Commercial Bank of Ethiopia: Hand Book On Customers' Classification, Feature of Products, Channels and Services

COMMERCIAL BANK OF
ETHIOPIA
Hand Book on Customers’ Classification,

feature of Products, Channels and Services
i
Contents
CHAPTER ONE ....................................................................................................................................................4
CLASSIFICATION OF CUSTOMERS ..............................................................................................................4
1.1.1 Private .....................................................................................................................................................4
1.1.2 Government .............................................................................................................................................4
1.1.3 Public Enterprises....................................................................................................................................5
1.1.4 Associations ............................................................................................................................................5
CHAPTER TWO ...................................................................................................................................................6
PRODUCTS ...........................................................................................................................................................6
2.1 Local Deposit Products ...............................................................................................................................6
2.1.1 Ordinary Saving ..........................................................................................................................................6
2.1.2 Women’s Saving Account.....................................................................................................................14
2.1.3 Youth Saving Account ..............................................................................................................................15
2.1.4 Teen Youth Saving Account ....................................................................................................................15
2.1.5 Education Saving Account ....................................................................................................................16
2.1.6 Accounts for Minors .............................................................................................................................17
2.1.7 Ordinary Demand Deposits ...................................................................................................................17
2.1.8 Special-Demand Deposit Accounts.......................................................................................................18
2.1.9 ECX Related Accounts .........................................................................................................................18
2.1.10 Fixed Time Deposit Accounts ...............................................................................................................19
2.1.11 Staff Accounts .......................................................................................................................................19
2.1.12 Cash Indemnity Account .......................................................................................................................20
2.1.13 Overdraft Account.................................................................................................................................20
2.1.14 Joint Accounts .......................................................................................................................................20
2.1.15 Earmarked Account...............................................................................................................................21
2.1.16 Accounts for Interdicted Persons ..........................................................................................................21
2.2 Foreign Deposit Products....................................................................................................................21
2.2.1 Types of Foreign Deposit Accounts ......................................................................................................21
2.3 Types of Cards Issued by CBE ...........................................................................................................27
2.3.1 CBE Proprietary (Private-Level) Cards ................................................................................................27
2.3.2 Domestic Visa Cards .............................................................................................................................28
2.3.3 International Visa Debit Cards ..............................................................................................................31
2.3.4 International Visa Pre-Paid Cards .........................................................................................................32
2.4 IFB Deposits
34
2.4.1 Accounts in Local Currency..................................................................................................................34
2.4.2 Accounts in Foreign Currency ..............................................................................................................37
CHAPTER THREE.............................................................................................................................................41
PAYMENT CHANNELS....................................................................................................................................41
3.1 Domestic Channels ..............................................................................................................................41
3.1.1 Cheque ..................................................................................................................................................41
3.1.2 Local Money Transfer ...........................................................................................................................44
3.1.3 Foreign Money Transfer .......................................................................................................................45
3.2 Alternative Channel ............................................................................................................................46
3.2.1 Online Banking .....................................................................................................................................46
3.2.2 Card Banking ........................................................................................................................................49
CHAPTER FOUR ...............................................................................................................................................59
SERVICES ...........................................................................................................................................................59
4.1 Muday Bank Service .............................................................................................................................59
4.2 Safe Deposit Box...................................................................................................................................59
4.3 Cash Pick Up ........................................................................................................................................60
4.4 Cashier Implant ...................................................................................................................................60
4.5 The Grand Ethiopian Renaissance Dam Bond .................................................................................61
4.6 Other Services ..........................................................................................................................................63
3
CHAPTER ONE
CLASSIFICATION OF CUSTOMERS
The branch shall provide different products and services through various channels. In order to deliver
the products and services in effective and efficient manner, the bank shall classify its customers based
economic ownership dimension. The Bank shall have four broad classifications by economic
ownership namely: Private, Government, Public, and Associations.
1.1.1 Private
The private category shall have the following sub classification:
a. Individuals- include any natural person who approaches the bank to get any products and
services.
b. Private Businesses- include Sole Proprietorship, Ordinary Partnership, Limited
Partnership, General Partnership, Joint Venture, Private Limited Companies, Share
Companies, Private Financial Companies and other similar entities.
c. Other Entities include:
i. All forms of organization which are not formed in line with the Ethiopian law and
operate under special agreement with the Ethiopian Government;
ii. The various embassies operating in Ethiopia and international and regional
organizations working in Ethiopia like UN, AU, EU, IGAO, NEPAD etc; and
iii. Funds collected from the community, donors, and other institution which are not
legally formed but facilitated by government entities. The typical entities under
this stipulation include funds collected from the community for road, water and
other infrastructures.
1.1.2 Government
The government category shall have the following sub classifications:
a. Federal Government Entities

i. All ministries established under the federal government, state owned higher learning
institutions including universities, colleges and other higher learning institutions;
ii. All government administrative agencies; and
iii. Federal autonomous organs which are accountable to the House of Representatives
including; Ethiopian Human Rights Commission, The Ethiopian Election Board and
others.
b. Regional Government Entities:– include all organs of regional government, city
administrations, state owned primary and secondary schools and any other establishment under
the regional government.
1.1.3 Public Enterprises
The public enterprise category shall include:
a. Public enterprises established as proclamation no. 25/1992 and share companies established
by government; and
b. All government owned enterprises like Ethiopian Airlines Enterprise, Ethiopian Sugar
Corporation, Ethiopian Electric Utility, Ethiopian Power Cooperation and etc.
1.1.4 Associations
The Associations category shall include:
a. Cooperative societies:
i. Agricultural cooperative associations, housing cooperative associations, industrial
and artisans producers’ cooperative societies, consumers cooperative, saving and
credit cooperative societies, fishery cooperative societies, mining cooperative
societies etc. and;
ii. Various establishment of cooperatives i.e. unions and leagues.
b. Charities, societies and associations:

i. All local and foreign based charities and ;
ii. Other associations such as professional associations and clubs, sector associations,
labor unions, trade unions, women and youth associations, traditional “Equb” and
“Edir”, and all religious organizations and political parties.
CHAPTER TWO
PRODUCTS
2.1 Local Deposit Products
2.1.1 Ordinary Saving
It is a type of deposit product that bears interest and can be maintained by physical or legal persons.
Features of the product
a. It is interest bearing account which is compounded monthly;
b. It can be opened individually, jointly and by corporate entities;
c. It can be opened with zero balance given that there is a reasonable source of fund that can
bring the balance to the minimum amount of Birr 25 within a month;
d. It can be operated b]y cash withdrawal slip, debit card, mobile and internet banking; and
e. A minimum amount of Birr 25 has to be maintained to qualify for interest calculation.
Eligible Entities
a. All natural and legal persons recognized by the Ethiopian laws; and
b. Minors through parents or tutors; and interdicted persons through legal guardians.
Document Requirements
i. Individuals
 Valid and renewed ID card;
 Tax Identification Number (TIN) for demand deposit account; and
 Two recent passport-size photographs for saving accounts and one for demand
deposit accounts if there is no digital camera in the branch;
ii. Individual Trade Operators (Sole Proprietorship)

 Valid and renewed ID card;
 A renewed trade license and principal registration;
 A recently taken passport-size photograph if there is no digital camera in the
branch; and
 Tax Identification Number (TIN).
iii. Private Limited Company

 The company’s renewed trade license and principal registration; and an investment
certificate (for investors);
 A Memorandum of Association and an Article of Association attested, registered
and sealed by Document Authentication and Registration Office;
 A letter of request to open and operate the account which should be signed by the
authorized person mentioned in the Memorandum of Association and in the Article
of Association that bears the company’s official stamp;
 A valid and renewed ID card of the person authorized to operate the account; and
one passport size digital photo for saving account to be retained by the bank if there
is no digital camera in the branch; and
 A tax identification number (TIN).
iv. Partnership
a. A renewed trade license and principal registration and an investment certificate (for
investors) in the name of the partnership;
b. A partnership agreement attested, registered and sealed by FDRE Document
Authentication and Registration Office;
c. A letter of request to open and operate the account which should be signed by
authorized person and to which the official stamp of the partnership must be
affixed, if any;
d. A valid and renewed ID card of the authorized person to operate the account; and
e. A tax identification number (TIN).
v. Share Company
a. The share company’s renewed trade license and principal registration;

b. A Memorandum of Association and an Article of Association attested, registered
and sealed by FDRE Document Authentication and Registration Office;
c. The minutes of the meeting of the Board of Directors held to discuss the opening
and operation of the account;
d. A letter of request to open and operate the account which is signed by the
Chairperson of the Board and bears the company’s seal; however, the general
manager shall sign on the request letter if it is delegated by the board;
e. A valid and renewed ID card of the person authorized to operate the account; and
f. A tax identification number (TIN).
vi. Institutions for Higher Learning

1. Colleges and Universities (State Owned)
a. A letter of authority from the Federal Ministry of Education or from the concerned
university;
b. A letter of authority from the concerned university or from the Education Bureau of
the region, whichever is appropriate;
c. On the strength of the institution’s letter of request if the institution was established
by proclamation and its establishment was announced in the Negarit Gazetta; and
d. A valid and renewed ID card of the person authorized to operate the account.
2. Private Schools, Colleges and Universities
a. If the private school or college was established in the form of a private limited
company, all the required documents stated under ‘private limited company’ must
be produced, and the account should be opened in the name of the school or college;
b. If the private school or college was established by an individual, all the required
documents stated under ‘private limited company excluding a tax identification
number (TIN)’ must be produced and an earmarked demand deposit account
should be opened in the name of the person, the school or college; and
c. A valid and renewed ID card of the person authorized to operate the account.
vii. Federal Budgetary Institutions

a. Letter of instruction from Ministry of Finance and Economic Cooperation; and
b. Valid and renewed ID cards and photo of the authorized signatories.
viii. Regional/City/ Administration Budgetary Institutions

a. Letter of instruction from regional/city finance and economic offices;
b. To open account for the Administration of the Zone/Sub City and other offices under
the Zonal’s or Sub City’s supervision, a written letter of instruction from their
respective regional/city finance and economic cooperation offices shall be
presented;
c. To open account for the administration of the Woreda and other offices under the
Woreda’s supervision, a written letter of instruction from their respective Zonal or
Sub City finance and economic cooperation office shall be presented;
d. To open account for entities/institutions under a particular Woreda’s domain, a
written letter of instruction from the respective Woreda, finance and economic
cooperation office shall be presented; and
e. Valid and renewed ID cards and digital photo of the authorized signatories.
ix. Public Enterprises
a. A public enterprise shall present the Negarit Gazetta that has announced its
establishment;
b. The letter of appointment by the Board of Directors of the General Manager;
c. A letter of request from the General Manager to open and operate the account
d. Tax Identification Number (TIN) for demand deposit account; and
e. Valid and renewed ID cards and digital photo of the authorized signatories.
x. Cooperatives
a. A certificate of registration issued by the appropriate authority. If the cooperative is in

the process of formation; however, a letter of authority from the organizing body shall
be presented;
b. The approved and registered rules and regulations of the cooperative. The rules and
regulations will have to; nonetheless, bear the official stamps of the registering body
and of the cooperative on all their pages;
c. Minutes of the most recently held meeting of the General Assembly, which clearly
shows the members’ pertinent resolution. If the cooperative is in the process of
formation, nevertheless, a letter of intent signed by all its members will suffice;
d. A letter of request by the chairperson to open and operate a current account;
e. A valid and renewed ID card and digital photo of the person authorized to operate the
account; and
f. Tax Identification Number (TIN) for demand deposit account.
xi. Labor Unions
a. A certificate of registration from the federal Ministry of Labor and Social Affairs or
from the region’s Bureau of Labor and Social Affairs;
b. Approved and registered rules and regulations of the labor union. Each page of these
rules and regulations shall bear the official stamp of the registering body and of the
labor union;
c. The resolution of the General Assembly that has appointed the Executive Committee
of the labor union. This document must; however, bear the official stamp of the labor
union and of the registering body;
d. Minutes of the Executive Committee;
e. A letter of request by the chairperson to open and operate the account;
f. Valid and renewed ID cards and digital photo of the authorized signatories; and
g. Tax Identification Number (TIN) for demand deposit account.
xii. Associations and Clubs
a. A certificate of registration obtained from their respective organizing authorities;

