JPRM-2024-008-M — Reforming the Monetary System Rules

THE MONETARY POLICY AND REGULATION BOARD
WHEREAS:
That the Constitution of the Republic of Ecuador, in Article 226, stipulates that public officials and persons acting under state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law; That Article 227 ibidem states that the Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others; That the first paragraph of Article 303 ut supra determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Branch and shall be implemented through the Central Bank of Ecuador; That Article 36.1 of the Organic Monetary and Financial Code establishes: “The Central Bank of Ecuador may charge commissions or fees for the services it provides and the functions it fulfills in accordance with the resolutions issued by the Monetary Policy and Regulation Board. Such commissions or fees shall be published on the institutional website.” That Article 47.1 of the aforementioned Code created the Monetary Policy and Regulation Board as part of the Executive Branch, responsible for formulating monetary policy, as the highest governing body of the Central Bank of Ecuador, and determined its composition; That Article 47.6 ibidem, regarding the functions of the Monetary Policy and Regulation Board, among others, establishes: “1. Formulate policy in the monetary sphere and monitor 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, oversight, and supervision of auxiliary payment systems; (…) 25. Set the commissions and fees for services of the Central Bank of Ecuador”; That Article 99 ut supra states: “Payment means are checks, electronic wallets, and electronic payment means that include transfers for payment or collection, credit, debit, prepaid, reloadable or non-reloadable cards, electronic wallets with the category of fully digital banking that comply with the liquidity fund and reserve requirements, and deposit insurance, that comply with the liquidity fund and reserves, and other payment means based on technology, subject to a license from the Superintendency of Banks and under the terms determined and regulated by the Monetary Policy and Regulation Board”.

_______________________________ liquidity, reserve requirements, and deposit insurance, that comply with the liquidity fund and reserves, and other payment means based on technology, subject to a license from the Superintendency of Banks and under the terms determined and regulated by the Monetary Policy and Regulation Board”. That Article 103 of the aforementioned Code states: “The national payment system comprises the set of policies, rules, instruments, procedures, and services through which resource transfers managed through payment means and the settlement of securities are carried out, directly or indirectly, among its various participants. The national payment system is integrated by the central payment system and the auxiliary payment systems. The Central Bank of Ecuador shall establish the authorization, operation, registration, and information disclosure requirements for these systems. The corresponding fee regime shall be regulated by the Monetary Policy and Regulation Board. The reports issued by officials and employees of the Central Bank of Ecuador, in the exercise of their national payment system supervision functions, shall be written and confidential, as well as the documents that the General Manager qualifies as such, in order to safeguard system stability. These reports shall not be disclosed to third parties, in whole or in part, by the bank, the supervised entity, or any person acting on their behalf, except when required by the Monetary Policy and Regulation Board or when indications of criminal liability have been determined, which must be reported to the Attorney General’s Office”; That Article 104 of the same Code establishes: “The central payment system is the set of policies, rules, instruments, procedures, and services articulated and coordinated, under the responsibility of the Central Bank of Ecuador, through which participant resource transfers, as well as their clearing and settlement, are carried out. The Monetary Policy and Regulation Board shall establish the requirements and conditions for access to the central payment system”; That Article 116 of the aforementioned Code determines: “The Central Bank of Ecuador shall perform the function of Custodian and Centralized Depository for the Clearing and Settlement of public and private securities, including those issued by the Central Bank of Ecuador. That, through Resolution No. JPRM-2022-020-M, of August 4, 2022, the Monetary Policy and Regulation Board issued the “Monetary System Rules”, which include provisions regarding the Central Payments System, Checks, Centralized Securities Depository, and Central Bank of Ecuador fees;

