Resolution No. JPRM-2025-006-M: Codification of Monetary Policy Resolutions and Operations of the Central Bank of Ecuador Issued by the Monetary and Regulatory Policy Board

RESOLUTION NO. JPRM-2025-006-M

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RESOLUTION NO. JPRM-2025-006-M
THE MONETARY AND REGULATORY POLICY BOARD
CONSIDERING:
That, Article 226 of the Constitution of the Republic of Ecuador prescribes that public servants and persons acting under a state power shall exercise only the competencies and faculties attributed to them in the Constitution and the Law; That, Article 227 ibid states that 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 of the Magna Carta determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive faculty of the Executive Function and shall be implemented through the Central Bank of Ecuador; That, the second paragraph of the Fourth Transitory Provision of the Organic Law for the Strengthening of Protected Areas establishes that "(…) The structure and functions of the Financial Policy and Regulation Board and the Monetary Policy and Regulation Board, established in the Organic Monetary and Financial Code before June 26, 2025, shall remain in effect until the designation of the members of the Financial and Monetary Policy and Regulation Board by the National Assembly. (…)"; That, Article 47.1 of the Organic Monetary and Financial Code created the Monetary and Regulatory Policy Board as part of the Executive Function, responsible for monetary formulation, as the highest governing body of the Central Bank of Ecuador, and determined its operation and composition; That, Article 47.6 of the same Code, regarding the functions of the Monetary and Regulatory Policy Board, among others, establishes: "1. Formulate policy in the monetary sphere 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; (…) 26. Those others conferred by law";

RESOLUTION NO. JPRM-2025-006-M

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That, it is necessary to have an organized scheme in which all resolutions issued by the Monetary and Regulatory Policy Board regarding the formulation of policy in the monetary sphere and in its capacity as the governing body of the Central Bank of Ecuador are recorded; That, the Monetary and Regulatory Policy Board, in ordinary session by mixed modality, on July 16, 2025, reviewed Technical Report No. BCE-SPC-2024-052, dated August 28, 2024, sent via Memorandum No. BCE-BCE-2024-0187-M on August 30, 2024, by the General Manager of the Central Bank of Ecuador to the President of the Monetary and Regulatory Policy Board, as well as Legal Report No. BCE-GJ-023-2024, dated August 30, 2024; and, In exercise of its functions and in accordance with Article 47.7 of the Organic Monetary and Financial Code, the Monetary and Regulatory Policy Board resolves to issue the:
CODIFICATION OF MONETARY POLICY RESOLUTIONS AND OPERATIONS OF THE CENTRAL BANK OF ECUADOR ISSUED BY THE MONETARY AND REGULATORY POLICY BOARD TITLE I MONETARY SYSTEM
CHAPTER I
THE CURRENCY, PAYMENT MEANS AND SYSTEMS IN ECUADOR AND THE FINTECH ACTIVITIES OF THEIR PARTICIPANTS
SECTION 1
PRELIMINARY CONSIDERATIONS
Article 1.- Legal Tender: The legal tender in the Republic of Ecuador is the United States dollar.
All transactions, monetary and financial operations, and their accounting records, carried out in the country, shall be expressed in United States dollars.
Article 2.- Payment Means: These are physical or electronic instruments authorized by the Monetary and Regulatory Policy Board that, used among different economic agents, serve to carry out financial or economic transactions, with the purpose, among others, of acquiring goods, services, or canceling obligations.

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Payment means are classified into:
a. Physical payment means; b. Electronic payment means; and,
c. Electronic Wallets.
SECTION 2
PHYSICAL PAYMENT MEANS
SUBSECTION 1: DETERMINATION
Article 3.- Physical payment means: Physical payment means are banknotes, coins, and checks.
SUBSECTION 2: EXCHANGE OF FRACTIONAL CURRENCY
Article 4.- Scope of application: The provisions contained in this section are applicable to public banks with deposit-taking capacity, private banks, mutual savings and credit associations for housing, and savings and credit cooperatives, who for the purposes of this section are referred to as "financial entities"; as well as to the Central Bank of Ecuador within the scope of its attributions and competencies.
Article 5.- Currency exchange: The Central Bank of Ecuador and financial entities shall exchange at their counters, banknotes for fractional coins and vice versa, with the aim of satisfying the demand of the citizenry.
The citizenry will receive in fractional coins an amount equal to that delivered for exchange. Financial entities will carry out the exchange during their usual hours of public attention, without discriminating whether or not it is a client or member of the entity. To carry out exchange activities and satisfy demand, financial entities will keep in their cash registers coins of various denominations in sufficient quantities. The exchange and distribution of fractional currency will be carried out in accordance with the needs of the citizenry. Exceptionally, in case they do not have coins in the required denominations, the Central Bank of Ecuador and financial entities may deliver coins in the denominations closest to those requested. The Central Bank of Ecuador may request information it deems necessary from participants in the National Payments System regarding the characteristics of currency demand.

