  one year after the entry into force of this 
Regulation. Subsequent annual reports shall be submitted yearly after the date of the 
entry into force of this Regulation. 

The  Commission  shall  examine  the  annual  reports  in  close  consultation  with  the 
European Central Bank. 

Article 14 
Duty of Member States to inform about remedies 

Member  States  shall  provide  natural  persons  and  enterprises  with  clear  information  on  the 
channels  and  effective  remedies  they  have  at  their  disposal  to  lodge  complaints  with 
competent national authorities about cases of unlawful refusal to accept cash and insufficient 
and ineffective access to cash. 

 Article 15 
Interaction between euro banknotes and coins and the digital euro 

1. 

Euro banknotes and coins and the digital euro shall be convertible into each other at 
par. 

EN 

20 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
2. 

Payees  of  a  monetary  debt  denominated  in  euro  shall  accept  payments  in  euro 
banknotes  and  coins  according  to  the  provisions  of  this  Regulation,  irrespective  of 
whether  they accept payments in  digital  euro in  accordance with  Regulation  [XXX 
on  the  establishment  of  the  digital  euro].  Where  the  acceptance  of  euro  banknotes 
and coins and the digital euro is mandatory in accordance with the provisions of this 
Regulation  and  Regulation  (XXX  on  the  establishment  on  the  Digital  Euro),  the 
payer is entitled to choose the means of payment  

Article 16 
Review 

By  [date-five  years  after  the  entry  into  force],  the  Commission  shall  carry  out  a  review  on  the 
operation and effects of this Regulation and submit a report to the European Parliament and to 
the  Council.  Member  States  shall  provide  the  Commission  with  necessary  information  for  the 
preparation of that report.  

Article 17 
Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in the Member States in 
accordance with the Treaties. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

21 

  EN