When are entities obliged to use cashless payment methods?

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Thu, 03 Dec 2020 - 12:49 GMT

E-payment methods - FILE

E-payment methods - FILE

CAIRO – 3 December 2020: The law regulating the cashless payment methods is one of the legislations that aim to achieve more financial inclusion, and continues Egypt’s efforts towards incorporating digital transformation.

 

There is a global trend to adopt policies that reduce cash dealings, and encourage the use of banking e-financial methods.

 

The law set some regulations and circumstances upon which state authorities and agencies start applying cashless payment methods. According to the law, cashless payment methods are used when:

 

1- Paying dues to suppliers, contractors, service providers and other contracting parties.

 

2- Granting funds.

 

3- Distributing profits resulting from contribution in companies’ capital or investment funds.

 

4- Paying dues of syndicate members, participants in private insurance funds and insurance compensation.

 

5- Disbursing subsidies, donations through associations and institutions, civil work or other legal persons or establishments stipulated in Article (2) of this law.

 

6- Paying in suits of purchase, lease, exploitation, or usufruct of land or real estate, or express transportation vehicles by state authorities and agencies, legal persons and establishments stipulated in Article (2) of this law.

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