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That, through Resolution No. JPRM-2022-029-M, of November 29, 2022, the Monetary Policy and Regulation Board resolved “To Reform the Regulation of the Monetary System Rules issued through Resolution No. JPRM-2022-020-M”, thereby reforming the pertinent part of Article 109, Section III: “Of the fees”, of Chapter II: “Rules for the Centralized Securities Depository of the Central Bank of Ecuador”; That, through Resolution No. JPRM-2023-004-M, of February 28, 2023, the Monetary Policy and Regulation Board resolved to issue the “Fees for Information Certification Entity Services and Issuance of Digital or Electronic Certificates”; That it is necessary to adapt the provisions contained in the aforementioned Resolution No. JPRM-2022-020-M, of August 4, 2022, regarding the services and fees currently provided by the Central Bank of Ecuador, in accordance with the current Organic Monetary and Financial Code; That the Monetary Policy and Regulation Board, in an ordinary session held via mixed modality on April 12, 2024, reviewed the proposal sent through Memorandum No. BCE-BCE-2024-0081-M, of April 9, 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-SGSERV-2024-021/ BCE-DNSP-2024-239/ BCE-DNSF-2024-1064/ BCE-DNDCV-2024-025/BCE-DNEM-2024-158 of April 5, 2024, and Legal Report No. BCE-CGJ-022-2024, of April 8, 2024; and, In exercise of its functions and in accordance with 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
Article 1.- Replace the definition “Online Collection System (SCL)” determined in Article 2 of Section I: “Scope and definitions”, of Chapter I: “Rules for the central payment system”, with the following text:
“Online Package Transfer System (TPL). - It is the mechanism that allows entities that maintain accounts at the Central Bank of Ecuador to channel online collection and payment orders charged to the accounts they hold at the CBE”.

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Article 2.- Replace the definition “Public Sector System (SSP)” established in Article 2 of Section I: “Scope and definitions”, of Chapter I: “Rules for the central payment system”, with the following text:
“Payment Service System (SSP). - It is the mechanism that allows the Central Bank of Ecuador to participate on behalf of entities that maintain current accounts at the CBE and that do not participate directly in the SPI”.
Article 3.- Replace the definition “Public Collection Order System (SOCP)” contained in Article 2 of Section I: “Scope and definitions”, of Chapter I: “Rules for the central payment system”, with the following text:
“Public Collection Orders System (OCP). - It is the mechanism that allows the Central Bank of Ecuador to participate on behalf of entities that do not participate directly in the SCI”.
Article 4.- Replace the first paragraph of Article 3 of Section II: “Participants and components of the central payment system”, of Chapter I: “Rules for the central payment system”, with the following text:
“Art. 3.- Participants: Entities that maintain one or more accounts at the Central Bank of Ecuador participate in the Central Payments System (CPS)”.
Article 5.- Replace Article 4 of Section II: “Participants and components of the central payment system”, of Chapter I: “Rules for the central payment system”, with the following text:
“Art. 4.- Participation of the Central Bank of Ecuador: The Central Bank of Ecuador shall act as a participant in the Central Payments System, on behalf of a third party, through the following specialized systems:

1. Payment Service System (SSP)
2. Public Collection Orders System (OCP)
3. Foreign Payment Orders System (OPE)”.
   Article 6.- Replace Article 11 of Section III: “Non-repudiation in the central payment system”, of Chapter I: “Rules for the central payment system”, with the following text:
   “Art. 11.- Irrevocability: Transfer orders accepted in the Central Payments System, as well as clearing chamber results, once settled in participants' accounts, shall be irrevocable, binding, enforceable, and opposable to third parties, and may not be suspended, revoked, or nullified. For Central Payments System systems operating in real time, the aforementioned quality takes effect once the operation is settled”.
   Article 7.- Replace Article 30 of Subsection I: “Definition and scope”, of Section VIII: “Of the interbank payment system”, of Chapter I: “Rules for the central payment system”, with the following text:
   “Art. 30.- Parameters: Parameters for the classification of interbank payment orders shall be established by the Central Bank of Ecuador”.
   Article 8.- Replace Article 34 of Subsection I: “Definition and scope”, of Section VIII: “Of the interbank payment system”, of Chapter I: “Rules for the central payment system”, with the following text:
   “Art. 34.- Crediting: Once payment instructions are validated and reconciled by the receiving entities, the corresponding amounts shall be credited to the Beneficiaries' accounts, in accordance with Clearing Chamber schedules; participating entities must maintain sufficient funds in their current accounts at the Central Bank of Ecuador to honor their obligations arising from the interbank payment order clearing and settlement process in the IPS”.
   Article 9.- Replace Article 35 of Subsection I: “Definition and scope”, of Section VIII: “Of the interbank payment system”, of Chapter I: “Rules for the central payment system”, with the following text:
   “Art. 35.- Status of interbank payment orders: Receiving entities must report to the Central Bank of Ecuador the final status of interbank payment orders, in the formats and schedules established by the Central Bank of Ecuador; as well as be liable for interbank payment orders processed through the IPS”.
   Article 10.- Replace Article 56 of Subsection III: “Of the collection of service fees”, of Section IX: “Of the interbank collection system”, of Chapter I: “Rules for the central payment system”, with the following text:
   “Art. 56.- Collection order processing service: Collecting entities, based on the collection orders sent, shall pay the Central Bank of Ecuador daily for the collection order processing service, an amount equivalent to the result of multiplying the number of collection orders sent by the rate established in this Resolution. The cost calculation process for this service shall be carried out daily and debited from the current accounts that collecting entities maintain at the Central Bank of Ecuador”.
   Article 11.- Replace Article 75 of Subsection III: “Of the collection of service fees”, of Section XI: “Specialized clearing chamber”, of Chapter I: “Rules for the central payment system”, with the following text:
   “Art. 75.- Calculation process: The cost calculation process for this service is carried out daily and debited from the current accounts of the national financial system, qualified as Payment Auxiliaries registered at the Central Bank of Ecuador for this purpose. For Payment Auxiliary Systems, they must register a current account with any participating entity of the IPS. For these entities, the rate shall be charged through the Interbank Collection System, within the first five (5) business days of the following month for the daily rate, and within the first fifteen (15) days of January each year for the annual rate”.
   Article 12.- Replace Article 168 of Section I: “The Central Bank of Ecuador”, of Chapter V: “Rates, fees for services and other concepts related to banking operations”, with the following text:
   “Art. 168.- Rates for services of the Central Bank of Ecuador: The Central Bank of Ecuador shall charge its clients for the provision of banking services, the rates, fees, and postage included in ANNEX 1 of this resolution.”
   Article 13.- Replace Article 185, of Section V: “Use of the Certificate and of the Keys” of Chapter VI: “Of the Information Certification Entity and Issuance of Digital or Electronic Certificates Service”, with the following text:
   “Art. 185.- Electronic signature levels: The digital electronic signature certificates issued by the Central Bank of Ecuador as an Information Certification Entity have two signature levels and shall serve for all purposes, these are:
4. Electronic signature certificate for natural persons; and,
5. Electronic signature certificate for legal entities”.