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SUBSECTION 3: POLICY FOR THE PROVISION OF NATIONAL FRACTIONAL CURRENCY BY THE CENTRAL BANK OF ECUADOR
Article 6.- Import of monetary species: With the purpose of ensuring the provision of national fractional currency, the Central Bank of Ecuador may import monetary species from the Federal Reserve of the United States of America or implement minting programs in the necessary denominations.
Article 7.- Technical studies: The estimation of the quantity of coins required will be carried out through technical studies that consider, among others, the replacement of coins due to deterioration of their quality, the behavior of the supply and demand for fractional currency, measured through net balances between deposits and withdrawals of fractional currency.
The Central Bank of Ecuador will calculate the replacement of the coin inventory, considering the minimum balance level of fractional currency in its vaults and the times involved in importation or minting.
Article 8.- Start of minting program: For the start of a national fractional currency minting program, the lower cost between importing the various denominations of fractional coins from the Federal Reserve of the United States of America and minting must be considered, guaranteeing the quality of the monetary species.
The Central Bank of Ecuador will prioritize the availability of fractional currency over its acquisition cost, when extraordinary events that have affected the supply or demand of the various species are registered.
Article 9.- Minting program: National fractional currency minting programs will be based on the availability of the Federal Reserve of the United States of America to provide species to the Central Bank of Ecuador within the timeframes and conditions that allow it to maintain adequate levels of fractional coins.
SUBSECTION 4: CHECKS
PARAGRAPH 1: DEFINITIONS
Article 10.- Check: The check is an unconditional written means of payment, through which the drawer, against the deposits held in the checking account at a financial entity, orders this entity to pay a certain amount of money to another person called the beneficiary.

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The check must comply with the physical, electromagnetic, design, dimensions, and security characteristics established in paragraph 11 of this subsection.
Article 11.- Definitions: The terms used in this subsection shall be understood according to the following definitions:

1. Cancellation: Is the act by which the holder or drawer of a checking account requests the drawee to invalidate one or more check forms;
2. Beneficiary: Is the natural or legal person in whose name a check is drawn;
3. Expiration: Is the loss of validity of a check due to the expiration of the presentation period for collection, established in Article 517 of the Organic Monetary and Financial Code;
4. Blocked checking account: Is the checking account that cannot be managed by its holder or authorized person, by judicial order or competent authority;
5. Personal checking account: Is a checking account opened in the name of a natural person. In this type of checking account, the condition of holder and drawer falls on the same person;
6. Collective checking account: Is a checking account opened in the name of two (2) or more natural persons. In this type of checking account, the condition of holder falls on all persons registered in the drawee financial entity; and, the condition of drawer falls on the person or persons who issue the check;
7. Corporate checking account: Is a checking account opened in the name of, among others, a legal person, foundation, or other societies. In this class of checking account, the quality of holder falls on the legal person and the quality of drawers on those persons authorized to draw checks against said account;
8. Checking accounts of public entities: Are accounts opened by entities of the public sector. In this class of checking account, the quality of authorized signatures falls on those persons authorized to draw checks against said account;
9. Closed checking account: Is that checking account that, due to non-compliance with legal and regulatory provisions, has been sanctioned with the closure of the account by the corresponding Superintendency and as a result of the sanction, no checks can be drawn or paid, nor register other deposit or withdrawal movements, because its holder, drawer, joint signature, or authorized signature has been sanctioned;

