EATS Fees and Penalties Directive No. EATSO/01/2022

# ETHIOPIAN AUTOMATED TRANSFER SYSTEM (EATS) OPERATIONS

## EATS Fees and Penalties Directive No. EATSO/01/2022

Whereas, it is important to ensure the safety, efficiency, reliability and smooth operation of Ethiopian Automated Transfer System (EATS);

Whereas, it is essential that the National Bank has to improve its service quality with a view to satisfy its customers;

Whereas, it is important to share costs related to EATS among participants;

Whereas, it is important to ensure that all participants comply with rules and guidelines governing EATS;

Now, therefore in accordance with Article 4(2)(d)/2/, 30, 34 and 37(2) of the National Payment System Proclamation No. 718/2011, the National Bank of Ethiopia has issued this Directive.

### 1. Short title

This Directive may be cited as “EATS Fees and Penalties Directive No. EATSO/01/2022”

### 2. Definitions

For the purpose of this Directive,

#### 2.1. “Addis Ababa Check Clearing Office (ACCO)” means a clearing house located in the National Bank where participants exchange physical checks during the operating day;

#### 2.2. “end of settlement cycle” means an EATS event where the daily EATS cycle is ended and activities listed under Article 71 of system rules are executed;

#### 2.3. “EATS” means a clearing and settlement system that combines the functions of Real Time Gross Settlement (RTGS) for high value/urgent payments with those of an Automated Clearing House (ACH) for bulk/low value payments;

#### 2.4. “e-token” means a device in which digital certificate is configured by the National Bank and enables the user to access EATS;

#### 2.5. “low value payment” means payment instruction via credit transfers, direct debits, and cheques) which can be submitted to EATS individually or in bulk;

#### 2.6. “net settlement instruction (NSI)” means a payment instruction that determines the net settlement position of two or more participants;

#### 2.7. “operating day” means any day in which EATS is open for clearing and settlement of transactions between participants according to the system rules;

#### 2.8. “operating hours” means the hours in which the EATS is operational during the operating day.

#### 2.9. “participant” means a financial institution which, in accordance with EATS rules, is making direct or indirect participation in the System;

#### 2.10. “real-time gross settlement systems (RTGS)” means the system that processes real-time settlement of payments, transfer instructions or other obligations individually on a transaction-by-transaction basis, which includes customer to customer payment (MT103), financial institution to financial institution (MT202), participant debit and credit (MT204 & MT205);

#### 2.11. “system” means EATS;

#### 2.12. “system rules” means EATS rules.

### 3. Scope of the Directive

This Directive shall apply to all participants of EATS and ACCO.

### 4. Fees

#### 4.1. An applicant applying to join the EATS shall pay joining fee of Birr 50,000 (Fifty Thousand Birr).

#### 4.2. A participant shall pay annual EATS membership fee of Birr 30,000 (Thirty Thousand Birr).

#### 4.3. A participant sending RTGS transaction shall pay standard RTGS transaction fee of Birr 50 (Fifty Birr) per transaction.

#### 4.4. A participant sending low value payment shall pay standard bulk transaction fee of Birr 5 (Five Birr) per item.

#### 4.5. A participant sending a net settlement instruction (NSI) shall pay a net settlement instruction processing fee of Birr 250 (Two Hundred Fifty Birr) per NSI.

#### 4.6. A participant requesting for new EATS e-token certificate configuration shall pay e-token certificate configuration fee of Birr 10,000 (Ten Thousand Birr) per e-token certificate.

#### 4.7. A participant requesting for EATS e-token certificate renewal or password reset services shall pay EATS e-token certificate renewal or password reset fee of Birr 5,000 (Five Thousand Birr)

#### 4.8. A participant requesting for EATS user password reset shall pay EATS user password reset fee of Birr 20,000 (Twenty Thousand Birr) per user.

#### 4.9. A participant participating in ACCO shall pay annual membership fee of Birr 100,000 (One Hundred Thousand Birr).

### 5. Incentives

#### 5.1. A participant sending and settling RTGS and low value transactions before 10:30AM of the operating day may be entitled to early hour settlement discount of 10% (ten percent) of the standard fee per transaction.

#### 5.2. A participant sending and settling more than 10,000 (Ten Thousand) RTGS transactions and 50,000 (Fifty Thousand) low value payment items during the operating day may be entitled to high volume payment instruction discount of 10% (ten percent) of the standard fee per transaction.