b. The rules and regulations of the association, which bear the official stamp of the
organizing authority and of the association or club;
c. Minutes of the most recently held meeting of the General Assembly at which the
members thereof resolved to form the Executive Committee duly sealed by the
organizing authority;
d. The minutes of the pertinent meeting held by the Executive Committee and a letter of
request by the chairperson thereof to open and operate the account;
e. A letter of request by the chairperson to open and operate the account;
f. Valid and renewed ID cards and digital photo of the authorized signatories; and
g. Tax Identification Number (TIN) for demand deposit account.
xiii. Religious Organizations
1. The Ethiopian Orthodox Tewahido Church

a. All Ethiopian Orthodox Tewahido Churches shall produce a letter of authority either from
the Patriarch or by delegated persons;
b. Valid and renewed ID cards of the authorized signatories; and
c. Tax Identification Number (TIN) for demand deposit account.
2. The Ethiopian Islamic Affairs Organization

a. A letter of authority signed by the Chairman of the Ethiopian Islamic Affairs Supreme
Council shall be presented to open and operate a bank account;
b. Valid and renewed ID cards of the authorized signatories; and
c. Tax Identification Number (TIN) for demand deposit account.
3. The Ethiopian Catholic Church

a. The Ethiopian Catholic Churches are required to present a letter of authority from the
Secretary General of the Ethiopian Catholic Secretariat to open and operate a bank account;
b. Tax Identification Number (TIN) for demand deposit account; and
c. Valid and renewed ID cards of the authorized signatories.
4. The Ethiopian Evangelical Church Mekane Yesus

a. A church will have to obtain a letter of authority from the President of the Ethiopian
Evangelical Church Mekane Yesus which is its central office to open and operate a bank
account;
b. Tax Identification Number (TIN) for demand deposit account; and
c. Valid and renewed ID cards of the authorized signatories.
5. Other Religious Organizations
a. Certificate of registration and letter of authorization from the Ministry of Federal and
Pastoralist Development Affairs;
b. Rules and Regulations of the religious organization;
c. Once the religious organization opened the initial account by the written instruction of
Ministry of Federal and Pastoralist Development Affairs, it can open another accounts for
its branch offices by the instruction letter of the Chairperson or President of the religious
organization;
d. Tax Identification Number (TIN) for demand deposit account;
e. The accounts shall be operated by their respective Chairperson or President; and
f. Valid and renewed ID cards of the authorized signatories.
xiv. Accounts for Minors, Interdicted Persons, Bankrupt Firms and Firms that are in the
Process of liquidation
When an account is to be opened in the name of a minor, an interdicted person, a bankrupt
firm, or a firm that is in the process of being liquidated, the following conditions will have to
be met:
a. Documents establishing the signing authority of a tutor, of a commissioner or of a
liquidator and any change thereof should be authenticated by the branch, the District or the
legal advisers of the Bank whichever is appropriate; and
b. When legal opinion on the authority of the tutor, of the commissioner or of the liquidator,
as the case maybe, has been obtained, a signature card that shows the names of the
signatories has to be maintained.
1. Accounts for Minors (Teen youth)
a. A proper letter of application submitted by the parent on behalf of the minor;

b. A ruling by a court order appointing the lawful tutor for the minor; and
c. Valid and renewed ID card of the tutor or the parent;
d. Two recent digital photograph of the parent and the minor; and
e. A church certificate or a municipality certificate or a certificate from a hospital, etc.
that gives the date of birth of the minor.
2. Accounts for Interdicted Persons
a. The ruling by a court of law pertaining to the interdiction;
b. An official letter from the court ordering appointment of the tutor;
c. Two recent digital photograph of the parent and the interdicted person; and
d. Valid and renewed ID cards of the tutor and the interdicted persons.
3. An account for a firm that is in the process of being Liquidated
a. The document containing the court’s ruling with regard to the company’s
bankruptcy;
b. The court’s decision pertaining to the liquidation of the bankrupt company;
c. An appointment of the liquidator by the court and the legal power given to her or
him for the purpose;
d. Tax Identification Number (TIN) for demand deposit account; and
e. The ID cards of the authorized persons.
xv. Account for Share Companies under Formation

a. A letter of authority from the licensing body will have to be presented; and no
cheques shall be issued until the customer brings Tax Identification Number (TIN) for
demand deposit account; and
b. A valid and renewed ID card of the authorized person to operate the account.
xvi. Account for Firms under the Process of Registration for Investment or Trade license
a. A letter of authority from the licensing body will have to be presented;
b. A valid and renewed ID card of the authorized person to operate the account.
However, the account will be blocked until the investment license and principal
registration are presented; and
c. If the request fails, the balance should be released and refunded upon presentation of a
letter of consent from the licensing organ.
xvii. Account for Overseas Organizations which are working in Ethiopia.
Overseas organizations that have bilateral, contractual, multilateral, etc. agreement to work in
Ethiopia without establishing branch office may request for account opening for local payments.
To that effect, the following documents should be produced:
1. Due to contractual agreement
a. The overseas organization shall give power of attorney to the country representative and
shall be authenticated from Ministry of Foreign Affairs and registered by FDRE
Document Authentication and Registration Office;
b. Shall present memorandum and article of association of the overseas organization
which is sealed by foreign affairs;
c. Contractual agreement of the organization with other local organizations;
d. Supporting letter from the local organization giving the contract;
e. A valid and renewed ID card of the person authorized to operate the account; and
f. Tax Identification Number (TIN) for demand deposit account.
2. Due to bilateral or multilateral agreement
a. A letter from Ministry of Foreign Affairs that requests opening of the account by
specifying the delegated person to open and operate the account and/or the
representative of the organization;
b. The letter of Ministry of Foreign Affair shall be signed by the person delegated by the
Ministry to that effect and shall be verified by the bank;
c. A valid and renewed ID card of the person authorized to operate the account; and
d. Tax Identification Number (TIN) for demand deposit account.
xviii. Accounts Opened to Manage and Control Project Fund

Public enterprises, government offices, universities etc… reach an agreement with other
organization to make advance payment to the organization through a separate account opened for
this purpose in the name of the organization and control the fund by assigning a co-signatory from
them. The following documents shall be presented upon the account opening:
a. Depending on the nature of the organization which the account shall be opened, the
organization shall present all the necessary documents:
i. To open the account and operate, letter of request shall be presented by the
project funding organization;
ii. All necessary documents of both parties related with their legal establishment
shall be presented.
b. Registered contractual agreement;
c. A valid and renewed ID card of the person authorized to operate the account; and
d. Tax Identification Number (TIN) for demand deposit account.
xix. Acceptable identification cards and their contents

a. Identification cards (IDs) to open an account
 Woreda/Kebele ID cards;
 Farmers associations’ ID cards;
 Employment and pension ID cards;

 School, college and university ID cards;
 Driver’s/operator’s licenses;
 Tax identification ID cards;
 Passports;
 Work or residence permits;
 Foreign-nationals-of-Ethiopian-origin ID cards together with a valid passports; and
 Ethiopian Community ID cards.
b. Contents of Acceptable ID cards:

 The bearer full name i.e. in case of Ethiopia Citizen Person’s name, Father’s and
Grandfather’s name;
 Photograph;
 ID number;
 Issue and expiry date; and
 Issuer name and issuer’s stamp.
2.1.2 Women’s Saving Account

Features of the product
a. It can be opened individually, jointly and by associations formed by women like Idir or
cooperatives having above 50% women members;
b. It can be opened with zero balance given that there is a reasonable source of fund that can
c. It provides higher interest rate than ordinary saving account as indicated in the bank’s term
and tariff;
d. Account holders enjoy a discount on goods and services from the suppliers who have
agreement with CBE. However, the customer is responsible for selecting the brand,
checking the functioning and genuineness of the goods before receiving them from the
supplier;
e. It can be operated by cash withdrawal voucher, mobile banking, internet banking and debit
card designed for holders of Women Saving Account; and
f. Cash withdrawal is allowed at any time in any amount of money.
Eligible entities
a. Individual women;
b. Various associations owned by women with more than 50% share;
c. Businesses entities fully owned by women;
d. Minor women (through parents or tutors);
e. Incapacitated women (through legal guardians); and
f. Women staffs of the CBE.
Required Documents
a. Please refer the required documents stated under 2.1.1.
2.1.3 Youth Saving Account

Features
a. It is provided only for individuals or group of individuals in the ages of 18-24;
b. It can be opened with zero balance given that there is a reasonable source of fund that can
c. It provides higher interest rate than ordinary saving account;
d. It shall be converted to normal/ordinary saving account when the account holder reaches
the age of 25 and;
e. It can be operated by cash withdrawal slip, debit card, mobile and internet banking.
Eligible entities
a. All individuals whose age is greater than or equal to 18 and less than 25 years old;
b. Individual trade operators (sole proprietorship);
c. Interdicted persons (through legal guardians); and
d. CBE Staffs.
Required Document
a. Please refer the above required documents stated under 2.1.1.
2.1.4 Teen Youth Saving Account

Features
a. It can only be opened by individuals in the ages of 14-17;
b. Self-employed/employed teens between the ages of 14-17 years can open and operate this
account by providing letter of confirmation from the Zonal/Woreda administration and
school administration. The letter shall at least state the applicant’s name, age, photograph
and source of income whether he/she generates their own income;
c. The parent(s) or the tutor of the teen youth can open the account for unemployed teen or
teen without own source of income. The account should be opened in the name of the teen
youth followed by the name of the signatory/signatories. The relationship to the youth
specified as either “parent(s)” or “tutor”;
d. It can be opened with zero balance given that there is a reasonable source of fund that can
e. It provides higher interest rate than ordinary saving account; and
f. It shall be converted to normal/ordinary saving account when the account holder reaches to
the age of 18.
Eligible entities
a. Individual whose age is greater than or equal to 14 and less than 18 years old and generates
his/her own income;
b. Minors through parents or tutor; and
c. Interdicted persons through tutor.
Required Document
b. A ruling by a court order appointing the lawful tutor for the minor;
d. Two recent digital photograph of the parent and the minor;
e. Letter of confirmation from the appropriate authority; and
f. A church certificate or a municipality certificate or a certificate from a hospital, etc. that
gives the date of birth of the minor.
2.1.5 Education Saving Account

Features
a. It is designed for saving money for higher education up to undergraduate programs;
b. It can be opened for oneself or for a minor by the parent(s)/tutors of the minor;
c. It provides higher interest rate than ordinary saving account;
d. It may grant scholarship fund for account holders who are eligible to take part in a special
scholarship program. Winners can also use the scholarship fund as seed money for initial
capital to start a small-scale business instead of pursuing higher education; and
e. Withdrawal from the Education Savings Account is allowed anytime. However, in order to
be eligible for the scholarship or seed money award for a particular year, the customer shall
deposit the minimum amount set by her/his preference for 12 months of the calendar year
and no withdrawal is allowed in this period.
Eligible entities
a. Individuals classified as teen-youth, whose age is greater than or equal to 14 and less than
18 years old;
b. Any individual, whose age is greater than 18;
c. Minors through parents or tutor;
d. Interdicted persons through legal guardian; and
e. CBE staffs.
Required Document
a. Please refer the required documents stated under 2.1.1, 2.1.4 and 2.1.6.
2.1.6 Accounts for Minors
Features
a. It is a saving account opened for individuals below the age of 18;

b. The account shall be opened and operated by parents or legally appointed tutor; and
c. At a time of reaching major, it shall be convert to ordinary saving account and operated by
the major.
Eligible entities
b. All individuals who age is below 18.
Required Documents

b. A ruling by a court order appointing the lawful tutor for the minor;
d. Two recent digital photograph of the parent and the minor; and
e. A church certificate, a municipality certificate or a certificate from a hospital, etc. that
gives the date of birth of the minor.
2.1.7 Ordinary Demand Deposits
Features
a. It is a non-interest bearing bank account usually operated by cheque;

b. It can also be operated by using card, mobile and internet banking;
c. It can be opened with a minimum balance of Birr 1,000 and Birr 2,000 for individual and
business customers respectively;
d. Penalty is charged if the minimum account balance is below Birr 500 and has no movement for
more than six months; and
e. No restrictions on the number and amount of deposits and withdrawals as long as the account
have sufficient balance.
Eligible entities
a. All natural and legal persons recognized by Ethiopian laws;

