Electronic Time Deposits May Be Transferred, Cleared and Divided

The Board of the BCRA has approved the creation of an instrument with more options for users: the electronic certificate for time deposits and investments (certificado electrónico para depósitos e inversiones a plazo, CEDIP). It will enable them to derive more benefit from time deposits and investments made through online banking and mobile banking, streamlining their division and transfer.

CEDIPs—both those stated in pesos (including deposits or investments denominated in units of purchasing power (UVAs)) and those in US dollars—may be transferred electronically in an easy manner, and be divided into smaller amounts and cleared. Thus, CEDIPs may be used as a means of payment and financing. Financial institutions will issue a CEDIP for each time deposit or investment.

This instrument enlarges the scope of the digital payment system and provides users with more investment and savings options.

CEDIPs may be:

• transferred for discharging an obligation—between companies or individuals—, for negotiation in the stock market and/or for the primary issuance market.

• divided into smaller amounts so that one portion may be transferred, the residual amount remaining under the original conditions. This procedure will allow holders to obtain liquidity for the amounts they may need.

• cashed, upon maturity, at a counter of the financial institution where the deposit was made, or else deposited in an account held at a different financial institution.

The BCRA’s resolution concerning the CEDIP will be applicable as from July 1, 2023 (except for the provisions on division, transfer for negotiation in the stock market, and collection at the counter, which will be applicable as from November 1, 2023).

It should be noted that every transfer of a CEDIP will be fully traceable because every transfer will be recorded and dated.

Time deposits and investments made through online banking and mobile banking will thus be more attractive to users than those made in person. As of September 2022, non-transferable time deposits (electronically made) accounted for nearly 88% of total time deposits and investments against 12% for transferable time deposits and investments.

The BCRA has been promoting the use of digital means of payment and financing by streamlining their use and creating new instruments: ECHEQs, which have proven to be robust, reliable and widely adopted; and electronic credit invoices for micro-, small- and medium-sized enterprises, with the recent implementation of the system for the open transfer of e-invoices.

January 19, 2023

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