Circular dated September 15, 2020 regarding commissions and fees on banking services

Cairo, September 15, 2020

Dear Chairman of the Board of Directors,

Greetings,

With reference to the circular dated March 15, 2020, and its subsequent circulars regarding the procedures and precautionary measures to be taken to ensure the continuity of banks' operations and various activities to meet needs in light of the continuous monitoring of the banking market and banking customers' operations, and to provide further support and facilitation to citizens in order to benefit from the achievements realized during the past period of increasing customer inclination towards using electronic payment methods and channels, as well as to achieve the current trend of the Central Bank of Egypt and the banking sector towards transforming into a less cash-dependent society, please be kind enough to direct the implementation of the following:

First: The following instructions are to be implemented regarding commissions and fees applied to banking services as of the date of this circular until December 31, 2020:

1. Regarding Bank Transfers: Customers are to continue to be exempt from all expenses and commissions related to all bank transfer services in Egyptian Pounds.

2. Regarding Payment Services Using Mobile Phones: The following is to continue: 1-2. Issuance of electronic wallets for free, which extends to the creation of Virtual Cards (VCN) from the wallet. 2-2. Cancellation of all commissions and fees related to transfers between mobile phone accounts.

3. Regarding Bank Cards: Issuance of prepaid cards for citizens is to continue for free, provided that those cards are contactless "Contactless" when the bank begins issuing this type of card.

4. Regarding ATM Transactions for Bank Cards: The cancellation of fees and commissions related to cash withdrawal operations is to continue throughout the period mentioned above, with the issuing bank bearing those fees and commissions. This does not include credit card rewards.

5. Regarding Payment Services Using Contactless Payment Instruments: Banks licensed for electronic acceptance are obligated to cancel all fees and commissions borne by private sector merchants on transactions carried out using contactless payment instruments issued by banks operating in the Arab Republic of Egypt and without entering a PIN, with the issuing bank of the contactless payment instrument obligated to reimburse the acquiring bank for interchange fees during the period mentioned above.

Second: The exceptions contained in the instructions issued by the circular dated March 20, 2020, are to remain in effect regarding the provision of internet banking services to existing bank customers as of the date of this circular, with the customer obligated to complete what is necessary to comply with the bank's procedures for subscribing to that service during the period the bank deems appropriate, in light of its assessment of the risks associated with those services.

In light of the foregoing, it is essential to alert immediately to full compliance with the above.

Please accept the highest respect, Tarek Amer

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