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Ethiopian Automated Transfer System (EATS) Fees and Penalties (Directive No. 943/2022)

National Bank Of Ethiopia943/2022

Summary

This directive establishes fees, penalties, and incentives for the Ethiopian Automated Transfer System (EATS) to ensure its safe, efficient, and reliable operation, and to improve service quality. It outlines specific charges for joining, membership, various transaction types, e-token services, and penalties for non-compliance or delays, alongside incentives for early or high-volume settlements.

Who's affected

Financial institutions participating in the Ethiopian Automated Transfer System (EATS) and the Addis Ababa Check Clearing Office (ACCO).

Action required

Participants must pay applicable fees and adhere to the rules to avoid penalties. New applicants must pay the joining fee.

Key points

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  • EATS Fees and Penalties Directive No. 943/2022 sets fees and penalties for EATS operations.
  • Fees include joining, annual membership, RTGS, low-value payments, NSI processing, and e-token services.
  • Penalties are imposed for rule violations, insufficient funds, transaction delays, and unjustified payment returns.
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    • Incentives include discounts for early settlement and high-volume transactions.
    • Surcharges apply for late hour settlement and operating hour extensions.
    • Annual membership fees are due in the first month of the fiscal year; non-payment can lead to membership revocation.
    • The directive applies to all EATS and ACCO participants.
    • The directive is effective from October 3, 2022.

Requirements

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  • Pay a joining fee of Birr 50,000 to join EATS.
  • Pay an annual EATS membership fee of Birr 30,000.
  • Pay an annual ACCO membership fee of Birr 100,000.
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    • Pay a standard RTGS transaction fee of Birr 50 per transaction.
    • Pay a standard bulk transaction fee of Birr 5 per low value payment item.
    • Pay a net settlement instruction (NSI) processing fee of Birr 250 per NSI.
    • Pay an e-token certificate configuration fee of Birr 10,000 per new certificate.
    • Pay an e-token certificate renewal or password reset fee of Birr 5,000.
    • Pay an EATS user password reset fee of Birr 20,000 per user.
    • Pay annual membership fees in the first month of every fiscal year.
    • Submit proof of payment for annual membership fees to the National Bank.
    • Comply with rules and guidelines governing EATS.

Rights and permissions

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  • Entitlement to an early hour settlement discount of 10% for RTGS and low value transactions settled before 10:30 AM.
  • Entitlement to a high volume payment instruction discount of 10% for participants sending over 10,000 RTGS transactions or 50,000 low value payment items daily.
  • Participants who requested operating hour extension may send transactions during extended hours.

Restrictions

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  • Participants must have sufficient funds for RTGS transactions.
  • Participants must credit the beneficiary’s account within 24 operating hours after receiving a payment instruction from EATS.
  • Participants must send a payment instruction to EATS within 6 operating hours after receiving it from a customer.
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    • Participants can only return payment instructions for reasons stipulated by the National Bank of Ethiopia.
    • Participants sending RTGS transactions after 4:00 PM must pay a late hour settlement charge.
    • No participant shall send any transaction during extended operating hours, except those who requested the extension or the National Bank.

Penalties

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  • A penalty of Birr 30,000 per violated rule for non-compliance with EATS system rules.
  • A transaction cancellation charge of Birr 30,000 per cancelled RTGS transaction if sent without sufficient funds.
  • A transaction delaying charge of Birr 30,000 per transaction for delaying to credit the beneficiary’s account for more than 24 operating hours.
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    • A transaction delaying charge of Birr 20,000 per day and transaction for delaying to send a payment instruction to EATS for more than 6 operating hours.
    • A penalty of Birr 30,000 per transaction for returning payment instructions due to unjustifiable reasons or reasons other than those stipulated by the National Bank.

Objectives

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  • Ensure the safety, efficiency, reliability, and smooth operation of EATS.
  • Improve the service quality of the National Bank of Ethiopia to satisfy its customers.
  • Share costs related to EATS among participants.
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    • Ensure all participants comply with rules and guidelines governing EATS.

Organizations

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  • National Bank of Ethiopia
  • Addis Ababa Check Clearing Office (ACCO)

Legal references

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  • Article 4(2)(d)/2/, 30, 34 and 37(2) of the National Payment System Proclamation No. 718/2011
  • Articles 85(2&3) and 102(d) of the system rules
Original sourcehttps://justice.gov.et/en/directives/ethiopian-automated-transfer-system-eats-fees-and-penalties-directive-no-943-2022/
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