Regulatory Alerts2020-05-22 | Circular 4020Circular No. 4020 — Waiver of prior authorization from the Central Bank of Brazil for changes to payment arrangement regulations to enable transactions related to digital social savings accounts
The Central Bank of Brazil issued Circular No. 4020 to waive prior authorization requirements for payment arrangement regulations strictly adapted to initiate transactions using digital social savings accounts established by Law No. 13,982/2020. The regulation imposes temporary caps on interchange fees, discount rates, and other charges for these transactions and mandates that issuers and acquirers report transaction volumes and fee values to the Central Bank within specified deadlines. These measures remain valid for three months, subject to extension by the Executive Branch during the international public health emergency related to Covid-19.
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