Required Documents
2.1.8 Special-Demand Deposit Accounts
Features
a. It is operated by passbook that is designed for the purpose;

b. It is non-interest bearing account;
c. It has a hybrid features of saving account and demand deposit account;
d. It can be opened individually, jointly or by corporate entities;
e. It can be opened with zero balance given that there is a reasonable source of fund that can
f. No restrictions on the number and amount of deposit;
g. It can be operated by cash withdrawal slip, debit card, mobile and internet banking; and
h. A minimum amount of Birr 25 has to be maintained to keep the account operating.
Eligible entities
a. All natural and legal persons recognized by Ethiopian laws; and

Required Documents
2.1.9 ECX Related Accounts

Features
a. The accounts are opened to facilitate commodity trading at ECX;

b. Account opening and closure process is carried out by Conventional Payment Operation
c. These accounts include:
1. Member Pay-in
i. Used as payment guarantee to participate in the trading floor of ECX;
ii. The member is a legal owner but shall empower ECX for debit transaction; and
iii. It can only be debited by the Conventional Payment Unit as per the instruction
of ECX.
2. Member Pay-out
i. Used to receive payment from ECX trading; and
ii. The member/account holder has exclusive right on the account.
3. Client Pay-in
i. It is an account maintained by members on behalf of their clients; and
ii. It can only be debited by the Conventional Payment Unit as per the
instruction of the ECX.
4. Client pay-out
i. An account maintained by members on behalf of their client; and
ii. The member/account holder has exclusive right on the account.
Eligible entities
a. Businesses involved in ECX trading activities.
Required Documents
a. Formal letter from ECX stating the nature of accounts to be opened; and
b. Please refer the required documents stated under 2.1.1.
2.1.10 Fixed Time Deposit Accounts

Features
a. It is opened for a particular fixed period (time) by depositing particular amount of money;
b. The period of fixed deposit is greater than or equal to 3 months;
c. Under normal circumstance withdrawal is not allowed prior to the maturity date. However,
if customer requests any withdrawal before the maturity date, the withdrawn amount shall
be entitled to the prevailing saving interest rate and any remaining amount shall be entitled
to the fixed deposit interest rate;
d. If the customer requests for a principal and interest rollover, it can be rolled over to the next
agreed period; and
e. Minimum initial deposit is Birr 10,000.00 or USD 5,000.00 or its equivalent in EURO or
Pound Sterling.
Eligible entities
a. All natural and legal persons recognized by Ethiopian laws; and
Required Documents
2.1.11 Staff Accounts

Features
a. Opened for CBE staff members and its category shall be changed to non-staff category
codes when the staff leaves the bank; and
b. Staffs are not allowed to effect transaction of their own account on the system except in the
payment channels such as internet, mobile and card banking.
Eligible entities
a. All CBE staffs.
Required Documents
2.1.12 Cash Indemnity Account

Features
a. Withdrawals is approved by the Branch Manager or Manager Operation for settling
cash shortage reported by the account holding staff; and
b. Payments may be effected to the account holding staff after one year of leaving cash related
post for which she/he was entitled to the cash indemnity.
Eligible entities
a. CBE staffs who are engaged in cash related activities and entitled for cash indemnity
allowance.
Required Documents
a. Please refer the required documents stated under 2.1.1 (i).
2.1.13 Overdraft Account
Features
a. It is a demand deposit account with feature that allows customers to withdraw money
beyond their credit balance; and
b. It can be withdrawn up to the approved limit.
Eligible entities
a. Customers who get overdraft loan.
Required Documents
a. Letter from Credit Unit.
2.1.14 Joint Accounts
Features
a. Joints accounts shall be maintained in the name of two or three individuals to jointly
operate the account; in case of joint account opening, account holders shall sign additional
contract design for the purpose;
b. Joint accounts can be “And Account” and “And/or Account”; and
c. The nature of “And Account” is that all the parties should be present at the counter of the
bank to give payment instruction and withdraw money. Whereas “And/or” account type
allows individual account holders to withdraw money and give payment instruction
separately.
Eligible entities and Documents Required
a. Please refer the eligible entities and required documents stated under 2.1.1.
2.1.15 Earmarked Account

Features
a. It is either saving or demand account opened by business people following the name of
customer/business with additional description;
b. It is an account opened with further description indicating the purpose like “club account,”
“business account,” “workshop account,” “project account,” “main account,” “branch
account,” etc.;
c. The customer shall explicitly request the bank in written form to add the description;
d. It can be earmarked using the registered trade name or the business sector indicated on the
trade license; and
e. Deposit can be made in the name of either the account holder or earmarked name.

2.1.16 Accounts for Interdicted Persons

Features
a. It is either a saving or demand account opened and operated by the tutor appointed by the
court on behalf of the interdicted person/s.

2.2 Foreign Deposit Products
2.2.1 Types of Foreign Deposit Accounts
2.2.1.1 NRT FCY Account (Non-Resident Transferable Foreign-Currency Accounts)

It is a type of foreign currency account maintained in hard currency and can be used locally
or transferred abroad in foreign currency without the necessity of obtaining foreign
exchange permit.
Features
a. The source of fund is overseas and in foreign currency;

b. The account can be maintained in hard currency or in Birr;
c. Persons residing abroad can open such accounts in person or by mail in their names through
Ethiopian Embassies;
d. A foreign currency shall be credited to the account through;
i. Direct crediting of the account from foreign sources via the banking system;
ii. Foreign currency cash note; (the account holder presents a signed and sealed foreign-
currency-declaration form from the Ethiopian Customs Authority for foreign currency
notes above 3,000 USD); and
iii. Cheque deposits that originate from abroad.
e. The foreign-currency accounts to be maintained in the following types of currencies are:
i. USD;
ii. Pound Sterling; and
iii. Euro.
Eligible entities
a. Embassies;
b. Foreign diplomats;
c. International organizations;
d. Expatriate employees of international organizations;
e. Foreign based charities;
f. Foreign investors;
g. Ethiopians living abroad and foreign nationals of Ethiopian origin (Diasporas);
h. Non-resident Ethiopian nationals living and working outside Ethiopia;
i. Non-resident foreign nationals of Ethiopian origin;
j. Companies owned by the above mentioned non-residents and located outside the Ethiopian
territory for more than one year;
k. Ethiopian nationals living and working abroad or in due process of living abroad for work
for more than one year and who can produce authenticated documents;
l. Exporters;
m. Recipients of inward remittances; and
n. Other local/international companies with the approval of NBE.
Documents Required
a. Embassies
i. A letter of application that states the manner of operation signed by the head of the
delegate; and
ii. Diplomatic ID cards or passports of the signatories of the account.
b. Diplomats
i. A letter of application which is signed by the ambassador or her/his delegate; and

ii. A diplomatic ID card or passport.
c. International Organizations
i. A letter of application;
ii. Permit from the NBE; and
iii. The ID cards or passports of the signatories of the account.
d. Foreign Investors
i. A permit from the NBE;

ii. The Memorandum of Association (for companies);
iii. The Article of Association (for companies);
iv. Registration certificate or investment certificate;
v. Letter from investment office;
vi. A letter that states the manner of the operation signed by the person to whom the mandate
is given by the Article of Association (for companies);
vii. If the company has a parent company, power of attorney from the parent company shall
be presented; and
viii. Valid ID cards or passports of the signatories of the account shall be presented. For
foreigners; however, work permit or residence permit shall be presented.
e. International Charities
i. A letter of application that states the manner of the operation from the organization’s
head office or regional office;
ii. Tax Identification Number (TIN) for demand deposit account;
iii. Permit from the NBE; and
iv. ID cards or passports of the signatories of the account.
f. Expatriate Employees of International Organizations
i. A letter of application from the employee;

ii. Valid and renewed ID cards from the organization that has employed them, or
driving/operating licenses, passports or trade licenses; and
iii. A letter from the employer, which confirms that her or his salary is paid in a foreign
currency.
g. Non-Resident Ethiopians and Foreign Nationals of Ethiopian Origin
i. An application form properly filled out and signed by the account holder;
ii. For individual foreign nationals of Ethiopian origin, valid passports and/or Ethiopian
origin identification cards;
iii. For businesses, a certificate of ownership/entitlement for the organization and/or the
Article of Association and the Memorandum of Association; and
iv. For those who cannot appear in person to open the NR account for one reason or another,
a filled application form shall be sent through E-mail, fax or courier service; a
confirmation letter from embassy, a correspondent bank or a remittance service provider.
h. Exporters
i. A letter of application; and
ii. Documentary evidence of legality and incorporation as per their formation, for sole
proprietorship all the documents stated under ‘individual trade operators (sole
proprietorship),’ for private limited company as stated under ‘private limited
company,’ for partnership as stated under ‘organizations legally incorporated for
partnership’ and for share company as stated under ‘organizations legally
incorporated for share company.’
i. Recipients of Inward Remittances

i. A letter of application;
ii. A valid and renewed ID card from the employing organization, a driver’s/operator’s
license, a passport or a trade license; and
iii. Documentary evidence of legality and incorporation as per their formation, for sole
proprietorship all the documents stated under ‘individual trade operators (Sole
Proprietorship’, for private limited company as stated under ‘private limited company’,
for partnership as stated ‘organizations legally incorporated for partnership’ and for
share company as stated ‘organizations legally incorporated for share company’ and
evidence that the applicant is a regular recipient of foreign exchange.
2.2.1.2 NRT (Non-Resident Transferable Birr Accounts)

It is a type of foreign currency account maintained in Birr and can be used locally or
transferred abroad in foreign currency without the necessity of obtaining foreign exchange
permit.
Features, Eligible Entities and Required Documents

a. Please refer 2.2.1.1
2.2.1.3 NRNT (Non-Resident Non-Transferable Birr Accounts)
It is a type of foreign currency account maintained in Birr and can be used for payment of local
expenses. Its convertibility into foreign currency needs approval (not automatic).

a. Please refer 2.2.1.1.
2.2.1.4 Foreign Exchange Retention

It is an account opened for exporters or for regular recipients of inward remittances to
retain a percentage of the earnings as per the pertinent NBE directives. There are two
retention accounts: Retention A and Retention B
a. Foreign exchange retention account A
i. The account shall be used to deposit 30% of the earned foreign currency; and
ii. The foreign currency deposited to the account shall be used to settle account holder
obligation in foreign currency or converted to local currency when requested by the
account holder.
b. Foreign exchange retention account B
The account shall be used to deposit 70% of the earned foreign currency up to 28 days,
any balance shall automatically be converted in the next working day into local
currency.

