Circular 6/2007 — Rules for Credit Institutions Regarding Basic Payroll and General Public Accounts

Monday, July 16, 2007 OFFICIAL GAZETTE (First Section) 1 RULES to which credit institutions must adhere regarding basic payroll accounts and for the general public, referred to in Article 48 bis 2 of the Credit Institutions Law.

A logo appears at the margin, stating: Bank of Mexico.

RULES TO WHICH CREDIT INSTITUTIONS MUST ADHERE REGARDING BASIC PAYROLL ACCOUNTS AND FOR THE GENERAL PUBLIC, REFERRED TO IN ARTICLE 48 BIS 2 OF THE CREDIT INSTITUTIONS LAW.

TO CREDIT INSTITUTIONS:

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24 and 26 of the Bank of Mexico Law; 48 and 48 Bis 2 of the Credit Institutions Law; 4 and 22 of the Law for Transparency and Ordering of Financial Services, as well as Articles 8o. third and fourth paragraphs, 10, 14 in relation to 25 fraction II which provides for the attribution of the General Directorate of Financial System Analysis to participate in the issuance of provisions; 17 fraction I, which establishes the attribution of the Central Banking Provisions Directorate to issue provisions, and 20 fraction IV, which contemplates the attribution of the Operational and Payments Systems Directorate to participate in the issuance of provisions, all of the Internal Regulations of the Bank of Mexico published in the Official Gazette of the Federation on September 30, 1994, whose last modification was published in the aforementioned Official Gazette on April 26, 2007; with the object of promoting the sound development of the financial system and protecting the interests of the public, and considering that:

a) On June 15, 2007, the "Decree by which the Law for Transparency and Ordering of Financial Services published in the Official Gazette of the Federation on January 26, 2004 is repealed, the Law for Transparency and Ordering of Financial Services is issued, and various provisions of the Credit Institutions Law and the Law for Protection and Defense of the User of Financial Services and the Law of the National Banking and Securities Commission are reformed, added to, and repealed" was published in the Official Gazette of the Federation;

b) These reforms had, among other purposes, to oblige credit institutions that receive demand deposits from individuals to offer the basic products indicated therein under the terms and conditions determined by the Bank of Mexico through general provisions, considering for this purpose that accounts whose monthly credit does not exceed the amount equivalent to one hundred sixty-five current minimum daily wages in the Federal District must be exempt from any fees for opening, withdrawals, and balance inquiries at the respective institutions;

c) The existence of basic banking services with homogeneous characteristics facilitates their comparison and allows the consumer to choose the institution that best suits them, which fosters competition among institutions and promotes access to the banking system for the population, and

d) International experience has demonstrated that an appropriate measure to extend financial services to the population is to regulate certain basic banking services.

It has resolved to issue the following:

RULES TO WHICH CREDIT INSTITUTIONS MUST ADHERE REGARDING BASIC PAYROLL ACCOUNTS AND FOR THE GENERAL PUBLIC, REFERRED TO IN ARTICLE 48 BIS 2 OF THE CREDIT INSTITUTIONS LAW.

1. DEFINITIONS

For brevity, the following terms, in singular or plural, shall be understood as:

Commission: any charge, regardless of its denomination or modality, that a Credit Institution charges an account holder.

Basic Payroll Account: the demand deposit for payroll referred to in Article 48 Bis 2 of the Credit Institutions Law, which is transferred electronically.

Basic Account for the General Public:
the demand deposit referred to in Article 48 Bis 2 of the Credit Institutions Law.

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Credit Institution: the legal entity authorized to act as a multiple banking institution or a development banking institution, as provided in the Credit Institutions Law.

2. BASIC PAYROLL ACCOUNT

2.1 Services to be Offered

2.11. The Basic Payroll Account must include the minimum services listed below:

i) Opening and maintenance of the account; ii) Issuance of a debit card to the account holder and its replacement in case of wear or renewal; iii) Crediting of funds to the account by any means; iv) Cash withdrawals at the ATMs of the Credit Institution holding the account; v) Payment of goods and services at affiliated businesses through the debit card; vi) Balance inquiries at the ATMs of the Credit Institution holding the account; vii) Direct debit for service payments, and viii) Closing of the account.

