{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2025-01-17","gaps":[],"covered":["EBA Q&A 2022_6421 — Q&A — EMI's application of negative interest rates [Final Q&A] L3"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-26","checked_against":"the EBA publication"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/emd/level-3/q-and-a/eba/eba-qa-2022-6421-emi-s-application-of-negative-interest-rates-to-its-clients","url":"https://www.headlesslaw.com/emd/level-3/q-and-a/eba/eba-qa-2022-6421-emi-s-application-of-negative-interest-rates-to-its-clients","title":"EBA Q&A 2022_6421 — Q&A — EMI's application of negative interest rates [Final 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prepared by the European Commission, published in the EBA Q&A tool · not legislation · published 17 Jan 2025 [Final Q&A]","attribution":{"prepared_by":"European Commission","published_by":"EBA","published_in":"EBA Single Rulebook Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2025-01-17","question_submitted_on":"2022-04-12","locators":{"published_on":"EBA Q&A register entry 2022_6421, field 'Final publishing date'","question_submitted_on":"EBA Q&A register entry 2022_6421, field 'Submission date'"}},"adoption":null}},"provenance":{"official_url":"https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2022_6421","check":{"result":"matched","checked_at":"2026-10-26","against":"the EBA publication"},"repo_path":"spaces/emd/level-3/q-and-a/eba/eba-qa-2022-6421-emi-s-application-of-negative-interest-rates-to-its-clients.md","body_sha256":"1ac6023dd60a8de2966afead96884c6b246331a4034be7a0a2d5aad603d6368d"},"units":[],"markdown":"---\ntitle: \"EBA Q&A 2022_6421 — Q&A — EMI's application of negative interest rates [Final Q&A]\"\nshortTitle: \"EBA Q&A 2022_6421 — Q&A — EMI's application of negative interest rates [Final Q&A]\"\nanswer_id: EBA_QA_2022_6421\nstatus: \"Final Q&A\"\ntype: qa\ninstrument_type: qa\nauthority: EBA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"EMD\"\nemd_level3: true\nmica_level2: false\nlegal_basis: \"Article 12 EMD\"\ndate: 17 January 2025\nsource_link: https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2022_6421\nlifecycle: \"Final Q&A\"\ntext_version: \"EBA Q&A register, 17 January 2025\"\nsource_url: \"https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2022_6421\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the EBA publication\"\nsource:\n  prepared_by: \"European Commission\"\n  published_by: \"EBA\"\n  published_in: \"EBA Single Rulebook Q&A tool\"\n  evidence:\n    prepared_by: \"Answer prepared by the European Commission because it is a matter of interpretation of Union law.\"\n    locator: \"EBA Q&A register entry 2022_6421, field 'Answer prepared by'\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2025-01-17\"\n  question_submitted_on: \"2022-04-12\"\n  locators:\n    published_on: \"EBA Q&A register entry 2022_6421, field 'Final publishing date'\"\n    question_submitted_on: \"EBA Q&A register entry 2022_6421, field 'Submission date'\"\nlifecycle_label: \"Final Q&A\"\n---\n\n**Answer prepared by the European Commission, published in the EBA Q&A tool · not legislation · published 17 Jan 2025 [Final Q&A]**\n\n*Final Q&A · EBA Q&A register, 17 January 2025 · Checked against the EBA publication on 26 Oct 2026 · [Official source](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2022_6421)*\n\n| | |\n|---|---|\n| **Full title** | EBA Q&A 2022_6421 — Q&A — EMI's application of negative interest rates \\[Final Q&A\\] |\n| **Prepared by** | European Commission |\n| **Published by** | EBA, in the EBA Single Rulebook Q&A tool |\n| **Reference** | EBA_QA_2022_6421 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 17 January 2025; question submitted 12 April 2022 |\n| **Legal basis** | Article 12 EMD |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the EBA publication |\n\n**EMI's application of negative interest rates to its clients**\n\n### Question\n\nIs an electronic money institution (EMI) allowed to apply negative interest rates to its clients (electronic money holders)?\n\n### Background\n\nArticle 12 of the E-Money Directive (2009/110/EC) (hereinafter referred to as the Directive) only bans the granting of interest and those other benefits which are related \"to the length of time during which the electronic money holder holds electronic money\", as stated in recital (13). On the one hand, it could be implied that the Directive prohibits the linking of interest to the length of holding funds, but does not prohibit other cases, for instance, interest on current accounts. On the other hand, from the provisions of the Directive, it is not really obvious if EMIs are allowed to apply negative interests rates as it refers to only \"the granting of interest and those other benefits\" which may relate to the benefits that only positive interest rates could provide.\n\nAs credit institutions apply negative interest rates to the client fund accounts of EMIs, EMIs try to find ways to cover their costs, they shift the costs to their clients by applying negative interest rates to the accounts of their clients. As the Directive does not directly prohibit the EMIs’ application of negative interest rates to their clients, it is currently a grey area from a legal standpoint.\n\nAdditionally, the answer to this question is significant not only from a legal standpoint, but from a monetary policy standpoint as EMIs should not remain an island where the effects of negative interest rates could be avoided. Therefore, the implications of answer to this question should be evaluated in a broader sense. It is therefore necessary to determine whether and in what cases (for instance, interest on current accounts) the EMIs are allowed to apply negative interest rates.\n\n***\n\n### Answer\n\nArticle 12 of Directive 2009/110/EC on the taking up, pursuit and prudential supervision of the business of electronic money institutions (EMD2) provides that “Member States shall prohibit the granting of interest or any other benefit related to the length of time during which an electronic money holder holds the electronic money”.\n\nThis prohibition is related to and a consequence of the status of electronic money as distinct from deposits and other repayable funds. This delineation is articulated in Article 6(2) EMD2, which states that “electronic money institutions shall not take deposits or other repayable funds from the public within the meaning of Article 5 of Directive 2006/48/EC”. Article 6(3) EMD2 further states that any funds received by electronic money institutions from the electronic money holder shall be exchanged for electronic money without delay and shall not constitute either a deposit or other repayable funds received from the public within the meaning of Article 5 of Directive 2006/48/EC.\n\nSince the funds received by electronic money institutions in exchange for electronic money must be converted into electronic money and do not constitute deposits or other repayable funds, there is no scope for the application of interest rates, regardless of whether they are positive or negative.\n\nDisclaimer: The answer clarifies provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.\n\n***\n\n**Source:** [EBA original document](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2022_6421)\n\n## Related Level 1 articles\n\n- [Article 12 — Prohibition of interest](../../../articles/12.md)\n"}