2.2.1.5 Diaspora Accounts

These account categories are opened for all Ethiopians living abroad for more than a year or all
Ethiopian origin having foreign citizenship. There are three types of accounts:
1. Non- Repatriate Birr Account (Saving Account)- is a foreign currency account opened
by diasporas that gives them privilege of earning double interest rate as compared to normal
saving interest rate. Withdrawal from this account is allowed only in Birr.
Features
a. This account may take the form of saving deposit that can be used for local payments
only;
b. Foreign currency is the only source of fund for the account;
c. It cannot be opened by the power of attorney. However, individuals with power of
attorney can operate the account;
d. Interest rate on such accounts shall be double of the minimum saving deposit rate set
by the National Bank of Ethiopia, currently it is 14%; and
e. Money can neither be transferred from this account abroad nor from the local currency
to any foreign currency.
Eligible entities
a. Non-Resident Ethiopians and foreign nationals of Ethiopian origin.
Required Document
a. An application form properly filled out and signed by the account holder;
b. For individual foreign nationals of Ethiopian origin, valid passports and/or Ethiopian
Origin identification cards;
c. For businesses, a certificate of ownership/entitlement for the organization and/or the
Article of Association and the Memorandum of Association; and
d. For those who, for one reason or another, cannot appear in person to open the NR account,
a filled application form through E-mail, fax or courier service and a confirmation letter
from embassy, a correspondent bank or a remittance service provider;
2. Foreign Currency Current Accounts- is a foreign currency demand account opened by

Diaspora where withdrawal from this account is allowed either in Birr or hard currency.
Features
It cannot be opened by power of attorney. However, individuals with power of attorney can operate
the account;
a. Foreign currency is the only source of fund for the account;
b. Withdrawals can be made at any time by issuing a cheque;
c. It can be opened with an initial deposit of USD 100 or its equivalent in any of the eligible
currencies;
d. The maximum amount to be deposited shall not exceed USD 50,000 or its equivalent in any of
the eligible currencies; and
e. Interest shall not be paid to this account.
Eligible Entities and Required Documents

a. Please Refer 2.2.1.5 (A).
3. Foreign Currency Fixed-Time Deposits- is a contract based account opened in foreign

currency for those individuals/business customers who want to earn higher interest rate for
certain period of time as per eligibility criteria.
Features
a. It is an interest bearing account with agreed maturity date;

b. Foreign currency is the only source of fund for the account;
c. It cannot be opened by the power of attorney. However, individuals with the power of
attorney can operate the account;
d. The minimum maturity period is three months;
e. It is opened with an initial deposit of USD 5,000 or its equivalent in any of the eligible
currencies;
f. Interest on such accounts shall be payable only if they are maintained at least for the
minimum period; and
g. Interest income on such accounts is tax-free.

a. Please Refer 2.2.1.5 (A).
2.3 Types of Cards Issued by CBE
Card is a valid card encoded with magnetic strip and/or data put on chip used for cash access or for
goods and services payment.
CBE Cards are issued with CBE logo to be used at ATM terminals and POS terminals. Consequently,
the bank issues the following type of Payment Cards:
2.3.1 CBE Proprietary (Private-Level) Cards
These cards are used to access funds in Pre-paid Accounts or cards where monetary values stored on
Chip and Magnetic Stripes.
A. Co-Branded Pre-paid Gift Cards:

These are produced on contractual agreement between an issuer and an organization to
join forces for mutual benefits.
Features
a. The maximum fund ceiling on cards is the preset denomination value;
b. There is no expiry date for the cards;
c. The cards are non reloadable;
d. The cards are not linked to any personal account, they are non-personalized.
e. The bank works in collaboration with other company;
f. The card is non-applicable for ATM financial transactions;
g. Maximum daily payment/purchase is allowed up to the balance on the cards; and
h. Non-applicable for cash advance (cash withdrawal) at Branches.
Eligible Entities
a. Individual whose age is 18 years or above; and
b. Company letter having number and denomination of cards.
Required Documents
a. Renewed Identification Cards/ Passport.
B. General Purpose Pre-paid Gift Cards (CBE Wallet and others)
These can be used in place of cash, cheques or gift certificates. They can also be used by employers as
staff incentive programs and/or as part of promotional campaign.
Features
a. The maximum fund ceiling on cards is the preset denomination value;
b. There is no expiry date for the cards;
c. The cards are non reloadable;
d. The cards are not linked to any personal account, they are non-personalized.
e. Maximum daily cash withdrawal limit from ATM is up to balance on the card;
f. Maximum daily payment /purchase limit on POS is up to balance on the cards; and
g. Maximum daily cash advance limit at Branches is up to balance on the cards.

a. Please refer to 2.3.1 (A).
2.3.2 Domestic Visa Cards

These are payment cards issued by the bank which are valid for local use only (valid only in Ethiopia):
2.3.2.1 Visa- Classic Debit Cards

Features
a. All Domestic Visa Cards have three years of life before expiration;
b. The maximum fund ceiling for all Domestic Cards is the balance on customer’s account.
c. Maximum daily payment /purchase limit on POS is Birr 200,000;
d. Maximum daily cash advance (cash withdrawal) limit at branches is up to Birr 100,000;
e. Maximum daily cash withdrawal limit from ATM is Birr 10,000; and
f. Maximum daily fund transfer limit on ATM is Birr 100,000.
Eligible Entities
a. Individual saving account holders;
b. Individual Current Account holders; and
c. Youth Account.
Required documents
a. Renewed Identification Card / Passport.
2.3.2.2 Visa- Classic Women Debit Cards

Features
a. Please refer 2.3.2.1
Eligible Entities
a. Women’s Saving Account holders.
Required documents
2.3.2.3 Visa classic IFB & Selam card
Features
Eligible Entities
a. IFB Account holders.
Required documents
2.3.2.4 Visa- Gold Debit Cards
Features
b. The maximum fund ceiling for all Domestic Cards is the balance on customer’s account;
c. Maximum daily cash withdrawal limit is up to Birr 15,000;
d. Maximum daily fund transfer limit is up to Birr 150,000;
e. Maximum daily payment /purchase limit is up to Birr 350,000; and
f. Maximum daily cash advance limit at Branches is up to Birr 150,000.
Eligible Entities
a. Business Customers;
b. Re-classified Visa Classic cardholders;
c. High Government Officials, Ministers, General Managers, Commissioners, Directors;
d. Diplomatic Corps;
e. Management of private firms; and
f. Other customers to be approved by Resource Mobilization HO/District.
Required documents
a. Renewed Identification Card / Passport; and
b. Business customer ID.
2.3.2.5 Visa- Platinum Debit Cards
Features
b. The maximum fund ceiling for all Domestic Cards is the balance on customer’s account;
c. Maximum daily cash withdrawal limit is up to Birr 20,000;
d. Maximum daily fund transfer limit is up to Birr 200,000;
e. Maximum daily payment /purchase limit is up to Birr 500,000; and
f. Maximum daily cash advance limit at Branches is up to Birr 200,000.
Eligible Entities
a. Premium Customers;
b. Reclassified Visa Gold cardholders;
e. Management of Private firms; and
f. Other customers to be approved by Resource Mobilization HO/District.
Required documents
b. Premium customer ID.
2.3.2.6 Co-Branded Visa Platinum Debit Cards

Features
i. All Domestic Visa Cards have three years of life before expiration;
ii. The maximum fund ceiling for all Domestic Cards is the balance on customer’s account;
iii. Maximum daily cash withdrawal limit is up to Birr 20,000;
iv. Maximum daily fund transfer limit is up to Birr 200,000;
v. Maximum daily payment /purchase limit is up to Birr 500,000; and
vi. Maximum daily cash advance limit at Branches is up to Birr 200,000.
Eligible entities
a. Sheba Miles members for Ethiopian Airlines Co-Branded Card.
Required document
2.3.3 International Visa Debit Cards

These are payment cards issued for acceptance or accessible through an international network.
2.3.3.1 Visa- Classic Debit Card

Features
a. Maximum daily cash withdrawal limit is USD 400;
b. The maximum fund ceiling for all domestic cards is the balance on customer’s account;
c. No limit on POS payments; and
d. The cards have two years of life before expiry date.
Eligible entities
a. All travelers;
b. FCY and diasporas account holders;
e. Management of private firms; and
f. Others customers to be approved by Resource Mobilization HO/District.
Required documents
b. Passbook and account confirmation letter.
2.3.3.2 Visa- Gold Debit Card
Features
Eligible entities
a. Business customers;
b. Exporters;
c. FCY and Diaspora account holders; and
d. VIP customers to be approved by Resource Mobilization HO/District.
Required documents
2.3.3.3 Visa- Platinum Debit Card

Features
Eligible entities
a. Corporate /Premium Customers;
b. Exporters;
c. FCY and Diaspora account holders;
d. VIP customers to be approved by Resource Mobilization HO/District; and
e. High Government Officials, Ministers, General Managers, Commissioners, Directors.
Required documents
2.3.3.4 Visa- Infinite Debit Card

Feature
a. There is no limit on daily ATM or cash advance POS withdrawal;
b. There is no limit on POS payments; and
c. The card has three years of life before expiry date.
Eligible entities
a. Based on special approval of CBE President.
Required documents
a. Letter approved by CBE president.
2.3.4 International Visa Pre-Paid Cards
These are cards used to access funds in pre-paid accounts or cards where monetary values stored on
Chip and Magnetic Stripes accessible through an international network.
2.3.4.1 Visa- Classic Pre-paid Cards
Features
a. The maximum fund ceilings is USD 10,000;
b. There is no limit for ATM withdrawals and cash advance POS terminals;
d. The cards have two years of life before expiry.
Eligible entities
a. All travelers.
Required documents
a. Passport with valid visa;
b. Air tickets; and
c. Foreign currency approval.
2.3.4.2 Visa- Gold Pre-paid Cards
Features
Eligible entities
a. Business customers;
b. Exporters who earned up to USD 1 Million;
c. FCY and diasporas account holders; and
d. VIP customers approved by Resource Mobilization HO/District.
Required documents
b. Air tickets;
c. Foreign currency approval; and
d. Business customer ID.
2.3.4.3 Visa- Platinum Pre-paid Cards
Features
Eligible entities
a. Corporate /Premium customers;
b. Exporters;
c. Frequent travelers;
d. FCY and diasporas account holders; and
e. VIP customer approved by Resource Mobilization HO/District.
Required documents
b. Air tickets;
c. Foreign currency approval; and
d. Premium customer ID.
2.4 IFB Deposits

It is a banking business in which mobilizing or advancing of funds taken in a manner consistent with
Islamic Finance Principles and mode of operation that avoids receiving or paying interest. The service
shall be provided on dedicated window base as per the NBE directives. (NBE Directive No. SBB
51/2011)
2.4.1 Accounts in Local Currency
2.4.1.1 Wadiah Amanah (Safe Keeping Deposit Account)
This is a trust agreement where the IFB window service keeps funds of depositors who want to place
their funds under safe custody without any benefit.
Features
a. The minimum balance to open this account is Birr 25.00 (Twenty five only). However, the
account shall be closed in accordance with the account-closing procedure if such minimum
deposit requirement is not forthcoming within one month;
b. The IFB window service provides the customer with a passbook as the case may be;
c. Customers are allowed to withdraw from their credit balance without any
restriction/limitation as to the amount and timings of the withdrawal;
d. Account operation shall be through the use of formats prepared for this purpose;
e. This account can be opened in ‘Birr’ or acceptable ‘foreign currency’;
f. With the permission of the customer while opening the account, the IFB window service
can make use of the fund on any permissible business financing;
g. No benefit is attached to this account. All profits generated from the use of the funds
belong to the Bank. However, the Bank at its discretion can provide gift (monetary or in
kind) to holders of such account as a form of appreciation taking into account, among
others, the amount and period for which the deposit remain with the Bank; and
h. There will be no service charge in relation to such account except for cost recovery
purposes in providing such services.
Eligible entities and required documents
a. Similar with conventional deposit accounts.
2.4.1.2 Mudarabah (PLS) Saving Account

“Mudarabah Deposit”: means a partnership in which the customer (Rabb-ul-Maal) provides the
deposit/capital and the Bank (“Mudarib”) provides its expertise and skill in relation to the investment
of such capital. Profit, if any, is shared between the parties as per an agreed ratio while loss, if any, is
borne solely by the Mudarabah investor as the case may be.
Features
a. Depositors save their money for the benefit of profit sharing for undefined time;
b. Profit rate to be paid is determined based on the performance of the bank during the
profit payment period;
c. The account is opened with zero profit sharing margin; but periodically, the bank
notifies the amount of profit share to be paid to the depositors account and credit the
account;
d. It is operated with passbook;
e. The minimum balance to open this account is Birr 500.00 (five hundred only);
f. Should the IFB window service suffer losses in its business ventures; the loss will be
compensated using reserve accounts;
g. If the reserve couldn’t cover the loss, it will entirely be borne by the depositor/investor
(unless there is evidence of gross negligence on the part of the IFB window service);
h. Account that short fall of the minimum deposit requirement at any given time shall not
be eligible for profit sharing;
i. The account can be opened in ‘Birr’ or acceptable ‘foreign currency’;
j. Customers are allowed to withdraw from their credit balance without any
restriction/limitation as to its amount and timing;
k. This account will be operated with the use of formats prepared for this purpose; and
l. There will be no service charge in relation to operating such account at counter.
However, there could be service charges if transaction is effected via ATM, POS other
cash dispensing outlets passbook changes and other cost recovery activities.

