So “FAST”

The Communiqué No. 2020/4 on the Procedures and Principles Regarding Fees Banks Can Charge Corporate Clients published on the Official Gazette No. 31035 dated February 10, 2020 ("Communiqué") was amended via the Official Gazette No. 31351 dated December 31, 2020. The amendment reflects the fees that banks can charge for banking transactions made via Instant and Continuous Transfer System of Funds (Fonların Anlık ve Sürekli Transferi Sistemi) ("FAST"), a new fund transfer system introduced by the Central Bank of the Republic of Turkey.

The Central Bank of the Republic of Turkey (“CBRT”) developed FAST as a new generation instant retail payment service available 24/7, and it has started operating on 8 January 2021 following the completion of pilot tests with banks. Differently from Electronic Fund Transfer (EFT), which operates on week days and where its transfer durations may differ due to internal workflows of sending and receiving banks, payments under FAST are executed within seconds and the funds are instantly available in the recipient's account including non-working days.

FAST has been launched with a limit of TRY 50 to monitor closely the extent of use as an initial step, and this limit is increased up to TRY 1,000 on 29 January 2021 in view of the extent of use. Despite the present limit launched by the CBRT, it is crucial to state that banks may set a lower amount and a daily transfer limit to their customers considering the risk profiles.

In accordance with Article 12/3 of the Communiqué, for fund transfers executed via FAST in an amount equal to or lower than TRY 1,000 -in the event that the present limit is increased by the CBRT, fees mentioned below will differ from TRY 2 to TRY 100-, the maximum fees can be charged by banks are:

» TRY 1 for transactions executed via mobile banking applications, internet banking services and regular payments;

» TRY 2 for transactions executed via ATMs;

» TRY 5 for transactions concluded through other means.

Along with the FAST system, also the Easy Addressing System has been developed by the CBRT in which Turkish identification number, phone number or e-mail address can be matched with customers’ account number. In this way, customers are able to transfer funds to relevant number or address matched with their account number and registered in the system in lieu of the account numbers.

According to statement made by the CBRT, FAST has attracted major interest processing 9 million instant payments since its launch on 8 January 2021, and the Easy Addressing System has reached 5.3 million. For the CBRT’s assessments, interoperability of the FAST with higher limits and new value-added services that will enhance user experience, such as QR code payments, will be possible in the future. Through the integration of such features and with higher limits, major contributions will be provided to consumers and corporates’ business models as part of the target for full-fledged digitalization of the economy.

The content herein is aimed at providing a general insight regarding the subject. For customized circumstances or for further information, please refer to your lawyer.