ECHEQs become effective

June 28, 2019.Operations through ECHEQs become effective on July 1. Users may issue and receive ECHEQs through electronic channels.

Financial institutions must receive deposits in ECHEQs as required under regulation. The issue of ECHEQs—though not mandatory—is available for current accounts and is expected to grow gradually. ECHEQs will be issued and transferred through electronic means to accounts at financial institutions or licensed infrastructures in the financial market. ECHEQs will only be issued or deposited through financial institutions.

ECHEQs are an example of innovation which has been promoted by the BCRA to streamline operations and bring down their cost (Communication A6578).

For the purposes of tuning up the ECHEQ operation even further, the BCRA Board adopted three supplementary regulations yesterday: one of them amends the regulation on bank current accounts, while the other two govern operating issues, such as the agreement on truncation, the issue and management of e-checks and other instruments subject to clearance, along with the certification to file civil actions (Communications A6725, A6726 y A6727).

The main advantages of ECHEQs include:

• Simplification of ECHEQs' issuance, endorsement, negotiation and transfer in general through digital channels.

• Unlimited endorsements.

• Reduction of operating costs compared to traditional checks.

• Greater security and effectiveness.

• Less legitimate reasons to reject ECHEQs..

ECHEQs are also a financing source, particularly for the SMEs sector which can derive benefit from this innovative way of negotiation on a remote basis, thus, reducing operative costs as well as those of transport, and verification of documents.

 

Through measures like this one, the BCRA aims at reaffirming its commitment to adopting actions to promote the modernization of the payments system while improving the efficiency of the financial system.