2.4.1.3 Qard Current/Checking/Demand Deposit Account- i

“Current Account-i”: means the Interest-Free Current Account(s) structured on the IFB concept of
Qard opened and maintained by the customer with the interest free Bank.
Features
a. The IFB window service provides its customers with cheque books;
b. With the permission of the customer while opening the account, the IFB window service can
make use of the fund on any permissible business financing;
c. The Bank undertakes to pay on demand any amounts outstanding in the current account in full.
The Bank may invest all amounts outstanding in this account in such manner as the Bank, in its
absolute discretion, deems fit and no returns of whatsoever nature (including profit) is paid out
on this Account;
d. The operation of the account can be performed through the use of checks provided by the
Bank;
e. Minimum balance of Birr 1,000.00 (Birr one thousand) is required to open such account;
f. Newly opened current accounts should be separately kept for three months under the account
status assigned for them. So that it will not be operated without authorization. The
Senior/Banking Business Officer can, nevertheless, change the status before the stated period if
she/he believes that the customer has been properly identified; and
g. The Bank may request service charge to be determined from time to time in relation to the
operation of this account.

2.4.1.4 IFB Mudarabah Fixed Time Deposit Accounts

It means the Interest-Free Deposit Account based on Mudarabah structure opened and maintained by
the customer with the Bank for a specified term.
Features
a. The account is opened for a limited period (term). Profit sharing margin can be variable
among customers based on duration and volume of their deposit;
b. Depositors shall not participate in the management of the investment of the funds;
c. The costs of managing each of the investment fund (such as employees' salaries) will be
borne by CBE-IFB window service process (the Mudarib);
d. The minimum amount required to have such investment account shall be Birr 10,000 (ten
thousand) and Birr 100,000 (hundred thousand) for short-term and long-term investments
respectively. The IFB window shall revise the threshold as required;
e. With regard to deposit duration, there are three options:
i. Short-Term Mudarabah fixed time deposit - shall have investment tenure of up to one
year;
ii. Medium-Term Mudarabah fixed time deposit - shall have investment tenure of
between 2 and 3 years;
iii. Long-Term Mudarabah fixed time deposit account - shall have investment tenure of
above 3 years.
f. Deposit can be made in installment basis if the customer is not able to deposit at once.
However, a minimum of 30% shall be made as down payment and the remaining balance
shall be deposited in the following manner:
i. Three deposit on monthly basis for “6 months investment period account”;
ii. Two deposit on quarterly basis for “12 months investment period account”;
iii. Three deposit on quarterly basis for “18 months investment period account”; and
iv. Four deposit on quarterly basis for “24 months investment period account”;
v. Five deposit on quarterly basis for “3 years investment period account”; or
vi. Six deposit on quarterly basis for the “4 years and above investment period account”.
g. Withdrawal from such account will be entertained in the following manner. The IFB
window shall timely revise such thresholds:
i. Not more than 15% of the total deposit sum in the entire period of deposit for
investment account of 6 months term;
ii. Not more than 25% of the total deposit sum in the entire period of deposit for
iii. Not more than 30% of the total deposit sum in the entire period of deposit for
iv. Not more than 35% of the total deposit sum in the entire period of deposit for
investment deposit of 24 months term; or
v. Not more than 40% of the total deposit sum in the entire period of deposit for long
term investment account.
2.4.2 Accounts in Foreign Currency
Customers who fulfill the eligibility criteria can open foreign currency accounts in line with the
requirements of the NBE in USD, Pound Sterling and Euro Currencies only under the following
permitted account types:
2.4.2.1 Safe keeping Account (Wadiah Amanah)

This is a modality that the Bank keeps customers’ FCY for safety purpose.
Features
a) The minimum amount required for an initial deposit to open this accounts shall be USD
100 or its equivalents in any of other acceptable currencies that can be converted to any of
the three currencies enumerated above;
b) The IFB window service provides the customer with a passbook or certificate of deposit
or cheque book as appropriate;
c) Account operation shall be through the use of formats prepared for this purpose; and
d) No benefit is attached to this account. All profits generated from the use of the funds
belong to the Bank. However, the Bank, at its discretion, can provide holders of such
account with token of appreciation that may take into account, among others, the amount
and period for which the deposit remain with the Bank.

2.4.2.2 Mudarabah FCY Saving Account

Mudarabah or Profit/Loss Sharing foreign currency saving account opened and maintained by eligible
personalities mainly for the purpose of sharing profit from the returns that the Bank earned from
investment financed using such deposit.
Features
a. The IFB window service provides the customer with a passbook or certificate of deposit
or cheque book as appropriate;
b. The minimum amount required for an initial deposit to open this accounts shall be USD
100 or its equivalents in any of other eligible currencies that can be converted to any of
the three currencies enumerated above;
c. Profits (if any) arising from the business venture will be shared between the two parties in
accordance with predetermined profit-sharing ratios;
d. Should the IFB window service suffer losses in its business ventures, the loss will be
compensated using reserve accounts;
e. If reserve accounts couldn’t cover the loss, it will entirely be borne by the
depositor/investor (unless there is evidence of gross negligence on the part of the IFB
window service);
f. Account that short fall of the minimum deposit requirement, at any given time, shall not
be eligible for profit sharing;
g. Customers are allowed to withdraw from their credit balance without any
restriction/limitation as to its amount and timing; and
h. This account will be operated with the use of formats prepared for this purpose.
2.4.2.3 FCY Current/Checking/Demand Deposit Account-i (Qard)

Features
a. IFB window service provides its customers with cheque books;
b. The IFB-window service undertakes to pay any amounts outstanding in the guaranteed
Current Account in full, in local currency or as the case may be;
c. The IFB-window service may invest all amounts outstanding in this account in such
manner as the Bank, in its absolute discretion, deems fit and no returns of whatsoever
nature (including profit) is paid out on this account;
d. The operation of the account can be performed through the use of checks provided by the
IFB-window service;
e. The minimum amount required for an initial deposit to open this accounts shall be USD
100 or its equivalents in any of other eligible currencies that can be converted to any of the
three currencies enumerated above;
f. Newly opened accounts should be separately kept for three months under the account
status assigned for them. The Senior/Banking Business Officer can, nevertheless, change
the status before the stated period if she/he believes that the customer has been properly
identified;
g. The Bank may request service charge, to be determined from time to time, in relation to
the operation of this account;
h. Profit shall be payable to the account holder only in local currency; and
i. The benefit/profit earned from the Mudarabah balance of this account cannot be
repatriated abroad.

2.4.2.4 FCY Mudarabah Fixed Term Deposit

In this modality, depositors place their fund for profit sharing within specified periods. The IFB
window service accepts investment amount from customers who are looking for short, medium and
long term investment opportunities for their funds. Under this principle, the IFB window service
provides the fund management service and the customer acts as the capital provider.
Features
a. Profit on a fixed-time foreign-currency deposit shall be payable only if the foreign currency
was kept for a minimum period of three months;
b. The IFB-window service can set its own profit rates on investments (fixed-time foreign-
currency accounts);
c. The payment of profit on fixed-time deposits maturing on Sundays, holidays and non-
business working days shall be determined based on the succeeding working day;
d. The IFB-window service shall issue to the depositor an investment or a fixed-time deposit
certificate in her or his name;
e. If the investment fixed-time deposit contact is not closed upon maturity, the IFB-window
service may renew it in consultation with the depositor; and
f. The minimum amount required in an initial deposit to open FCY Mudarabah Fixed term
deposit shall be USD 5,000.00 (five thousand) or its equivalent in any of the eligible
convertible currencies that the bank uses.
The aforementioned FCY accounts of foreign currency can be introduced for those customers (i.e.,
Non-Resident Ethiopian/Foreign Nationals) as Resident and Non - Resident Deposits Account at the
Trade Service-NR/NT & Foreign Transfer IFB-Window in a manner consistent with “Directive No.
FXD/31/2006”- The Opening and Operation of Foreign-Currency Accounts for Non-Resident
Ethiopians and Non-Resident Foreign Nationals of Ethiopian Origin under “Wadia” or “Mudharabah”
Contract.

NOTE: 1. There are also several accounts that are opened for various purposes whose functionality is
similar with conventional bank accounts. Hence, please refer the above detail information
written for conventional bank account for the following accounts.
a. Earmarked Accounts
b. Accounts for Minors
c. Accounts for Interdicted Persons
d. Staff Accounts
e. ECX (Ethiopia Commodity Exchange)-Related Accounts
2. The eligibility criteria and required documents to open IFB local and foreign currency
accounts are similar with conventional bank accounts.
CHAPTER THREE
PAYMENT CHANNELS
3.1 Domestic Channels
3.1.1 Cheque
A cheque is a negotiable instrument instructing a financial institution to pay a specific amount of a
specific currency from a specified transactional account held in the drawer's name with that institution.
Both the drawer and payee may be natural persons or legal entities. Cheques are order instruments, and
are not in general payable simply to the bearer as bearer instruments are, but must be paid to the payee.
Payee may endorse the cheque, allowing them to specify a third party to whom it should be paid.
Features of a Cheque
a. A cheque bears the following elements across its face:
i. The name and emblem of the issuing bank;

ii. The name of the issuing branch;
iii. The date on which the cheque was issued;
iv. The name of the account holder and the account number;
v. The name of the beneficiary/payee;
vi. The amount of money shown in both words and figures;
vii. The cheque ’s number; and
viii. The signature of the account holder.
b. Any deletion on the cheques shall not be accepted;
c. There should be no difference between the amount of money given in words and in figures;
d. The calendar shall follow the language in which the cheque is written; and
e. A cheque is valid for six months from the date of its issuance.
3.1.1.1 Endorsement of Cheques
A cheque should be endorsed on the reverse side thereof. The number of endorsements on a cheque
has no limit as per the Commercial Code of Ethiopia, Article 844 (1).
The following are the types of endorsement that are applicable in the CBE:
a. Self: if the cheque is issued for “self,” the Bank should ascertain that the cheque has been
endorsed by the drawer.
b. Cash or bearer: if the cheque is drawn to the bearer or cash, the Bank should make sure that
the cheque has been endorsed by the presenter.
c. Specified person: the beneficiary/payee of the cheque has to be identified and shall endorse the
cheque.
d. If the cheque is issued to the order of the specified person followed by the word “only,” or if
the word “payee only” is written on the top left corner of the face of the cheque, only the
payee/beneficiary is allowed to cash the cheque.
e. If the cheque is issued in the name of organization, corporation, cooperative, association, or
government body, it will not be paid in cash, but will be credited to the beneficiary’s/payee’s
account. To be endorsed, the cheque must bear a seal of the beneficiary and signature of the
depositor.
f. If the cheque is issued to the order of two individuals, both beneficiaries/payees will have to be
identified and shall endorse the cheque drawn in their favor.
g. If the cheque is issued in the name of alternative individuals, either of the individuals must be
identified and shall endorse the cheque.
h. Crossed cheques shall not be paid in cash, but deposited into the accounts of the
beneficiaries/payees thereof.
3.1.1.2 The Use and Transferability (Negotiability) of Cheques

a. Crossed Cheques
Such Cheques bear two transverse lines across their faces. They can be paid by crediting to the
account. Such cheques are transferable by endorsement only if they are to be credited to an
account.
b. The Restricted Negotiability of Cheques

Cheques bearing phrases such as “Payable to account,” “Account payee only,” in addition to
general crossing, can be credited to her or his account.
c. Cheques Issued in the Names of Organizations or Legal Entities

Unless they are restricted by the conditions explained under items a and b herein above,
cheques issued in the names of organizations are transferable to other organizations or
individuals like any other cheques, if they have been sealed and endorsed. If the cheque is
endorsed to an individual; however, she/he should bring a confirmation letter from the last
endorsing organization and should be credited to customer account only.
N.B. Cheque issued in the name of organization or legal entities should not be paid in cash.
3.1.1.3 A Stop-Payment Order

A stop-payment order on the Cheque can be placed for various reasons as might be given by the
account holder.
a. At the time a stop-payment order is placed, there must be sufficient fund in the account that
covers the value of the cheque requested to stop payment;
b. The amount of money on the cheque under the stop-payment order will not be withdrawn
until the account holder gives, in writing, an order to cancel the stop-payment order;
however, the placement of stop payment order shall be cancelled upon the expiry date of
the cheque or by the court order;
c. The stop payment sanction shall be released if the drawer fails to produce police evidence
within 15 working days that show the stop-cheque-payment order was in fact requested as
the cheque was lost or stolen;
d. In the case of an overdraft account, the branch shall first “Stop” the cheque on the system
and send written request to credit CPC at head office/district stating the reason, the
amount and other particulars to deduct the amount from the approved limit; The credit
CPC in its part shall respond by deducting the limit or state the reason if otherwise to the
requesting branch as soon as possible; and
e. When a blank cheque is reported to have been lost, the account holder is not obligated to
deposit money to her/his account when she or he presents the stop-payment order.
However, the customer shall be advised that if the reported cheque is not blank or issued
cheque to customer shall make her/him liable.
3.1.1.4 Insufficient Fund Cheques

