Circular 1/2012 — Modifies Circular 22/2010

Tuesday, January 31, 2012 OFFICIAL GAZETTE (Third Section) BANK OF MEXICO CIRCULAR 1/2012 addressed to credit institutions, limited-purpose financial societies and multiple-purpose financial societies regulated, regarding the modifications to Circular 22/2010.
At the margin a logo, which says: Bank of Mexico.
CIRCULAR 1/2012
TO CREDIT INSTITUTIONS,
LIMITED-PURPOSE FINANCIAL SOCIETIES AND MULTIPLE-PURPOSE FINANCIAL SOCIETIES REGULATED:
SUBJECT: MODIFICATIONS TO CIRCULAR 22/2010
The Bank of Mexico, in order to promote the sound development of the financial system and to protect the interests of the public, as well as to foster transparency and competition, considers it convenient that any worker or pensioner can directly open a commission-free basic payroll account at the credit institution of their preference, in order to receive their salary, pensions and other labor-related benefits in it, even through the exercise of the right of transfer conferred by article 18 of the Law for Transparency and Ordering of Financial Services. For the above, 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, 4 Bis and 22 of the Law for Transparency and Ordering of Financial Services; 4th first paragraph, 8th fourth and seventh paragraphs, 10 first paragraph, 12 Bis in relation to 20 fraction XI, 14 Bis in relation to 17 fraction I, and 14 Bis 1 first paragraph in relation to 25 Bis 1 fraction IV and 25 Bis 2 fraction II, of the Internal Regulations of the Bank of Mexico, which provide for its attribution to participate in the issuance of provisions through the General Directorate of Strategy, Risks and Payment Systems, the General Legal Directorate and the General Directorate of Financial System Affairs, respectively; as well as Second of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, fractions III, IX and XI, has resolved to modify the definition of "Basic Payroll Account" of numeral 1; numerals 2.12., and 2.14.; eliminate the current third paragraph of numeral 2.24., as well as add numeral 2.36., all of Circular 22/2010, to remain in the following terms:
GENERAL PROVISIONS ESTABLISHING PROHIBITIONS AND LIMITS ON THE CHARGING OF FEES "1. DEFINITIONS For brevity, it will be understood, in singular or plural, by:
. . .
Basic Payroll Account:
. . .” the demand or savings bank deposit related to payroll referred to in the first paragraph of article 48 Bis 2 of the Credit Institutions Law.
2. BASIC ACCOUNTS EXEMPT FROM FEES
2.1 BASIC PAYROLL ACCOUNT
"2.12. The Basic Payroll Account may be opened by any natural person who holds a job, position or commission of any nature, either directly or at the request of their employer.

(Third Section) OFFICIAL GAZETTE Tuesday, January 31, 2012 The Basic Payroll Account may also be opened by any natural person for the receipt of payment of their pension, either directly or at the request of the person who is obliged to pay said pension."
"2.14. In the event that for any circumstance a Basic Payroll Account does not receive deposits for six consecutive months, the credit institution that holds it may transform it into a Basic Account for the General Public, prior to notification to the respective Client with at least thirty natural days in advance.
In the event that the credit institution holding the Basic Payroll Account decides to transform it, it must carry out the notification mentioned in the previous paragraph through: i) written communication addressed to the Client's address, which may be included in the respective account statement, or ii) its automated teller machines through a clear and noticeable message that appears on the screen when the Client uses it."
2.2 BASIC ACCOUNT FOR THE GENERAL PUBLIC
"2.24. Credit institutions may determine the minimum monthly average balance that must be maintained in the Basic Account for the General Public. In the event that the referred balance is not maintained for three consecutive months, the credit institution may close the respective account.
When the minimum monthly average balance of the Basic Account for the General Public has not been maintained in any month, the credit institution must notify the Client that if such a situation occurs again during the 60 natural days immediately following the month in question, it may close said account. Such notification must be carried out through: i) written communication addressed to their address, which may be included in the respective account statement, or ii) its automated teller machines through a clear and noticeable message that appears on the screen when the Client uses the automated teller machine. When the credit institution closes the account, it must return to the Client the resources deposited in it, either by delivering cash at the windows of its branches or by making a check in their favor available to them, as established in the respective contract."
2.3 COMMON PROVISIONS
"2.36. In the event that the notifications provided for in numerals 2.14. and 2.24. are made through automated teller machines, the credit institution must be able to demonstrably show that it made the respective information known to the Client. In these cases, the timeframes referred to in said numerals will be calculated from when the Client has used the machine and the credit institution has shown the notification to them." TRANSITORY UNIQUE. This Circular will enter into force on April 30, 2012. Mexico, D.F., January 27, 2012.- BANK OF MEXICO: The General Director of Strategy, Risks and Payment Systems, David Aaron Margolín Schabes.- Rubric.- The General Legal Director, Héctor Reynaldo Tinoco Jaramillo.- Rubric.- The General Director of Financial System Affairs, José Gerardo Quijano León.- Rubric. For any queries regarding the content of this Circular, please go to the Management of Authorizations, Consultations and Legal Control Control, located at Avenida 5 de Mayo number 2, Colonia Centro, Mexico, Federal District, C.P. 06059, or to the phones 5237.2308, 5237.2000 ext. 3200 or 5237.2317.