RESOLUTION NO. JPRM-2025-006-M
_______________________________ paid checks, nor register other deposit or withdrawal movements, because its holder, drawer, joint signature, or authorized signature has been sanctioned;
10. Cancelled checking account: The cancellation of a checking account can be generated by the decision of the account holder or the financial entity, so the following types of cancellation will be considered:
a. Cancellation by the holder.- Is the act by which the holder of the checking account terminates the checking account contract, which must be notified in writing to the financial entity. As a consequence, the client will withdraw all funds from their checking account and cease operations with that entity from the date of notification; and, b. Cancellation by the financial entity.- Is the act by which the financial entity terminates the checking account contract, based on the causes determined in the checking account contract and in this regulation;
11. Check: Is the unconditional payment order, through which the drawer, against the deposits held in the checking account at a financial entity, orders this entity to pay a certain sum of money to a beneficiary. The check must comply with the physical, electromagnetic, design, dimensions, and security characteristics established in this chapter;
12. Certified check: Is the check whose drawee ensures payment of the amount to the beneficiary by writing the word "certified" by the issuing bank entity, the date, and signature of the person authorized by the drawee, releasing the drawer from the responsibility of payment thereof;
13. Crossed check: Is the check on which two parallel lines appear in the upper left part of the check or the text "crossed check", with the purpose that its collection be effected only through deposit;
14. Manager's check: Are internal cash orders or other drafts against the entity itself, extended by the manager or authorized official for services, purchases, and other similar concepts, that is, those related to the administrative functioning of the entity. This type of check will not be used for financial operations proper to the entity;
15. Emergency check: Is the check drawn by the manager or authorized official of the drawee financial entity, at the request of the account holder, who must resort to the financial entity to have a check drawn for the amount required. This check must be drawn in the name of the beneficiary indicated by the applicant;

RESOLUTION NO. JPRM-2025-006-M
_______________________________ financial entity to have a check drawn for the amount required. This check must be drawn in the name of the beneficiary indicated by the applicant;
16. Declare ineffective: Is the act by which the drawer instructs the drawee financial entity not to pay the check or checks because they have been reported as stolen, deteriorated, lost, or destroyed;
17. Substantive defect: Is the lack of any of the requirements that must appear on the check, in accordance with the provisions contained in Article 479 of the Organic Monetary and Financial Code. The check in which one of the requirements indicated in said provision is missing will not have validity as a check;
18. Formal defect: Is that defect that does not invalidate the check as such, but causes its rejection. Formal defects will be considered to be the check drawn by a person ineligible or not authorized at the time of drawing, the notorious non-conformity of the signature of the drawer or drawers with that registered in the financial entity, the use of pre-signature stamp, dry stamp, the use of adhesive tapes or corrugations in the figures of the amount. The rejection will take effect provided there is sufficient provision of funds, otherwise the check will be protested;
19. Return: Is the delivery of the check by the financial entity, for effects of the protest or rejection of payment, in the terms of Article 492 of the Organic Monetary and Financial Code. For the case of returned checks, the financial entity must stamp a legend indicating the cause of the protest or rejection thereof;
20. Endorsement: Is the transmission of a check to order through a written formula on the back of the document;
21. Endorser: Person who transmits to another, by means of endorsement, the rights and responsibilities of the check;
22. Registered signature: Is the signature that appears on the registration card of the financial entity, which must be similar to that appearing on the identity card or passport, as applicable. Natural and legal persons have the obligation to keep the signature registry updated;
23. Authorized signature: Is the signature of the natural person that appears in the records of the financial entity, previously authorized by the holder of the corporate checking account, to draw checks against the holder's checking account;

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24. Joint signature: Are the signatures of natural persons that appear in the records of the financial entity and that are authorized to draw checks against a collective checking account; and, that for the issuance of the check must appear one next to the other;
25. Check form: Is the document that has not been drawn. It is known as blank format and must contain the legal and regulatory requirements established for the effect;
26. Drawer: Is the natural person who issues the check, who may have the quality, either of holder, authorized signature, or joint signature;
27. Digital image of the check: Is the image of the check that, upon meeting the technical requirements of digitization, must be accepted for payment or in the respective clearing chamber;
28. Depositing financial entity: Is the entity authorized to receive deposit of checks and present them in the clearing chamber for payment. For the case of return, these entities must stamp the corresponding seal on the physical returned check, with the legend "To the order of the drawee";
29. Drawee financial entity: Is the entity legally authorized to receive monetary deposits, obliged to pay, protest, or reject, as the case may be, the amount of a drawn check;
30. Ineligible person: Is the holder, drawer, joint signature, or authorized signature that has been sanctioned by the corresponding Superintendency for non-compliance with legal or regulatory provisions; or, for not paying fines for protested checks, within the timeframes provided in the current regulation;
31. Presentation period: As established in Article 493 of the Organic Monetary and Financial Code, checks drawn and payable in Ecuador must be presented for payment within twenty (20) days counted from the date of their issuance; while checks drawn abroad and payable in Ecuador, will be presented for payment within the period of ninety (90) days counted from the date of their issuance. However, the drawee may pay a check in Ecuador up to thirteen (13) months after the date of its issuance;