There are instances where a customer could make an honest error in her/his bookkeeping. Such a
customer could have cheque(s) that is/are deposited in her/his account and not cleared or returned. She
or he could also have local or foreign transfers, or an approved loan not credited to her/his account due
to the incompleteness of various internal operations, the pertinent procedures of the Bank, etc. These
instances could be considered to be acceptable excuses for the customer for issuing insufficient fund
cheques. In general; however, it is quite easy to determine if a customer is knowingly issuing
insufficient fund cheques.
To properly control insufficient fund cheques:
The branch shall take the following action as appropriate (as per the NBE Directive No SBB/64/2016);
a. Record the incident for the first time in the Dishonored Cheque Register; and restricted all
debit (outgoing) transactions against this account until the dishonored cheque is fully paid
to the payee or equivalent amount is blocked pending the payment to the payee;
b. Record the incident for the second time in the Dishonored Cheque register, restricted all
debit (outgoing) transactions against this account until all the cheques which have been
dishonored & registered hereinabove are fully paid or equivalent amount is blocked
pending the payment to the payee(s); and levy a fine of 3% of the amount appearing on the
cheque dishonored for the second time but not exceeding Birr 25,000 (twenty five thousand
Birr);
 If there is no sufficient fund in the account even to cover the charges,
nonetheless, leaves Birr.1.00 in the account balance, debits the customer’s
account with the remaining amount and does close follow-up on the customer’s
account to recover the unpaid charges.
c. Record the incident for the third time in the dishonored cheque register, close the account,
levy a fine of 5% of the amount appearing on the cheque dishonored for the third time but
not exceeding Birr 50,000 (fifty thousand Birr) and make every effort possible to collect all
unused cheque leaves & pads from the drawer and report same to CATS CPC to close such
persons demand deposit account in all CBE branches and inform NBE;
d. Notwithstanding provisions under (a) and (b) debit charges like legal, insurance,
advertisement, such other non-cash transactions, accrue interest against overdraft accounts
against a blocked account; and the bank may unblock the account and make the fund
available to the drawer;
i. If the drawer presents the dishonored cheques to the bank or the payee(s) may appear
in person to the bank and confirm in writing that the dishonored cheques have been
fully settled; or
ii. If the payee(s) fails to appear to receive a full payment after lapse of six months of
presenting the dishonored cheque.
e. Those account holders who fulfill their obligation shall be deleted from the dishonored
cheque register per the following table.
Description Status Action
1st time incident Full settlement of the claim or blocking of Shall be canceled from
equivalent amount and has not drawn dishonored cheque
other dishonored cheques for the second register
time at least for 12 consecutive months.
2nd time incident Full settlement of the claims or blocking Shall be canceled from
of equivalent amount and has not drawn dishonored cheque
other dishonored cheques for the third register and be
time at least for 24 consecutive months. considered as clean
3.1.2 Local Money Transfer

Local transfers also known as a wire transfer or credit transfer which is transferring money from one
person or institution to another. A local transfer can be made from one customer bank account to
another customer bank account or through a transfer of cash at branch for the purpose of salary,
pension, settlement of trade transactions, standing order, getting service (eg.,ET-pay at bank), and etc.
The transfer request can be initiated by the customer using letter of instruction or standard forms
prepared by the bank.
General Conditions for Money Transfers

a. The bank accepts transfer request of customers either in cash or by instruction to debit
customers’ account;
b. Customers can transfer money from their account maintained in CBE into another account or to
be paid in cash. In addition to using internet, mobile and ATM channels, account holders can
use the following modalities to transfer money from their account:
1. Using Cheque Transfer: Account holders’ can transfer money to their customers’ account
without the presence of the payee;
2. Using Account to Account format: individual customers can transfer money using the
format designed for the purpose after proper identification and verification is completed ;
3. Letter of Payment Instruction: Corporate Customers can transfer money using letter of
payment instruction to effect payment through bankers’ cheque (CPO)/fund transfer/local
money transfer. However, the transfer initiated through payment letter of instruction should
only be allowed for the following purpose of payment stated hereunder:
i. To any government/public enterprise account;
ii. To their own, subsidiary/branch or company accounts;
iii. To employee salary accounts;
iv. To place standing instruction (when the account holder places the instruction in
person); and
v. Irrespective of the purpose of payment stated from i-iv, the Manager Business
can authorize letter of payment instruction of corporate customers based on the
strength of the KYC made on the customer and following the delegation
procedure hereunder.
Any letter of payment instruction /request for collection or receiving of advice, of cheque
books and returned cheques originated from corporate customers shall be presented to the
branch by duly delegated person in writing.
3.1.3 Foreign Money Transfer

Foreign money transfer shall be made for Education, correspondence fee, seminar, training,
symposium, workshop, conference, membership fee, medical fee and other similar purposes in line
with the pertinent directive of the NBE and the direction of the bank. The basic requirements for
transferring money is having foreign exchange permit from the bank. Anyone whose age is above 18
and legal entity can receive money remitted in his name but need to produce renewed ID to receive
money.
Documents required to get foreign exchange permit
For Medical Purpose
a. Medical Board Certificate authenticated by Ministry of Health.
For Salary
a. Employer should be customer of CBE;
b. Employment contractual agreement;
c. Passport; and
d. The employee should be account holder of CBE.
For Government Transfer
a. Account holder of CBE; and
b. Authorization letter.
For Education Purpose
a. Payment request letter from the institute.
3.2 Alternative Channel
3.2.1 Online Banking
3.2.1.1 Mobile Banking

Mobile banking refers to the provision and providing of bank-related financial services with the help
of mobile telecommunication devices. The most common payment services available on mobile
payment include fund transfers between accounts, bill payments, prepaid mobile air time recharge,
payments, balance enquires, account alerts, and customer services.
Mobile payment is becoming prominent as it enables “anywhere anytime banking”. Unlike to the other
electronic payment channels (ATMs, POS, Internet), it does not pose a limitation on customer as
customers requires only their mobile phones to get access to their accounts while waiting for a bus,
while traveling, during at late at night etc. this is very beneficial particularly for developing countries
like Ethiopia where customer’s access to internet is very much limited while the peace of mobile
phone usage has shown an explosive growth which also shows the potential for mobile banking.
Mobile banking channels functionalities

USSD, XHTML, downloadable and smart applications mobile banking functionalities:
a. My account balance: enables to view real balance with account currency types and last 4 digits
of customer’s account number. The menu also allows to view last 10 transactions;
b. Own account transfer: allows transferring money from one account to another own account;
c. Make Payment to Beneficiary: allows to transfer money to pre-defined beneficiary;
d. Payment to others: allows money transfer to any CBE account holder;
e. Local money transfer system (LMTS): enables money transfer or initiate local money
remittance service to banked/un-banked receiver. The remitter and the receiver would get
message with security code; the receiver can collect money from any CBE branch by presenting
security code;
f. Manage beneficiary: allows to predefine beneficiary details for payment and also to add, list
and delete predefined beneficiary;
g. Standing orders: allows to view/check status of standing order already defined internet banking
service;
h. My service: enables customer to change his/her PIN and de-subscribe service (stop mobile
banking service);
i. Cheque book request: allows customer to place request for cheque book. The menu shall be
provided upon customer’s request;
j. Cheque book status: enables customer to view whether requested book issued. The menu shall
be provided upon customer’s request;
k. Cheque book detail: allows customer to view whether cheque leaves paid or not. The menu
shall be provided upon customer’s request;
l. Exchange rate: enables customer to view prevailing exchange rates of foreign currencies. The
menu shall be provided upon customer’s request;
m. Loan repayment schedule: enables customer to view repayment schedule on her/his loan. The
menu shall be provided upon customer’s request; and
n. Future dated transfer: enables customer to view future dated transfer from own account. The
menu shall be provided upon customer’s request.
Eligibility
a. CBE account holder is eligible to subscribe Mobile Banking Services;
b. Customer with power of attorney entitlements are designated to use mobile banking service; and
c. Customer with impaired/no vision if and only if the customer agreed to sign the undertaking
letter/form in the presence of witnesses.
Renewal period
a. Mobile banking services shall be renewed every three year with renewal fees.
3.2.1.2 Internet Banking
It is an electronic service provided by the Bank to allow customer to perform transactions, payments
etc. over the Internet - through a bank’s secure website. Banking is now no more limited in going and
visiting the bank in person for various purposes like depositing and withdrawing money, requesting for
account statement, stop payment, etc. All these tasks and many more can be done using the online
services offered by the bank.
Internet banking is becoming the predominant banking for both informational as well as transactional
medium. Internet banking allows the growth and expansion of ecommerce without geographic
limitations through the worldwide web. For corporate customers, it offers a cash management package
which is crucial for fund management decisions.
The CBE has implemented “TEMENOS ARC internet banking” to provide a modern, scalable and
fully integrated personal and corporate internet banking solution. The personal and corporate internet
banking solution of the bank supports various functionalities and security features.
1. Personal Internet Banking

The personal internet banking services of CBE supports the following functions to the customer:
a. Account balances: which allows viewing a real time account balances.
b. Account transaction details: allows viewing, printing and downloading a given period or
dates of transactions or statements into a spreadsheet in CSV and HTML format.
c. Create/View and Cancel Standing orders: allows creating, viewing & canceling a new
standing order for automatic payment or fund transfer to predefined beneficiary or any account
holder of CBE and viewing the standing orders created.
d. Create/ view /delete beneficiary (for payments): this function allows customer to predefine
beneficiary details for payments with different risk attributes and ceiling limits. There is also
option to make amendment to beneficiary and delete a particular beneficiary.
e. Local Money Transfers: this function is under payment menu which allows transferring
money or initiating local money remittance services.
f. Messages sent to/ from the bank: allows sending and receiving messages securely.
g. Payment: This function enables Customer to transfer of funds from his /her own account, to
predefined beneficiary and to any person that maintain an account with CBE.
h. Setting: - this menu helps the customer to change their password and to see login history.
i. Utility payment: that allows making payment to utilities such as water, electricity and
telephone bills once the utility companies are ready to entertain online payments.
j. Cheque book request and cheque book status – allows request of cheque book and follows
up the status of same.
2. Corporate Internet Banking

