JPRM-2024-023-M — Reforming the Monetary System Rules contained in Resolution JPRM-2022-020-M

RESOLUTION No. JPRM-2024-023-M MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador prescribes that public servants and persons acting under a state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 of the same instrument states that Public Administration constitutes a service to the community governed by the principles of efficiency, quality, hierarchy, coordination, planning, among others;

That, the first paragraph of Article 303 aforementioned determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Branch and will be implemented through the Central Bank of Ecuador;

That, numeral 14 of Article 36 of the Organic Monetary and Financial Code, as a function of the Central Bank of Ecuador, states: "(…) Act as a fiscal, financial, and depository agent for public resources and provide banking services to entities in the public sector and the national financial system, according to the market remuneration determined by the Monetary Policy and Regulation Board";

That, Article 40 of the aforementioned Organic Code determines: "Public resources of institutions, agencies, and companies in the non-financial public sector shall be kept on deposit at the Central Bank of Ecuador, in accordance with the regulations issued by the Monetary Policy and Regulation Board. Entities of the national financial system and those qualified within the auxiliary payment systems shall participate in the collection of public resources, through collector accounts in the name of non-financial public entities, in accordance with the regulations issued by the Monetary Policy and Regulation Board. The balance of said accounts shall be transferred to the accounts corresponding to the respective public institution at the Central Bank of Ecuador, in accordance with the regulation issued for this effect. (…) Auxiliary payment systems shall not collect public resources in their own accounts. The Central Bank of Ecuador shall sanction the non-observance or failure to comply with the provisions of this article as a serious infringement";

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That, Article 47.1 of the aforementioned Code created the Monetary Policy and Regulation Board as part of the Executive Branch, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determines its composition;

That, Article 47.6 of the same Code, regarding the functions of the Monetary Policy and Regulation Board, among others, establishes: "1. Formulate policy in the monetary field and observe its application by the Central Bank of Ecuador, to preserve the integrity and sustainability of the dollarization monetary system and the financial system, in accordance with the provisions of this Code; (…) 12. Regulate the central payment system, as well as the regulation, permission, registration, surveillance, and supervision of auxiliary payment systems; (…) 25. Set the commissions and tariffs for services of the Central Bank of Ecuador (…)";

That, Article 47.7 of the aforementioned Code states that: "Acts of the Monetary Policy and Regulation Board enjoy the presumption of legality and shall be expressed through resolutions that shall have mandatory force (…)";

That, through Resolution No. JPRM-2022-020-M, of August 4, 2022, the Monetary Policy and Regulation Board issued the "Monetary System Rules"; reformed through Resolution No. JPRM-2024-008-M, of April 12, 2024;

That, Article 105 of the aforementioned Resolution establishes the tariff that Administrators of the Auxiliary Payment System apply for the collection of public funds;

That, numeral 8 of Article 21 of Resolution No. JPRM-2024-018-M, of September 4, 2024, defines Participants of the Auxiliary Payment System as follows: "It refers to financial entities, auxiliary service entities of the financial system: transactional, payment, network, and ATM entities, and card administrators; financial technology service entities: neobanks and digital credit granting entities; specialized societies for deposits and electronic payments (SEDPES); and administrators of the Auxiliary Payment System (ASAP), who, with prior authorization from the Central Bank of Ecuador, participate in the Auxiliary Payment System.";

That, numeral 6 of Article 23 of the aforementioned Resolution determines as one of the services that Participants of the Auxiliary Payment System may provide, with prior qualification and authorization from the Central Bank of Ecuador, "6. Collection of public resources";

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That, it is necessary to update the tariff that Participants of the Auxiliary Payment System will apply for the collection of public resources, in accordance with the current Organic Monetary and Financial Code and the regulation issued by the Monetary Policy and Regulation Board;

That, the Monetary Policy and Regulation Board, in an ordinary session held in mixed mode, on November 18, 2024, reviewed the proposal sent via memorandum No. BCE-BCE-2024-0251-M of November 13, 2024, by the General Manager of the Central Bank of Ecuador to the President of the Monetary Policy and Regulation Board; as well as, Technical Report No. BCE-GMPSN-2024-025/BCE-SSFN-2024-149, of November 12, 2024, and Legal Report No. BCE-GJ-037-2024 of November 12, 2024; and,

In exercise of its functions and in attention to Article 47.7 of the Organic Monetary and Financial Code, the Monetary Policy and Regulation Board resolves:

REFORM THE MONETARY SYSTEM RULES, CONTAINED IN RESOLUTION NO. JPRM-2022-020-M, REFORMED BY RESOLUTION NO. JPRM-2024-008-M

SINGLE ARTICLE. - Substitute Article 105 of Resolution No. JPRM-2022-020-M, with the following text:

"Art. 105.- Participants of the Auxiliary Payment System, authorized by the Central Bank of Ecuador for the Public Funds Collection service, may charge the following maximum tariffs for the provision of this service, depending on the channel used:

SERVICE NAME | CHANNEL | MAXIMUM TARIFF Public resource collections | Physical | USD 0.51 Public resource collections | Electronic | USD 0.27

*The tariffs will include the corresponding value for Value Added Tax (VAT). Note: Physical channels include teller windows, ATMs, and point-of-sale terminals, where transactions are conducted in person. Electronic channels comprise mobile applications and online payment platforms that use technological devices to allow operations with electronic payment methods and electronic wallets."

FINAL PROVISION. - This resolution shall enter into force from its issuance, without prejudice to its subsequent publication in the Official Register.

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The publication of this resolution on the institutional website is entrusted to the General Secretariat of the Central Bank of Ecuador.

NOTIFY AND PUBLISH. - Given in the Metropolitan District of Quito, on November 18, 2024.

THE PRESIDENT Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary Policy and Regulation Board, in the Metropolitan District of Quito, on November 18, 2024.- I CERTIFY. ADMINISTRATIVE SECRETARY Attorney MARÍA ALEXANDRA GUERRERO DEL POZO