### 6. Penalties

#### 6.1. Unless and otherwise a specific financial penalty is provided for the violation of article of the system rules a participant violating the System rules shall pay a penalty of Birr 30,000 (Thirty Thousand Birr) per violated rule.

6.2. The National Bank may apply its own highest short term interest rate in the absence of overnight loan or deposit interest rate to calculate for the penalty stated under Articles 85(2&3) and 102(d) of the system rules.

6.3. A participant sending RTGS transaction to the system without having sufficient fund and if the transaction is cancelled the participant shall pay transaction cancellation charge of Birr 30,000 (Thirty Thousand Birr) per cancelled transaction.

6.4. A participant delaying to credit the beneficiary’s account for more than 24 (Twenty four) operating hours after receiving a payment instruction from EATS shall pay transaction delaying charge of Birr 30,000 (Thirty Thousand Birr) per transaction.

6.5. A participant delaying to send a payment instruction to the EATS for more than 6 (six) operating hours after receiving payment instruction from customer shall pay transaction delaying charge of Birr 20,000 (Twenty Thousand Birr) per day and transaction.

6.6. A participant returning payment instruction due to unjustifiable and/or payment return other than return reasons stipulated by the National Bank of Ethiopia shall pay a penalty of Birr 30,000 (Thirty Thousand Birr) per transaction.

7. Surcharge

7.1. A participant sending RTGS transaction after 4:00 PM of the operating day shall pay late hour settlement charge of 20% (twenty percent) of the standard transaction fee.

7.2. A participant requesting system operating hour extension shall pay operating hour extension fee of Birr 10,000 (Ten Thousand Birr).

7.3. No participant shall send any transaction to the system during extended operating hour, except a participant who requested the extension of operating hour or the National Bank.

8. Fees Settlement

8.1. A participant shall pay annual membership fees in the first month of every fiscal year and submit the proof of payment to the National Bank.

8.2. Membership of an EATS and/or ACCO participant who fails to pay annual membership fees in accordance with sub article 8.1 of this Article may be revoked.

8.3. The National Bank shall calculate and settle fees and charges other than annual membership and system joining fee in accordance with the EATS rules.

9. Effective Date

This Directive shall enter into force as 3rd day of October 2022.

Annex I Fees and Charges Summary Schedule

S. No	Type of Fee, Charge and Penalty	Proposed Fee & Charge	Amount in Words
1.	Services Fees /Charges
1.1.	EATS Joining Fee	Birr 50,000.00	Fifty Thousand Birr
1.2.	Annual EATS Membership Fee	Birr 30,000.00	Thirty Thousand Birr
1.3.	Annual Addis Ababa Check Clearing Office (ACCO) membership fee	Birr 100,000.00	One Hundred Thousand Birr
1.4.	New E-token, EATS certificate configuration fee	Birr 10,000.00	Ten Thousand Birr
1.5.	Ethiopian Automated Transfer System (EATS) User Passwords Reset Fee	Birr 20,000.00	Twenty Thousand Birr
1.6.	E-token renewal or password reset services Fee	Birr 5,000.00	Five Thousand Birr
2.	Transaction Fee
2.1.	Standard RTGS transaction fee (per transaction)	Birr 50.00	Fifty Birr
2.2.	Low Value Payments transaction fee (per item)	Birr 5.00	Five Birr
2.3.	NSI processing fee (per NSI)	Birr 250.00	Two Hundred Fifty Birr
3.	Penalties
3.1.	Penalty for non-compliance with EATS system rules (per violation of article or sub-article of the system rules)	Birr 30,000.00	Thirty Thousand Birr
3.2.	Cancellation of payment due to insufficient fund (per transaction)	Birr 30,000.00	Thirty Thousand Birr

3.3.	Delaying to send payments after receiving payment instruction from customers (per transaction or per item) and per day	Birr 20,000.00
3.4.	Delaying to credit the beneficiary’s account after receiving a payment instruction from EAIS	Birr 30,000.00
3.5.	Returning payment instruction with unjustified reasons (per transaction or per item)	Birr 30,000.00
4.	Incentives
4.1.	Early-hour settlement discount	10% discount of standard transaction fee
4.2.	High volume payment instruction discount	10% discount of standard transaction fee
5.	Surcharge
5.1.	Late-hour settlement charge	20% of standard transaction fee
5.2.	Operating hour extension charge	Birr 10,000.00 per request
		Ten Thousand Birr per request
		Twenty percent of standard transaction fee
		Ten percent discount of standard transaction fee
		Thirty Thousand Birr
		Thirty Thousand Birr