2024 marks a significant year for Romania’s financial landscape, as major changes take effect impacting cash transactions and salary payments. These changes, stemming from Law 406/2023 (Cash Law), Emergency Ordinances 98/2023 and 115/2023, aim to modernize the financial system, combat tax evasion, and boost transparency.
One of the most significant changes is the establishment of a daily limit of 10,000 lei for cash transactions between legal entities and individuals. This applies to purchases, services, and other financial dealings. Additionally, Emergency Ordinance 115/2023 mandates all transactions exceeding this limit to be conducted through non-cash methods. The law further restricts cash-in-hand for businesses, limiting cash register balances to 50,000 lei and daily settlement advances to 1,000 lei.
Initially proposed to ban cash salaries, Law 406/2023 was adjusted to offer flexibility. Now, employees can choose to receive their wages, pensions, and allowances in either cash or through non-cash methods. This reflects an acknowledgment of Romania’s diverse economic realities, particularly in rural areas where cash remains prevalent.
While allowing cash salaries, the law obligates merchants to accept at least one non-cash payment method. This encourages the use of electronic transactions, offering benefits like increased security, transparency, and easier record-keeping. However, Prime Minister Ciolacu has emphasized the need for gradual change, recognizing that “the Romanian economy, especially in rural areas, is not yet ready for a drastic reduction in the use of cash.”
These changes represent a significant step towards a more modern and transparent financial system in Romania. While some may see them as an inconvenience, the potential benefits in terms of economic efficiency, tax compliance, and financial security are undeniable. By implementing these new regulations in a measured and adaptable manner, Romania can strike a balance between modernization and respect for its diverse economic realities. The year 2024 marks a turning point for cash in Romania, and its success will depend on effective communication, education, and continued adaptation to ensure a smooth transition for all citizens and businesses.
