Circular 14/2011 — Modifies Circular 2019/95

CIRCULAR 14/2011
Mexico, D.F., June 17, 2011.
TO THE MULTIPLE BANKING INSTITUTIONS:
SUBJECT: MODIFICATIONS TO CIRCULAR 2019/95

The Bank of Mexico, with the objective of continuing to promote the sound development of the financial system, considers it appropriate to establish provisions that:
I. Encourage a larger segment of the population to have access to banking services;
II. Promote the use of new ways for clients to access resources deposited in these institutions, and
III. Facilitate depositors in using their resources through efficient and expeditious disposal means.

For the above, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24, 26 and 31 of the Bank of Mexico Law; 46, fraction XXVI bis of the Credit Institutions Law; 3, fraction XII and 22 of the Law for Transparency and Ordering of Financial Services, as well as 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, as well as 14 Bis 1 first paragraph in relation to 25 Bis 1 fraction IV, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue 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 numerals M.11.11.11., M.11.11.12., M.11.11.13., M.11.11.14., M.11.11.15. and M.11.11.16., as well as repeal the numerals M.11.11.15.1, M.11.11.15.2, M.11.11.17., M.11.11.2, M.11.9, M.38., M.38.1, M.38.2 and M.38.3, all of them from Circular 2019/95, to remain as follows:

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M.1 PASSIVE OPERATIONS
M.11. CHARACTERISTICS OF OPERATIONS IN NATIONAL CURRENCY M.11.1 BANK MONEY DEPOSITS M.11.11.1 Demand Deposits

“M.11.11.11. General Characteristics

The accounts in which these deposits are carried out will be classified into four operational levels, depending on the requirements for opening the account in question, in accordance with what is provided in the “General provisions referred to in Article 115 of the Credit Institutions Law” issued by the Ministry of Finance and Public Credit.

Such accounts must comply with the following:
I. In accounts classified as level 1, the sum of credits during a calendar month cannot exceed the equivalent in national currency to 750 UDIS. At no time can the balance of these accounts exceed the equivalent in national currency to 1,000 UDIS.
II. In accounts classified as level 2, the sum of credits during a calendar month cannot exceed the equivalent in national currency to 3,000 UDIS.
III. In accounts classified as level 3, the sum of credits during a calendar month cannot exceed the equivalent in national currency to 10,000 UDIS.
IV. In accounts classified as level 4, the credit of resources will have no limit, unless, in their case, the institutions agree on one with their clients.

In level 2 accounts, institutions may receive additional monthly deposits beyond the established limit, up to the equivalent in national currency to 6,000 UDIS, provided that the origin of the resources comes exclusively from subsidies related to government support programs for certain sectors of the population.

To perform the calculation in UDIS of the limits indicated in this numeral, institutions must take the value of this unit of account from the last day of the calendar month prior to the month in question.

M.11.11.12. Account Holders

Institutions may open level 1 and 2 accounts only to natural persons. Level 3 and 4 accounts may be opened to natural and legal persons.

M.11.11.13. Yields

The interest rates that, if any, institutions use to calculate the interest corresponding to the resources maintained in the accounts will be applied to the average of the daily balances of the period in which they have been in effect.

Institutions may determine the payment periodicity of the respective interests and reserve the right to adjust the agreed rate daily.

M.11.11.14. Credits

Institutions must allow in all types of accounts that credits be made in cash, through electronic fund transfers and by checks.

M.11.11.15. Means of disposal and payment

Institutions must allow their clients access to the resources of the accounts, in accordance with the following:
a) Regarding level 1 accounts, exclusively through debit cards.
Institutions must not allow the resources of these accounts and the corresponding debit cards to be disposed of via mobile phones or any other electronic device. b) In relation to level 2, 3 and 4 accounts, through the means determined by the institutions, such as electronic fund transfers, including the service known as direct debit, and debit cards.

c) Only in level 4 accounts may withdrawals be authorized by issuing checks.

M.11.11.15.1 Repealed.
M.11.11.15.2 Repealed.

M.11.11.16. Characteristics of means of disposal and payment

I. Electronic Fund Transfers

Institutions may offer electronic fund transfers through their website on the worldwide web (Internet), mobile phones or any other means they determine.

Institutions are obligated to:
a) Assign a Standardized Bank Key (CLABE) to each level 2, 3 and 4 account, as well as allow the receipt of electronic fund transfers using said CLABE.

The foregoing, without prejudice to additionally allowing the receipt of such transfers using the 16 identification digits of the debit cards, or the digits corresponding to the line of a mobile phone.

To receive electronic fund transfers in level 1 accounts, the CLABE that, if any, institutions assign to them may be used, or the 16 identification digits of the debit cards.

b) Process within the same timeframes the instructions they receive to make credits to the accounts they maintain for their clients and to transfer resources from these, regardless of whether the accounts from which the resources originate or to which they intend to be transferred are maintained by the institution itself or another.

c) Allow clients to incorporate information to identify the purpose of the payment when sending electronic fund transfers. This information must be sent to the receiving financial entity and made available to the beneficiaries of the transfer.