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32. Bearer or holder: Is the person who possesses the check in their capacity as beneficiary or endorsee;
33. Protest: Is the refusal of the drawee financial entity to pay a check presented for collection that does not have sufficient provision of funds, or because it was drawn on a closed or cancelled checking account. The protest can be total, if protested on the total value of the check, or partial, if a partial payment has been made on said check;
34. Rejection: Is the act by which the drawee denies payment of a check and returns it due to substantive or formal defects. In case of formal defect, if there is insufficiency of funds, the protest of the check corresponds;
35. Revocation: Is the act by which the holder, drawer, or authorized signature that drew the check, requests in writing from the drawee to abstain from paying it, indicating the reason for such revocation, without this disappearing the responsibility of drawer. The revocation will not take effect when there is no sufficient provision of funds, in this case the drawee financial entity will protest;
36. Temporary suspension of payment: According to the second paragraph of Article 495 of the Organic Monetary and Financial Code, at the request of the bearer or holder who has lost the check, the drawer is obliged, as a temporary protection measure, to suspend in writing the payment order; and,
37. Holder: Is the person or persons natural or the legal person, who, prior to meeting the requirements established here, proceed to open a checking account at an authorized financial entity.
    Article 12.- Responsibilities: For the purpose of applying the provisions of this regulation, it will be understood that the qualities of holder, drawer, joint signature, authorized signature, have individual, joint, and solidary the same responsibilities in the management of the checking account, with the exceptions provided in this regulation.
    PARAGRAPH 2: OF THE ISSUANCE AND FORM
    Article 13.- Presentation for payment: The check is payable always at sight, even if it is post-dated or pre-dated.
    When a check is presented for payment within the timeframes of Articles 493 and 517 of the Organic Monetary and Financial Code or its digital image is presented for payment or in the clearing chamber, the financial entity, upon its presentation, must pay it or, in its defect, must protest or reject it, with the consequent return, as the case may be, without prejudice to the different effects that the law points out, in consideration of the time of presentation. Financial entities are prohibited from placing in place of the protest any legend, with or without date, that establishes that the check was presented for payment and not paid. The entity that infringes this prohibition will be sanctioned by the corresponding Superintendency with a fine for the value of the corresponding check. The person who admits a check as a credit instrument is subject to the fine provided in Article 520 of the Organic Monetary and Financial Code, between one and thirty unified basic salaries. The check drawn in accordance with what is provided in the Organic Monetary and Financial Code, has probative value. Likewise, the digitized image of the check and those processed in the check clearing chamber, will have the same probative value as the original.

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Article 14.- Language: The drawer must use the Spanish language for the issuance of checks in legal tender.
For the issuance of checks in foreign currency payable in Ecuador, they may use indistinctly, the Spanish language or the language of the country to which the currency corresponds.
Article 15.- Place and date of issuance: When drawing a check, the place and date of issuance must be clearly indicated.
For the place of issuance, common abbreviations may be used in the corresponding space or box.
The date may be written in numbers and letters or only in numbers or only in letters, as it appears on the form, provided that day, month, and year are recorded. If written only in numbers, the following order must necessarily appear: year, month, and day.
When it comes to the month, abbreviations and Arabic or Roman numerals may be used.
The amount written in numbers, when it has decimals, must be written with two decimals.
When the amount is expressed in letters, the decimal part may be presented with the use of fractions or with the complete writing in letters.

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Article 16.- Prohibitions: It is prohibited to issue duplicate checks. Likewise, it is prohibited to place stamps or legends on the check that condition its payment, in which case they will be considered as non-existent.
Article 17.- Drawing of check: The check must be drawn "to the order of a determined person" or "not to order", with the legal effects of the case.
Article 18.- Non-transferable check: The check that contains the expression "not to order" or another equivalent (nominal) such as: "non-endorsable", "non-negotiable", "non-transferable", is not transferable except in the form and with the effects of an ordinary assignment.
The drawee financial entity