2.12. Credit Institutions may offer additional services associated with the Basic Payroll Account.

2.2 Account Holders

Individuals for whom their employer has entered into an agreement with the depositary Credit Institution under which they are able to contract the Basic Payroll Account, in order to have their salary and other labor-related benefits deposited therein.

2.3 Amounts

The Basic Payroll Account does not require a minimum opening amount nor a minimum average monthly balance.

2.4 Withdrawals

2.41. Account holders may access the funds deposited in the Basic Payroll Account through: i) cash withdrawals at the ATMs of the Credit Institution holding the account, with no limitation on the number of withdrawals, and ii) payment of goods and services through the use of debit cards at affiliated businesses.

2.42. In the event that: i) the Credit Institution does not have ATMs; ii) for any reason the ATMs at the branch visited by the account holder are not functioning, or iii) the account holder needs to access an amount greater than that authorized at said ATMs, the respective Credit Institution is obligated to allow cash withdrawals at the counters of its branches.

2.5 Balance Inquiries

Account holders may inquire about the balance of their Basic Payroll Account at the ATMs of the Credit Institution holding the account. In the event that: i) the Credit Institution does not have ATMs, or ii) for any reason the ATMs at the branch visited by the account holder are not functioning, the respective Credit Institution is obligated to offer the service at its branches.

2.6 Commissions

2.61. The services associated with the Basic Payroll Account referred to in items 2.11., 2.42. and 2.5 shall not incur any Commission.

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2.62. In the event that, upon termination of the employment relationship of the account holder that gave rise to the opening of the Basic Payroll Account, the respective Credit Institution intends to charge Commissions for the services provided in items 2.11., 2.42. and 2.5, it must inform the account holder in writing to their address, which may be included in the respective account statement, at least 30 days in advance of the date on which the respective Commissions are intended to take effect.

2.63. Credit Institutions may freely establish the Commissions applicable to each of the additional services associated with the Basic Payroll Account referred to in item 2.12.

When such services are subject to a Commission, their contracting shall be voluntary and must be effected through a prior written agreement between the parties, in which the terms, conditions, and other characteristics of the said services are established.

In any case, the amount of such Commissions shall not exceed the lowest amount that the respective Credit Institution charges for the same services when offered in other products.

3. BASIC ACCOUNT FOR THE GENERAL PUBLIC

3.1 Services to be Offered

3.11. The Basic Account for the General Public must include the minimum services listed below:

i) Opening and maintenance of the account; ii) Issuance of a debit card to the account holder and its replacement in case of wear or renewal; iii) Crediting of funds to the account by any means; iv) Cash withdrawals at the ATMs of the Credit Institution holding the account; v) Payment of goods and services at affiliated businesses through the debit card; vi) Balance inquiries at the ATMs of the Credit Institution holding the account; vii) Direct debit for service payments, and viii) Closing of the account.

3.12. Credit Institutions may offer additional services associated with the Basic Account for the General Public.

3.2 Account Holders

Individuals who meet the applicable requirements.

3.3 Amounts

3.31. The Basic Account for the General Public does not require a minimum opening amount.

3.32. Credit Institutions may determine the minimum average monthly balance that must be maintained in the Basic Account for the General Public. In the event that the said minimum average monthly balance is not maintained for three consecutive months, the Credit Institution may cancel the respective account.

When the minimum average monthly balance of the Basic Account for the General Public has not been maintained in any month, the Credit Institution must notify the account holder in writing to their address, which may be included in the respective account statement, that if such a situation occurs again in the two months immediately following the month in question, it may proceed to close the account.

When the Credit Institution closes the account, it must deliver to the account holder the funds maintained in it, either by delivering cash at the counters of its branches or by making a check payable to them available, as established in the respective contract.

3.4 Withdrawals

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3.41. Account holders may access the funds deposited in the Basic Account for the General Public through: i) cash withdrawals at the ATMs of the Credit Institution holding the account, with no limitation on the number of withdrawals, and ii) payment of goods and services through the use of debit cards at affiliated businesses.

