The use of electronically generated checks (ECHEQ) experienced a sharp increase in 2021 to the point that this instrument already represents 40.5% of the total amounts cleared, according to the latest data.
Likewise, in June, the amount of 1,082,321 ECHEQs were issued for an amount of more than 550 billion pesos, both record figures.
On the other hand, the amount of ECHEQs traded in the Argentine stock market doubled since January 2021, from 10,372 million to 22,253 million in June.
Launched by the Central Bank of the Argentine Republic (BCRA) in 2019 as an innovation to simplify operations and reduce costs, the ECHEQ registered rapid adoption and its growth has been steady.
To illustrate the degree of progress recorded in the last year, it is enough to mention that, in April 2020, physical checks still accounted for 95.1%, while electronic checks accounted for 4.9% of the total cleared amounts.
In 2020, ECHEQ was consolidated and accelerated its growth in a context of isolation and social distancing that placed the instrument as one of the fundamental financing tools for small and medium-sized enterprises, as well as financial inclusion.
Last year, more than 3.9 million electronically generated cheques were issued and 2.8 million were deposited, and the entities offering the ECHEQ issuance service almost doubled.
A key tool for MSMEs
In addition to facilitating operations and reducing costs for all actors in the system, the ECHEQ has a particularly favorable impact on MSMEs throughout the country.
The electronic check is a source of financing that is relevant for micro and small enterprises because it facilitates its negotiation, being able to be carried out electronically and remotely, reducing operational costs, transfer and verification of documents.
In addition, ECHEQ reduces the grounds for rejection and minimises the possibility of fraud since, as it is electronic, the document cannot be adulterated or falsified.
As a result of the widespread adoption of the ECHEQ and its significant growth in both issuance and trading volumes, with the aim of advancing in the development of a robust and innovative product, the BCRA introduced new provisions that expanded the functionalities of this instrument.
A milestone of singular importance was the authorisation in 2020 of the Systemically Important Financial Market Infrastructures as managers of ECHEQs, which made it possible to trade the instrument on the stock market in an agile and efficient manner.
An innovative
instrumentThe ECHEQ has the same rules as the paper cheque, depending on whether it is a regular cheque or a deferred payment cheque, and all banks are obliged to receive an ECHEQ and allow it to be deposited. To issue it, you must have the CUIT or CUIL of the beneficiary and it can be deposited in checking accounts and savings banks. An ECHEQ can be accepted or rejected until the expiration date of the value.
Among the main advantages of ECHEQ, the following stand out:
• Simplification of the operation of issuance, endorsement, negotiation and circulation in general, through digital channels.
• Unlimited endorsements.
• Reduced operating costs compared to traditional check.
• Greater safety and effectiveness since it allows us to know with certainty its traceability.
• Minimizes the reasons for rejection.
The ECHEQ is part of a series of innovative measures adopted by the BCRA to strengthen the digital payment ecosystem, such as Transfers 3.0, the interoperability of all QR codes, the electronic credit invoice, as well as the reduction of commissions and reduction of the crediting period for credit card payments for MSMEs.
In this way, the Central Bank is creating the conditions to achieve a more modern and agile payment system, which is in a position to replace cash with efficiency and security.