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Article 14.- Amend Article 192 of Chapter VII: “Fees for the use of payment means – Public and Private Financial Entities” where it says Annex 1 to Annex 2.
Article 15.- Amend Article 193 of Chapter VII: “Fees for the use of payment means – Entities of the Financial, Popular and Solidary Sector” where it says Annex 2 to Annex 3.
Article 16.- Replace Article 203 of Subsection II: “Of the issuance and form”, of Section I: “The general rules of the check”, of Chapter IX: “Of checks”, with the following text:
“Art. 203.- Checks drawn on a public institution: A check drawn in favor of or to the order of a public institution may only be received by deposit into a collecting account of that institution at correspondent entities of the Central Bank of Ecuador. The financial entity that receives a deposit of this nature and credits it to an account that does not belong to that public institution shall be liable for the payment”. GENERAL PROVISIONS:
FIRST. - Entities acting as originators in the Interbank Payment System must keep their transfer systems updated with the list of IPS participating entities published by the Central Bank of Ecuador. Likewise, originators of an interbank electronic transfer, regardless of the payment infrastructure used, must make available to the originating client the list of participating entities, the service rate, and the crediting times to the final beneficiary's account, and must be previously accepted by the client or partner, for each transfer. SECOND. - Renumber Annexes 1 and 2 referenced in Articles 192 and 193 of Resolution No. JPRM-2022-020-M to 2 and 3. THIRD. - In Chapter I “Rules for the central payment system” of Resolution No. JPRM-2022-020-M, replace “Participante” with “Partícipe” and “Participantes” with “Partícipes”. SINGLE TRANSITORY PROVISION. - Participating entities of the Interbank Payment System, within a period of four (4) months, must update their transfer systems to comply with what is stipulated in the First General Provision.

