Regulation on the Minimum Requirements Regarding the Form and Content of Contracts to Be Signed Between Banks and Individual Customers and the Procedures and Principles Concerning the Transactions to Which These Contracts Apply by the Participation Banks Association of Türkiye

Scope - Article 1: The transactions, products, and services related to individual customers that member banks offer, as well as the minimum requirements for the form and content of contracts, shall comply with the principles and conditions set by the The Banks Association of Türkiye and the Participation Banks Association of Türkiye as per Article 76 of the Banking Law No. 5411 and Articles 80(b) and 80(i). These provisions cannot contradict the principles and conditions set by the Associations in this Regulation.

Basis - Article 2: This Regulation has been prepared based on Article 80(i) of the Banking Law No. 5411, dated 19/10/2005.

Definitions - Article 3: The following definitions apply in this Regulation:

a. Bank: Banks that are members of the Association,  

b. Association: The Banks Association of Türkiye and the Participation Banks Association of Türkiye,  

c. Standard Contract: The standardized contract formats prepared by the Association,  

d. Law: The Banking Law No. 5411 dated 19/10/2005,  

e. Board: The Banking Regulation and Supervision Board,  

f. Institution: The Banking Regulation and Supervision Authority.

For participation banks, the profit share instead of interest applies as per the provisions of this Regulation.

Activities Concerning Individual Customers - Article 4: The banking transactions and services that banks may offer to individual customers through branches, internet, phone banking, and other alternative distribution channels are as follows:

a) Acceptance of deposits and participation funds: Time and demand deposit accounts in Turkish Lira or foreign currencies, special current accounts, participation accounts, notification accounts, joint accounts, overdraft accounts, and other accounts as stipulated by the regulations,  

b) Credit transactions: Including overdraft accounts, personal loans, vehicle loans, housing loans, and other individual loans,  

c) Cash and non-cash payment and fund transfer transactions, correspondent banking, cheque accounts, and other payment and collection services,  

d) Custody services: Safe deposit boxes, gold, precious metals, and/or capital market instruments,  

e) Issuance of payment instruments such as credit cards, bank cards, and travel cheques,  

f) Foreign exchange and precious metals transactions,  

g) Trading and brokering of financial instruments based on economic and financial indicators, capital market instruments, commodities, precious metals, and foreign currency,  

h) Trading of previously issued capital market instruments for brokerage purposes,  

i) Providing guarantees, sureties, and other obligations for third parties,  

j) Financial leasing transactions,  

k) Insurance agency services,  

l) Other services, products, and transactions provided to individual customers in compliance with the law.

Form of Contracts - Article 5: The contracts must comply with mandatory legal provisions. Contracts that must be concluded in writing under the laws and relevant regulations must be written and executed as prescribed by those laws. Consumer credit contracts and credit card agreements must be written in at least 12-point font and in bold black letters, as specified in the Consumer Protection Law. A signed copy of all contracts with individual customers must be given to the customer, and a written statement of receipt must be kept by the bank.

Minimum Elements in Contracts - Article 6: The contracts with individual customers must include the minimum elements specified in this Regulation. The form and content of the contract may vary depending on the nature of the transaction, product, or service and the applicable legislation.

1. Acceptance of deposits and participation funds:

   a) The scope and conditions of deposit and participation fund acceptance,  

   b) Fees, commissions, and other financial obligations,  

   c) Customer's rights to withdraw deposits early,  

   d) Terms regarding foreign currency accounts.  

2. Payment and collection transactions:

   a) The scope and conditions of payment and collection transactions,  

   b) Fees, commissions, and other financial obligations,  

   c) Details of any collateral,  

   d) Terms for foreign currency accounts.  

3. Custody services:

   a) The scope and conditions of the custody service,  

   b) Fees, commissions, and other financial obligations,  

   c) Customer rights regarding collateral,  

   d) Terms of contract termination.  

4. **Loan transactions:**

   a) Loan amount, foreign currency exchange rate,  

   b) Customer’s payment obligations,  

   c) Collateral details,  

   d) Prepayment clauses,  

   e) Late payment penalties,  

   f) Terms of contract termination.

Notification and Information Regarding Products and Services - Article 7: For every product or service within an individual contract that imposes financial obligations, the customer must be notified and provide consent via electronic channels, email, phone, or other methods. The notification must include detailed information about the product, including the name, terms, fees, interest rates, and applicable duration. If the information is not provided or the customer's consent cannot be presented to the relevant authorities, the request will be considered unrecorded.

Notification of Changes in Fees, Commissions, and Interest Rates - Article 8: Banks must notify customers of changes in fees and interest rates at least 30 days before they take effect. Customers have the right to cancel the service or product within 15 days after the new period begins. If the customer exercises this right, no additional fees or charges will be imposed. Any changes in fees exceeding 20% in a year require explicit customer approval.

Sanctions - Article 9: Banks must comply with the minimum requirements outlined in this Regulation. If they fail to comply, complaints will be evaluated and acted upon according to the procedures defined by the Association’s board. A fine may be imposed for violations of the provisions specified in this Regulation.

Repealed Provisions - Article 10: The previous Regulation on individual contracts is repealed as of 1 December 2006.

Effective Date - Article 11: This Regulation applies to contracts signed or renewed after 1 September 2013. Changes to terms related to fees, interest, and other conditions must also be in compliance with this Regulation, even for contracts signed before this date.

Enforcement - Article 12: The provisions of this Regulation are enforced by the The Banks Association of Türkiye and the Participation Banks Association of Türkiye.