The functionalities supported by corporate internet banking services include the following:
a. Accounts: under this menu, customers can view their account balances, “today’s transactions”,
statements and download and print statements for a given period or dates.
b. Asset and liability: shows current asset and liabilities position of the company’s specific
accounts registered for corporate internet banking services.
c. Bulk payments via file upload: allows set up periodic payroll payments with multi- level
authorizations.
d. International Payment: enables customers to initiate or request their specific branches for
outward remittance services via internet banking.
e. Letter of Credit: an organization can apply for a letter of credit to Trade Service CPC.
f. Local Money Transfer: customer can make local money transfer from their LCY or FCY
accounts. The beneficiaries receive the money in local currency.
g. Manage user: is available for admin user using this menu, the admin can assign duties to
corporate inputter and authorizer.
h. Messages sent to/ from the bank: allows sending and receiving messages securely.
i. Setup /reverse Sweep accounts: customers can set up limit on their account beyond which the
balances are automatically transferred to the designated account. The customer can also reverse
the sweep level by their own.
j. Standing orders: allows creating a new standing order for automatic payment or funding
transfer to predefined beneficiary or any account holder of CBE.
k. Transfer between own accounts: allows a transfer between various account of the same
customer (one customer ID). Transfer of funds can be automatically effected from local
currency account to local currency account, from Foreign currency accounts to local currency
accounts, foreign currency account to foreign currency account of the same customer and
accounts.
Eligibility
a. All CBE account holders are eligible to subscribe CBE internet banking.
Required documents for identification

a. Renewed Identification Cards or Passports; and
b. Letter from corporate customer’s for internet banking service request through their mandated
body /officials which stating cooperate user right as Administrator, Inputter and Authorizers
with respect to their authorizing transaction limit.
Renewal period
a. Internet banking services shall be renewed every three years subject to renewal fees.
3.2.2 Card Banking
3.2.2.1 Point of Sale (POS)
Point of Sale (POS) as an electronic payment channel facilitates purchase of goods and services using
payment card. It is a noncash alternative that allows customers to purchase goods and services through
instant transfers of funds from their accounts to merchants. The use of point of sale can be extended to
paying bills, recharging prepaid mobile, and fund transfers. However, POS can also be used for cash
advance services which allows manual cash disbursement by bank tellers while automatically posting
transactions. In such cases, POS are used as a substitute to ATMs.
3.2.2.1.1 POS Acquiring Businesses
POS Terminals are utilized in businesses ranging from retail shops to large businesses where massive
transactions made with exchanges of high financial value. The most common merchant categories
relevant to existing businesses in Ethiopia include:
a. Financial, Non-Financial and Micro-Finance Institutions, Insurance Companies etc;
b. Airlines, Travel Agencies and Tour Operators, Car Rental Agencies, Courier Services, Duty
Free Stores;
c. Hotels, Motels, Resorts, Lodges, Recreation Services, Beauty and Barber Shops, Massage
Parlors;
d. Office and Household Furniture, Construction Materials, Electrical Equipment and Parts;
e. Computers and Computer Peripheral Equipment and Software, Stationeries, Books, Periodicals
and Newspapers;
f. General Merchandise, Groceries and Supermarkets, Restaurants and Café;
g. Clothing and Shoe, Jewellery, Watches and Clocks, Cosmetic Stores;
h. Businesses organized as sole proprietorship, partnership, share companies, etc.
i. Public and Governmental organizations;
j. Educational Services, Universities, Colleges, Schools and Medical Services; and
k. Other legal entities engaged in purchase and sales of goods and services etc.
3.2.2.1.2 Requirements for acquiring POS terminal

Potential merchants shall fulfill the following requirements in order to apply for POS service:
a. Opening/ Maintaining account at CBE branch;
b. Holding renewed Trade License and TIN Certificate (for all businesses);
c. Filling Merchants Application Form; and
d. Signing Merchant Contract Agreement with the Bank.
3.2.2.1.3 Requirements of merchant recruitment

The following basic requirements shall be fulfilled before deploying POS terminals:
a. Copy of merchants renewed trade licenses;
b. Copy of merchants VAT registration certificates;
c. Copy of merchants TIN certificates;
d. Valid contract agreement between the Bank and merchants; and
e. Designation of accounts for transactions settlement.
3.2.2.1.4 Restrictions in merchant recruitment

It is recommended to disregard merchants with whom it would be not viable to do business with, i.e.:
a. Merchants with track record of bad debt(s) or whose business performances show instability;
b. Merchants operating in socially-unacceptable businesses which may damage Bank’s image;
and
c. Merchants with major physical limitations or visible communication problems.
3.2.2.1.5 Manual card entry transaction on POS
Factors that require manual card entry transaction

a. Point-of-sale terminal (POS) fail to detect card’s magnetic stripe or EMV data on card; and
b. When merchants request authorization through phone/ mail /fax (without cards transactions).
Required information for manual card entry transactions
a. Full card number (Primary Account Number);
b. Copy of ID or Passport; and
c. Expiration date.
Merchants eligible for manual card entry transaction
a. CBE corporate/premium customers;
b. Hospitals, luxury collection and star- rated hotels;
c. Supermarket with chain outlets and restaurants; and
d. Travel agents.
3.2.2.1.6 Voice authorization
1. Conditions that require voice authorization

When merchants fail to make transactions on POS terminals due to:
a. hardware/software problems like modem profile errors, tamper or system malfunctioning, SIM
card failure, card reader not performing or other related cases; and
b. Communication failure or time-out problems. Merchants can call/ send e-mail or Fax to get
transactions done centrally.
2. Merchants eligible for voice authorization
a. CBE corporate/premium customers, hospitals, luxury collection and star- rated hotels, grand
supermarkets with chain market outlets and restaurants and travel agents.
3. Information required for voice authorization
a. Cardholder’s information:
i. Full card number (Primary Account Number);
ii. Expiry date; and
iii. Amount.
b. Merchant Information:
i. Merchant Voice Authorization (VA) ID /Code;
ii. Merchant’s Address; and
iii. POS ID / Merchant’s ID.
c. Caller Information:
i. Name; and
ii. Telephone Number.
3.2.2.2 Automated Teller Machine (ATM)
ATM is a cash dispensing machine, accept cash and checks as deposits, enables account access, allows
fund transfers, bill payments, coupon and ticket selling, and mobile phone air time recharging. The
latest innovation for the ATM includes cash-in facility with recycling intelligence whereby the ATMs
accepts cash deposits and allows cash withdrawal with recycling facilities. The other latest innovation
for the ATMs include foreign exchange facility where by the ATMs have the intelligence to accept
defined foreign currencies and convert to local currency. The ATMs are identified as a transitional
channel towards noncash alternatives, since it still offers cash dispensing possibilities efficiently as
there is no human intervention.
3.2.2.3 CBE Birr

CBE‘s mobile money service mainly designed to create access to the un-banked and un-served
population of the society through their mobile by having a contractual agreement with customers,
agents and merchants.
3.2.2.3.1 Functionalities and features of CBE Birr

a. Fund Transfer
CBE Birr Virtual/ Account to Virtual Account
i. Person to Person (P2P);
ii. Business to Person ( B2P);
iii. Person to Business (P2B);
iv. Business to Business (B2B);
v. Government to Business (G2B); and
vi. Government to Person (G2P).
b. Cash deposit and cash withdrawal at agent outlets
c. Payment
i. Bill payment at agents’ /merchants’ outlets;
ii. Pay bill service with billers; and
iii. Payment for goods and services at merchants’ outlets.
d. Air time recharge/top up
e. Bulk service/file upload
i. Salary Payment;
ii. Customer account opening; and
iii. Agent account opening.
f. Account management (Non-financial services)
i. Balance enquiry;
ii. Mini statement;
iii. PIN change;
iv. Change language;
v. Change secrete word;
vi. Manage beneficiary; and
vii. Request for voucher:
 Request cash in voucher;
 Request cash out voucher.
3.2.2.3.2 CBE Birr Accounts

A. Customer Account
i. Definition, eligibility and Document Requirement
It is an account maintained in CBE Birr system which is used to deposit and withdraw money
electronically.
Eligible Entities
a. All Ethio-Telecom SIM subscribers;
b. Account should be opened by individual’s name;
c. An individual’s ages greater than or equal to 18 year old; or
d. Individuals whose age is greater than or equal to 14 are eligible for CBE Birr service as
long as they are able to provide cell phone number; and
e. A customer can open more than one account with different cell phone numbers.
Required document for identification
One of the following valid identification cards (IDs) shall be acceptable to open customer CBE
Birr account:
 Keble ID cards;
 Farmer’s associations‘ ID cards;
 Employment and pension ID cards;
 School, college and university ID cards;
 Driver‘s/operator‘s licenses;
 Tax identification ID card;
 Passports or Ethiopian community ID;
 Passport for foreigners; or
 Work or residence permits.
ii. Customer Level (Classification)
The customers are classified based on the level of KYC information found in the CBE Birr System.
This classification shall be:
a. Level Three Customers (CBE Staff)
The CBE staff that has been registered at the CBE branches can be categorized as a level three
customers and eligible to access all CBE Birr services.
b. Level Two Customer (Registered with Full KYC Information)
 The customer who completes all KYC information required by the CBE Birr; and
 Eligible to access all CBE Birr services.
c. Level One Customer (Self Registered Customer)
A customer who registered using her/his own handset and KYC information captured on
customer’s full name and date of birth. The customer is eligible to access all CBE Birr service
except sending of money.
d. Level Zero Customers (Customer Created by the CBE Birr System)
The CBE Birr system instantly registers unregistered customer mobile number and creates an
account when a fund is transferred to unregistered customer. This customer is classified as
level zero customer with no KYC information. It can be upgraded to the next level after
completion of the minimum KYC information dialing to *847# or at the nearby CBE Birr
Agents.
B. Agent Account
i. Feature, eligibility, required documents, Non -Acceptable Business Type, Prohibited Service,
Allowable Agent Banking Services
Features
It is an account which is used for money deposit and withdrawal service for agents.
Eligible Entities
Any person who is engaged in valid and lawful business or commercial activity within Ethiopia
can be an agent and fulfill the following eligibility criteria;
a. An Ethiopian national;
b. At least one year business experience;
c. Renewed trade license and/or tax identification number (TIN);
d. A valid and renewed ID card of the person who is authorized to operate the account;
e. Free of any illegal activities and able to provide police clearance certificate; and
f. Deposit minimum required amount for agent banking.
Required documents
a. Required documents for sole proprietorship:
i. Copy of renewed trade license;
ii. Copy of tax identification number (TIN); and
iii. A valid and renewed ID card of the person authorized to operate the account.
b. Required documents for financial institutions (Microfinance, Insurance), partnership,
Share Company, cooperative societies, authorized dealers operating one or more outlets
across Ethiopia. Other retailers with a substantial distribution network like petrol stations,
distributors, supermarkets etc.
ii. Copy of tax identification number (TIN);
iii. Memorandum & Articles of Association;
iv. Resolution of the Board of Directors to open an account and identification of those who
have authority to operate the account, if applicable; and
v. A valid and renewed ID card of the person authorized to operate the account partnership
and share company.
Non -Acceptable Business Type
a. A foreign person or entity that is fully or partially owned by foreign nationals;
b. Religious entity; and
c. Not-profit such as non-government organizations whose applicable law prohibits from
engaging in profit making business shall not be an agent of CBE Birr.
Prohibited Service of an Agent
A CBE Birr Agents shall not:
a. Ask any charge from customers in addition to charges fixed by the bank;
b. Perform any transaction by cheque and any other operation related with provision of
credit;
c. Ask any personal information like account details and PIN number of the customer;
excluding KYC information;
d. Be allowed to appoint another sub-agent to provide banking services on her/his behalf
unless agreed and accepted by bank terms and conditions; and
e. Be allowed to undertake a foreign exchange transaction.
Allowable Agent Banking Services

CBE Birr agents perform all of the following functions depending on the agency agreement;
a. Open account;
b. Perform customer awareness;
c. Perform cash deposit;
d. Perform cash withdrawal;
e. Transfer funds between different parties; and
f. Payment services (such as Air Time Top Up, Bill Payment Salary Payment etc.).
ii. Agent Hierarchy

a. Level One Agents (Top Agent)
A CBE Branch and any agent with more than one outlets or branches can be classified as a level
one. However, only CBE branches are allowed to create other agents; whereas all top agents can do
the following activities:
i. Access the system through web portal; and
ii. Handle transaction of deposit and withdrawal, bulk payments and others.
1. CBE Birr Branch Top Agents Functionality

 Deposit;
 Withdrawal;
 Creation of agents;
 Creation of merchants;
 Salary payment;
 Business deposit; and
 Business withdrawal.
2. Company /Organization Top Agent Functionality
 Deposit;
 Withdrawal;
 Salary payment;
 Business deposit; and
 Business withdrawal.
b. Level Two Agents (Sole Agent)
Level Two or Sole Agent with one outlet or branch is allowed to do the following activities:
i. Access the system through web portal;
ii. Handle transaction of deposit and withdrawal, bulk payment and others; and
iii. Perform regular agent banking activities.
Level Two Agents (Sole Agent) Functionality
 Cash deposit;
 Cash withdrawal for registered/Unregistered;
 Pay bill;
 Sell airtime;
 Business deposit;
 Business withdrawal;
 Business transfer;
 Deposit; and
 Withdrawal.
c. Level Three Agents (Agent)
Level Three or Agent with one outlet or branch is allowed to do the following activities
i. Access the system through web portal /USSD; and
ii. Perform regular agent banking activities.
Level Three Agents (Agent) Functionalities
 Cash deposit;
 Cash withdrawal for registered/unregistered;
 Pay bill;
 Sell airtime;
 Business deposit / withdrawal; and
 Business transfer.
C. Merchant account
i. Merchant Services, eligibility and required documents
Merchant Services
CBE Birr merchants perform all of the following functionality depending on the merchant agreement;
a. Sale;
b. Reversal;
c. Withdrawal;
d. Business Withdrawal; and
e. Business transfer.
Eligible Entity
Any person who is engaged in valid and lawful business or commercial activities can be a CBE Birr
merchant.
Required documents
1. Required documents for individual trade operator
i. Copy of Renewed Trade License;
ii. Copy of tax identification number (TIN); and
iii. A valid and renewed ID card of the person authorized to operate the account.
2. Required documents for partnership, Share Company, cooperative societies, retailers with a
substantial distribution network like petrol stations, distributors, supermarkets and any other legal
entity who has business activities.
ii. Copy of tax identification number (TIN);
iii. Memorandum & articles of association;
iv. Resolution of the board of directors to open an account and identification of those who have
authority to operate the account, if applicable; and
v. A valid and renewed ID card of the person authorized to operate the account.
ii. CBE Birr Merchant classification