3.42. In the event that: i) the Credit Institution does not have ATMs; ii) for any reason the ATMs at the branch visited by the account holder are not functioning, or iii) the account holder needs to access an amount greater than that authorized at said ATMs; the respective Credit Institution is obligated to allow cash withdrawals at the counters of its branches.

3.5 Balance Inquiries

Account holders may inquire about the balance of their Basic Account for the General Public at the ATMs of the Credit Institution holding the account. In the event that: i) the Credit Institution does not have ATMs, or ii) for any reason the ATMs at the branch visited by the account holder are not functioning, the respective Credit Institution is obligated to offer the service at its branches.

3.6 Commissions

3.61. Credit Institutions shall not charge any Commission for the minimum services provided in item 3.11., as well as those provided in item 3.42. and 3.5, except when the sum of the monthly credits made to the Basic Account for the General Public exceeds, on more than three consecutive occasions, the amount in national currency equivalent to one hundred sixty-five current minimum daily wages in the Federal District.

In this latter case, Credit Institutions may charge a Commission the month following the occurrence of the aforementioned situation, under the terms established in the contract.

3.62. In the case referred to in the last paragraph of item 3.32., the check issued, if any, in favor of the account holder shall not generate any Commission.

3.63. Credit Institutions may freely establish the Commissions applicable to each of the additional services associated with the Basic Account for the General Public referred to in item 3.12.

When such services are subject to a Commission, their contracting shall be voluntary and must be effected through a prior written agreement between the parties, in which the terms, conditions, and other characteristics of the said services are established.

In any case, the amount of such Commissions shall not exceed the lowest amount that the respective Credit Institution charges for the same services when offered in other products.

4. COMMON PROVISIONS

Credit Institutions may freely determine the characteristics of the Basic Payroll Account and the Basic Account for the General Public that are not provided for in these Rules, adjusting to the applicable provisions. This is understood on the premise that the characteristics established by Credit Institutions shall not limit, modify, or in any way render nugatory what is provided in these Rules.

4.1 Information

4.11. Credit Institutions must inform, through their electronic page on the worldwide network (Internet), the minimum services of the Basic Payroll Account and the Basic Account for the General Public, as well as any additional services they offer and that are associated with said accounts. Additionally, they must inform the minimum average monthly balance applicable to the Basic Account for the General Public.

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4.12. Credit Institutions that, in accordance with what is provided in these Rules, intend to cancel any of the accounts mentioned in items 2 and 3, must inform the account holder of such situation in writing to their address, which may be included in the respective account statement, at least 30 natural days in advance of the date on which such event will occur, as well as the manner in which they may withdraw the funds, if any, maintained therein.

4.2. Service Offer

Credit Institutions must offer the accounts referred to in items 2 and 3, at least in the branches and during the hours in which they offer demand deposits for the general public.

Each Credit Institution may limit the possibility of opening more than one account of those mentioned in the previous paragraph per person.

4.3 Prohibition

Institutions are prohibited from denying the opening of the Basic Payroll Account or the Basic Account for the General Public to individuals who meet the requirements provided in the applicable provisions and in their internal policies of general application to the rest of their passive operations.

TRANSITORY PROVISIONS

FIRST.- These Rules shall enter into force the day following their publication in the Official Gazette of the Federation.

SECOND.- In accordance with what is provided in the Third Transitory Article of the "Decree by which the Law for Transparency and Ordering of Financial Services published in the Official Gazette of the Federation on January 26, 2004 is repealed, the Law for Transparency and Ordering of Financial Services is issued, and various provisions of the Credit Institutions Law and the Law for Protection and Defense of the User of Financial Services and the Law of the National Banking and Securities Commission are reformed, added to, and repealed", Credit Institutions shall have a period of up to one hundred eighty natural days from the entry into force of said Decree to comply with the provisions of these Rules.

This is without prejudice to the fact that Credit Institutions may offer the Basic Payroll Account and Basic Account for the General Public in terms of these Rules, from the day of their entry into force.

Respectfully,

Mexico, D.F., July 13, 2007.- BANK OF MEXICO: The General Director of Financial System Analysis, José Gerardo Quijano León.- Signature.- The Director of Central Banking Provisions, Fernando Luis Corvera Caraza.- Signature.- The Director of Operational and Payments Systems, Ricardo Medina Alvarez.- Signature.