Institutions may not charge clients commissions for the incorporation and sending of the information referred to in the previous paragraph. The foregoing, without prejudice to the commissions they charge for the sending of electronic fund transfers.

d) Maintain on the Internet a simple guide on the procedures for their clients to use electronic fund transfer and direct debit services, both within the same institution and interbank, as well as deliver a printed copy free of charge to any person who requests it in their branches.

On the other hand, institutions may not:
e) Charge each other commissions for the sending, receipt, return or execution of electronic fund transfers, except for direct debits.

f) Differentiate the amount of commissions they charge their clients for sending electronic fund transfers, including direct debits, based on the institution that maintains the beneficiary's account.

II. Debit Cards

This means of disposal and payment may be presented in the forms determined by the institutions, such as cards and stickers, provided that they clearly show the denomination of the issuing institutions or any other expression, symbolism, emblem or logo that identifies them.

Additionally, debit cards associated with level 2 to 4 accounts may be presented in microcircuits contained in mobile phones, provided that, when using the respective application, the denomination of the issuing institutions or any other expression, symbolism, emblem or logo that identifies them is clearly shown.

Debit cards may be used to: a) withdraw cash at the issuing institution's branches, ATMs, through banking commissionaires, as well as at affiliated businesses, and b) pay for goods, services, credits, taxes, as well as to make other payments that institutions allow their clients to make.

In the contracts they sign with affiliated businesses, institutions have the obligation to allow establishments to opt to accept as a means of payment for the goods and services they offer: a) only debit cards; b) only credit cards, or c) debit cards and credit cards.

Institutions must incorporate the expiration date of the cards on the front in a visible manner. In the case of other forms of debit cards that have a defined validity, institutions must inform their clients of it through some means that leaves a record of it.

III. Debit Cards Associated with Level 1 Accounts

In addition to what is stated in the previous fraction, regarding these cards, institutions must observe the following:
a) Offer

Institutions may offer them: i) at their branches; ii) through their banking commissionaires; iii) through electronic means made available to their clients, and iv) through any other person that the institutions themselves authorize.

b) Information to the Public

The terms and conditions applicable to these debit cards must be made available to the public on the issuing institution's Internet page, as well as be delivered in writing to the persons who acquire them and contain, at least, the following:

i) The ways in which they can be used and credited. ii) The concepts, amounts, periodicity and validity of the commissions that, if any, are charged, as well as the mechanism by which modifications to such commissions will be made known. iii) The expiration date. iv) The yield that, if any, the balance generates. v) Security measures for their use. vi) Procedures to report any malfunction of the debit card and, if any, theft or loss; as well as to request clarifications and to obtain the return of resources due to the cancellation or termination of their validity.

vii) Mechanisms to consult the balance and, if any, the movements. viii) Mechanisms and information that must be provided or used to receive credits through electronic fund transfers.

Additionally, the client must be delivered a receipt of the acquisition of the corresponding debit card, which may serve as proof of account opening.

c) Use

The debit cards referred to in this fraction may only be used within national territory, so they cannot be used to withdraw cash or make payments abroad, nor to make electronic fund transfers.

d) Return of Resources

Issuing institutions are obligated to return to their clients the balance of the resources deposited in level 1 accounts when they cancel them; due to malfunction of the debit card, or once its validity has ended.

The foregoing, provided that ownership of the respective resources is proven through the presentation or delivery of the debit card in question or, in its defect, the information or documentation indicated in any of the following sub-items:

i) The proof of account opening or acquisition of the debit card; ii) The debit card number and the personal identification number associated with it, if both exist, or iii) Any other form established in the terms and conditions issued by the institutions for the operation of said debit cards.

IV. Checks

The skeletons for the issuance of checks that institutions deliver to their account holders must comply with the specifications for the automated process established in the following standards: i) "MCH1.1 Specifications of the format and content of the magnetizable character band"; ii) "MCH2.1 Specifications of printing of magnetizable characters"; iii) "MCH3.2 Specifications of Security Measures to be used for the elaboration of the Check", and iv) "MCH4.2 Design of the front and back of the check", elaborated by said institutions through the Mexican Banks Association A.C.

Institutions may authorize their account holders to issue checks on documents other than the special skeletons they provide, only when such documents comply with the specifications referred to in this numeral, which must be proven by the institution granting said authorization.

“M.11.11.17. Repealed.”
“M.11.11.2 Repealed.”
“M.11.9 Repealed.”
“M.38. Repealed.”
“M.38.1 Repealed.”
“M.38.2 Repealed.”
“M.38.3 Repealed.”

TRANSITORY CLAUSES

FIRST. This Circular will enter into force on August 15, 2011.

SECOND. Institutions may open and maintain until February 15, 2013 accounts in which the sum of credits during a calendar month does not exceed the equivalent in national currency to 1,500 UDIS, provided they comply with the opening requirements provided for these accounts in the “General provisions referred to in Article 115 of the Credit Institutions Law” issued by the Ministry of Finance and Public Credit. These accounts will be for exclusive use within national territory in terms of what is provided in sub-item c) fraction III of numeral M.11.11.16.

Except for what is stated in the previous paragraph, the provisions of this Circular relative to level 2 accounts will be applicable to these accounts.

THIRD. Cards that have been activated before the date indicated in the First Transitory Clause above, issued based on numeral M.11.9 which is repealed in accordance with this Circular, may be used until the expiration of their validity in terms of what is provided in said numeral.