2023-03-20 | CBE11.7

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CBE Regulation Book 11.7

The Central Bank of Egypt mandates that banks waive any fees for incoming transfers exceeding 2 Egyptian pounds, aligning with the rates of the Egyptian Payments Company. It authorizes individuals aged 16 to 21 to open bank accounts without parental consent, provided no legal impediment exists. The regulation permits guardians to withdraw salaries or pensions from blocked accounts upon court order and allows parents to open savings accounts or link savings instruments to their minor children's names.

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General Circulars

1 First: Digital Payments:

In the context of the state's trend towards computerizing all types of payments and relying on local payment networks, and in light of the provisions of Law No. 89 of 2017 establishing the National Payments Council, which aims to support and promote the use of deposits and electronic transactions and develop digital payments and supervise them.

And in order to achieve the same goals and effectiveness, in addition to protecting the rights of depositors and payment users, the Central Bank of Egypt has issued a circular regarding payment transactions and the applicable fees.

(EG-ACH) In the same context and under the circumstances that require protecting consumers, banks are prohibited from charging fees on incoming transfers that exceed the rate recommended by the relevant entity, "Egyptian Payments Company," which is two Egyptian pounds.

And in order to support financial inclusion for citizens in accordance with the state's policy and strategy, banks are required to apply any fees for payment transactions issued by the Central Bank of Egypt at the rate of the aforementioned Egyptian Payments Company.

Second: Opening Bank Accounts for Youth 2:

In light of the state's interest and special attention to youth and the Central Bank's commitment to supporting youth in banking operations and enabling the largest segment of this group to benefit from financial and banking services, and in light of the many inquiries regarding the legal status of opening bank accounts for youth within the age group of 16 to 21 years without the need for parental consent.

In the absence of any legal impediment to opening bank accounts for the aforementioned group, and relying on the provisions of the Civil and Family Laws on the subject, while taking into account that the financial products offered to them must be compatible with their capacity and the legal restrictions associated with them, as well as complying with the Central Bank's circulars and instructions dated December 5, 2019 1 and January 27, 2021 2.

1 The importance of focusing on the aforementioned youth group should be emphasized, and designing products and services that meet their needs should be designed, which will positively reflect on financial inclusion rates.

3 Third: Accounts Related to Guardianship over Property:

In light of the Central Bank of Egypt's attention to financial inclusion and protecting the rights of workers and customers, and working to provide conditions that enable citizens to conduct their financial and banking transactions, and in the context of addressing the difficulties and challenges facing citizens, especially women, regarding guardianship over property transactions, it was found that there are obstacles to conducting financial transactions on blocked accounts due to the complications related to guardianship over property in some cases that require a bank or legal representative, such as obtaining account statements, opening savings accounts, as well as the difficulty of withdrawing monthly salaries and accrued pensions.

And to facilitate the matter and facilitate it with the concerned parties, the Council has decided to allow the guardian to perform the following transactions:

  • Withdrawal of salaries or pensions upon request for a withdrawal order from the competent authority/court at any time, as long as the bank is not required to obtain periodic authorization.
  • Opening savings accounts for withdrawal at any bank of the guardian's choice, with emphasis on withdrawal based on an order from the authority.
  • Obtaining account statements for the guardian without the need to request authorization from the authority at any time.

Fourth: The Father Opening Accounts or Linking Savings Instruments in the Names of His Minor Children 4:

In the context of working to resolve the difficulties and challenges facing families during banking transactions, and in light of the receipt of many complaints to the Central Bank regarding the refusal of some banks to open accounts for their minor children or link savings instruments to them, or to conduct transactions on their accounts.

It is emphasized that the father is allowed to open savings accounts for his minor children or link savings instruments to their names, as the property opened or linked is considered part of the property opened or linked, provided that it is in the best interest of the child and serves his benefit (Article 3) of the Family Law on Guardianship over Property issued by Law No. 119 of 1952.

3 Periodic circular dated December 30, 2021 regarding accounts related to guardianship over property.

4 Circular of the Central Bank of Egypt dated March 19, 2023.

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