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REPEALING PROVISIONS:
FIRST. - Repeal the definitions “Wholesale Clearing Chamber or High-Value Payment” and “Retail Clearing Chamber or Low-Value Payment” from Article 2 of Section I: “Scope and definitions”, of Chapter I: “Rules for the central payment system”, of Resolution No. JPRM-2022-020-M. SECOND. - Repeal Article 31 of Subsection I: “Definition and scope”, of Section VIII: “Of the interbank payment system”, of Chapter I: “Rules for the central payment system” of Resolution No. JPRM-2022-020-M. THIRD. - Repeal Article 36 of Subsection I: “Definition and scope”, of Section VIII: “Of the interbank payment system”, of Chapter I: “Rules for the central payment system” of Resolution No. JPRM-2022-020-M. FOURTH. - Repeal Article 39 of Subsection I: “Definition and scope”, of Section VIII: “Of the interbank payment system”, of Chapter I: “Rules for the central payment system”, of Resolution No. JPRM-2022-020-M. FIFTH. - Repeal Article 49 of Subsection I: “Definition and scope”, of Section IX: “Of the interbank collection system”, of Chapter I: “Rules for the central payment system”, of Resolution No. JPRM-2022-020-M. SIXTH. - Repeal Subsection II: “Requirements”, of Section X: “Of the online payment system”, of Chapter I: “Rules for the central payment system”, of Resolution No. JPRM-2022-020-M. SEVENTH. - Repeal Article 67 of Subsection I: “Definitions and scope”, of Section XI: “Specialized clearing chamber”, of Chapter I: “Rules for the central payment system”, of Resolution No. JPRM-2022-020-M. EIGHTH. - Repeal Section III: “Of the Rates”, of Chapter II: “Rules for the Centralized Securities Depository of the Central Bank of Ecuador”, of Resolution No. JPRM-2022-020-M. NINTH. - Repeal Article 204 of Subsection II: “Of the issuance and form”, of Section I: “The general rules of the check”, of Chapter IX: “Of checks” of Resolution No. JPRM-2022-020-M.

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TENTH. - Repeal Article 258 of Subsection X: “General provisions”, of Section I: “The general rules of the check”, of Chapter IX: “Of checks” of Resolution No. JPRM-2022-020-M.
ELEVENTH. - Repeal Resolution No. JPRM-2022-029-M, of November 29, 2022, in which it was resolved “To Reform the Regulation of the Monetary System Rules issued through Resolution No. JPRM-2022-020-M”.
TWELFTH. - Repeal Resolution No. JPRM-2023-004-M, of February 28, 2023, in which it was resolved to issue the “Fees for Information Certification Entity Services and Issuance of Digital or Electronic Certificates”.
FINAL PROVISION. - This resolution shall enter into force upon its issuance, without prejudice to its subsequent publication in the Official Register.
Entrust its publication on the institutional website to the Document Management and Archive Directorate of the Central Bank of Ecuador.
COMMUNICATE AND PUBLISH. - Given in the Metropolitan District of Quito, on April 12, 2024.
THE PRESIDENT
Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN
The preceding resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary Policy and Regulation Board, in the Metropolitan District of Quito, on April 12, 2024.- I CERTIFY.
ADMINISTRATIVE SECRETARY
LAW. MARÍA ALEXANDRA GUERRERO DEL POZO

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ANNEX 1: RATES, FEES FOR SERVICES AND OTHER CONCEPTS RELATED TO BANKING OPERATIONS

CONCEPT	RATE/FEE
PAYMENT MEDIA AND NATIONAL SERVICES DEPARTMENT
1. Banking Service Contracts
Contracts signed by the CBE with the Ecuadorian State and other public sector entities (except those related to the issuance of internal debt instruments), with original terms of:
a. Up to 3 years: 0.25% of the dividend
b. Over 3 years: 0.50% of the dividend
For active loans in which the CBE acts as fiscal and financial agent and executing agency, the rates agreed upon in each agreement shall be respected.
2. Fund transfers between accounts at the CBE
a. Received through the counter with forms: USD 2.40
b. Received through official letters for distribution of budget allocations and others: USD 1.20
c. Automatic transfer orders issued by public sector account holders: 1% of the transferred value
d. Processed through the Bilateral Credit Lines System
1. Fund transfers derived from the execution of Credit Lines registered in the LBC System: USD 2.40
Note: Fee borne by the beneficiary entity of the fund transfer
e. For international remittance transfers to financial entities: USD 0.10 per transaction
f. For receipt of remittances: USD 0.43 per remittance from abroad
Note: Fee borne by the international remittance-sending entity.
g. For receipt, distribution, and settlement of remittances: USD 0.17 per remittance from abroad
Note: Fee borne by the national financial entity. Commissions remitted by the remittance-sending entity in favor of national financial entities shall be distributed by the Central Bank of Ecuador, in accordance with the respective remittance service agreements.
3. Information delivery services
a. Information services through electronic channels: USD 120.00
Note: Monthly fee and borne by the account holder
b. Information and notification services related to reserve requirements: USD 60.00
Note: Monthly fee and borne by the account holder
c. Delivery of account statements upon account holder request
1. Via electronic mailbox: USD 60.00
Note: Monthly fee and borne by the account holder
2. Printed paper report: USD 3.60
Note: Fee applied per issuance and borne by the account holder
3. Electronic way (email, Quipux, Platform, monthly charge...