1. Top Merchant
a. More than one sales outlet/ branches;
b. More than one operator;
c. Access the system through web portal; and
d. Handle transaction of withdrawal, bulk payment and others.
2. Merchant
a. One sales outlet or branch.
CHAPTER FOUR
SERVICES
4.1 Muday Bank Service

Features
a. It is offered by the bank to accumulate and save money in designated box and deposited in
to the respective customer account;
b. It shall be provided by the bank with dual control; and
c. It is mainly designed for petty traders, semi-skilled workers, small holding farmers, shoe
polishers and other self employed individuals.
Eligibility Criteria and Required Documents
a. Please refer eligibility criteria and required documents stated on ordinary saving accounts.
4.2 Safe Deposit Box

It is a type of service which is given to customers to store valuable items. It can be rented on
annual basis as per its eligibility criteria and document. The service is rendered on branches that
have safe deposit box. This service is also available in IFB account as Trustee Safe Custody
(Wadiah Yad Amanah) in which:
4.2.1.1.1 The bank cannot use these assets as they are for safekeeping; and
4.2.1.1.2 The customer pays service charges by taking into account the value and the
period for which the item kept as per the Bank’s terms and tariffs.
General feature of safe deposit box
a. Whenever a customer wishes to have a Safe Deposit Box, the customer should maintain
an account in CBE. She/he should be interviewed by Manager-Business and should be
requested to complete the standard agreement designed for this purpose;
b. This agreement contains the date, customer name, customer account number, and the
Safe Deposit Box Number, the annual rental fee, renewal date, terms and conditions of
the agreement, customer signature and authorized signature by the bank;
c. When the first annual rent and a Safe Deposit Box key guarantee collected from her/his
account, the bank issues two keys which fit only her/his safe deposit box lock;
d. The minimum period of accepting a safe deposit box shall be one year;
e. The maximum period for safe deposit box rental agreement is nine years, but the rent
shall be collected annually (one year rent only). For any change on the rent amount, the
customer shall not be charged or refunded for the difference on the charge until the
prepaid period elapsed; and
f. When the safe deposit box needs to be broken and opened by the Bank due to the
reasons stated on the safe deposit box agreement. The Box will be opened in the
presence of a safe deposit custodian (Banking Operation Manager), Branch
Manager and court official as per commercial code Art 923(2) who will make an
inventory of the contents of the Box, and the contents will be kept in a vault or safe of
the Bank until final a ruling by the court is made.
Eligibility Criteria and Required Documents
a. Please refer eligibility criteria and required documents stated on ordinary saving
accounts.
4.3 Cash Pick Up
Features
a. It is a cash collection service provided for premium customers from their premises on
pre-arranged schedule and agreement based on customer’s strategic relationship with
the bank, volume of sales & foreign currency earning; and
b. This service is offered to create high customer satisfaction and maximize resource
mobilization.
Eligible entities
a. CBE Account Holder; and
b. Business and Premium Customers.
Required Documents
a. Request Letter.
4.4 Cashier Implant

Features
a. It is a service provided for premium customers by assigning employee/s of the bank on
their premises on the basis of contractual agreement between the bank and the premium
customer based on the volume of transaction.
b. This service is offered to create high customer satisfaction and maximize resource
mobilization
c. Collection service from client’s customer of the premium customers of the particular site
could be in the following forms:
i. In the form of cash;
ii. Cheque deposit;
iii. Account to account transfer; and
iv. Through POS machine.
d. Collection services are given at clients selected location as indicated on contractual
agreement;
e. Cash withdrawal shall not be entertained on premium customer sites; and
f. The service shall be provided for premium customer requesting the service by
considering the customer’s strategic relationship with the bank, volume of sales & foreign
currency earning; and
Eligible entities
a. CBE Account Holder; and
b. Premium Customers.
Required Documents
a. Letter of request.
4.5 The Grand Ethiopian Renaissance Dam Bond
Features of the Grand Ethiopian Renaissance Dam Bond (GERD)
a. Shall have either interest bearing or non- interest bearing;

b. Denomination starting from Birr 25 to Birr 1 million and has serial number;
a. Shall have buyer’s name and signature;
b. The GERD bond maturity is from 1-5 years and above 5 years. The bond can be redeemed
from 1 to 5 years and above 5 years, which shall be on yearly basis;
c. Interests earned from the GERD bond is tax-free; and
d. The GERD bond is transferable to third party:
i. For Bonds which mature from 1-5 years, the Bond buyer can redeem bond value at
least after one year from the issuance date, i.e. the GERD bond buyers cannot redeem
the principal value before one year. Furthermore, the GERD bonds which are
redeemed after one year but before maturity date are subject to penalty charge on the
accrued interest;
ii. For the GERD bonds maturing above 5 years, the bond buyer can redeem bond value
at least after three years from the issuance date, i.e. bond buyers cannot redeem the
principal value before three years. Furthermore, the GERD bonds which are redeemed
after three years but before maturity date are subject to penalty charge on the accrued
interest; and
iii. Shall have stamp of the Ministry of Finance and Economic Cooperation (MoFEC) and
signature of the Minster.
General issues and conditions in GERD bond operation
a. The minimum value of bond to be purchased is Birr 50 in Ethiopia and Birr 500 outside
Ethiopia. However, there is no maximum purchasing limit;
b. Lost and mutilated bond coupons after their sale should not to be replaced with other
coupons; but the bond buyer shall be provided with equivalent evidence/certificate after
verifying the authenticity of the loss or mutilation by bond selling branch;
c. Interest shall be calculated starting from the issue date and paid semi-annually on June 30,
and December 31;
d. A bond holder can redeem the principal amount and collect the interest earned on the bond
from the selling CBE branch;
e. Principal redemption date is at the end of agreed maturity date and shall be redeemed by the
selling Branch;
f. If the GERD bond buyer wants to be redeemed before maturity date, the request shall be
lodged to DBE; and
g. Tears, water-wash, fire-burn, or partial/complete damage during stamping, packing, or
transportation before its sale and mistakes made when writing on the blank spaces of the
coupons during the sale lead to cancellation of the bond coupons. Such bond coupons
should be stamped or written on them “Void”. Voided coupon must be reported regularly
and with the voided coupon(s) sent to the Head Office of DBE in the same way as the other
activities of the bond sales.
Eligibility to buy the GERD Bond
a. All Ethiopians rural and urban communities, micro enterprises, cooperatives, public and
private enterprises, organizations, individuals and other sections of the general public;
b. Foreign nationals of Ethiopian origin and non-Ethiopian origin with residence permission;
and
c. All Ethiopians and foreign nationals of Ethiopian origin living abroad.
Required Documents
a. For those 18 and older are - Kebele ID or employment ID;
b. For minors - birth certificate; and
c. For student - school or Kebele ID.
4.6 Passport Registration
Features
a. It is a service provided as per the agreement between CBE and Immigration and National
Affairs to facilitates the registration process for new and replacement of lost/damaged
passport request;
b. The service is provided on selected branches of CBE;
c. It is provided on fee basis based on the size of the passport as follows:
 Regular passport with 32 pages, fee birr 600;
 Urgent passport with 32 pages , fee birr 900;
 Passport with 64 pages , fee birr 1600;
 Urgent passport with pages of 64, fee birr 1800.
Eligibility Criteria and required documents
i. For those Customers Whose Age is above 18 years old and Request New Passport
a. Renewed Keble Identification Card ;
b. Unexpired Government Employee’s Identification Card ;
c. Valid temporary or “lessee passé” identification card for Ethiopian returnees;
ii. II. For those Customers whose Age is below 18 years old and Request New Passport
a. Hospital Birth Certificates for those customers whose ages is below 6 months old;
b. Birth certificates from Acts and Documentation office for those whose age is on or above 6
months old;
c. Parent’s acceptable Identification cards like passport, valid government employees Id or Keble
ID ;
d. If the request for a passport is other than the parents such as through power of attorney, a tutor or
guardian then request relevant documents from the issuing relevant government organ.
Other Services
CBE under its business operation units/through branches/ may undertakes different services such as
collecting utility bills, taxes, selling of shares and bonds upon contractual agreements made with
different government and private organizations.

Commercial Bank of Ethiopia: Hand Book On Customers' Classification, Feature of Products, Channels and Services

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Commercial Bank of Ethiopia: Hand Book On Customers' Classification, Feature of Products, Channels and Services

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COMMERCIAL BANK OF

Hand Book on Customers’ Classification,

a. Federal Government Entities

b. Charities, societies and associations:

ii. Individual Trade Operators (Sole Proprietorship)

iii. Private Limited Company

a. The share company’s renewed trade license and principal registration;

vi. Institutions for Higher Learning

2. Private Schools, Colleges and Universities

vii. Federal Budgetary Institutions

viii. Regional/City/ Administration Budgetary Institutions

a. A certificate of registration issued by the appropriate authority. If the cooperative is in

xi. Labor Unions

a. A certificate of registration obtained from their respective organizing authorities;

xiii. Religious Organizations

1. The Ethiopian Orthodox Tewahido Church

2. The Ethiopian Islamic Affairs Organization

3. The Ethiopian Catholic Church

4. The Ethiopian Evangelical Church Mekane Yesus

1. Accounts for Minors (Teen youth)

a. A proper letter of application submitted by the parent on behalf of the minor;

xv. Account for Share Companies under Formation

xviii. Accounts Opened to Manage and Control Project Fund

xix. Acceptable identification cards and their contents

 Employment and pension ID cards;

b. Contents of Acceptable ID cards:

2.1.2 Women’s Saving Account

a. Please refer the required documents stated under 2.1.1.

2.1.3 Youth Saving Account

2.1.4 Teen Youth Saving Account

2.1.5 Education Saving Account

2.1.6 Accounts for Minors

a. It is a saving account opened for individuals below the age of 18;

b. All individuals who age is below 18.

a. A proper letter of application submitted by the parent on behalf of the minor;

2.1.7 Ordinary Demand Deposits

a. It is a non-interest bearing bank account usually operated by cheque;

a. All natural and legal persons recognized by Ethiopian laws;

a. Please refer the required documents stated under 2.1.1.

2.1.8 Special-Demand Deposit Accounts

a. It is operated by passbook that is designed for the purpose;

a. All natural and legal persons recognized by Ethiopian laws; and

2.1.9 ECX Related Accounts

a. The accounts are opened to facilitate commodity trading at ECX;

2.1.10 Fixed Time Deposit Accounts

2.1.11 Staff Accounts

2.1.12 Cash Indemnity Account

2.1.15 Earmarked Account

Eligible entities and Documents Required

2.1.16 Accounts for Interdicted Persons

Eligible entities and Documents Required

2.2 Foreign Deposit Products

2.2.1 Types of Foreign Deposit Accounts

2.2.1.1 NRT FCY Account (Non-Resident Transferable Foreign-Currency Accounts)

a. The source of fund is overseas and in foreign currency;

i. A letter of application which is signed by the ambassador or her/his delegate; and

i. A permit from the NBE;

f. Expatriate Employees of International Organizations

i. A letter of application from the employee;

i. Recipients of Inward Remittances

2.2.1.2 NRT (Non-Resident Transferable Birr Accounts)

Features, Eligible Entities and Required Documents

Features, Eligible Entities and Required Documents