Circular 19/2011 — Modifies Circular 14/2011

CIRCULAR 19/2011
Mexico, D.F., August 10, 2011.
TO MULTIPLE BANKING INSTITUTIONS:
SUBJECT: MODIFICATIONS TO CIRCULAR 14/2011

The Bank of Mexico, in order to continue promoting the sound development of the financial system and foster the proper functioning of payment systems, considers it convenient that institutions may exclude from the calculation of the maximum allowed credits in accounts of levels 1, 2, and 3 provided for in Circular 14/2011, the amounts related to interest, refunds for electronic fund transfers, and any other bonus that such institutions provide for the use or management of the account, if applicable, made during the period in question.

Likewise, this Central Bank considers it convenient to allow these institutions to issue, activate, and place national currency prepaid bank cards for an additional period, in order to facilitate their transition of banking products and to allow them to continue meeting the current needs of their clientele.

It is important to clarify that institutions are not obligated to offer and open accounts of the referred levels from the entry into force of the aforementioned Circular 14/2011; however, when institutions open such accounts, they must adhere to what is stated in said Circular.

Therefore, based on Article 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; Articles 24, 26, and 31 of the Bank of Mexico Law; Article 46, fraction XXVI bis of the Credit Institutions Law; Articles 3, fraction XII, and 22 of the Law for Transparency and Order of Financial Services; as well as Article 4, first paragraph, Articles 8, fourth and seventh paragraphs, 10, first paragraph, 12 Bis in relation to Article 20, fraction XI, 14 Bis in relation to Article 17, fraction I, and Article 14 Bis 1, first paragraph in relation to Article 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 Article 2 of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, fractions III, IX, and XI, it has resolved, effective August 11, 2011, to add a fifth paragraph to section M.11.11.11, as well as modify the First and Third Transitory provisions of the aforementioned Circular 14/2011, to read as follows:

M.1 PASSIVE OPERATIONS

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

“M.11.11.11. General Characteristics
...
To determine the maximum amount of credits in accounts of levels 1, 2, and 3 during a calendar month, institutions may exclude amounts related to interest, refunds for electronic fund transfers, and any other bonus that such institutions provide for the use or management of the account, if applicable, made during the period in question.”

TRANSITORY PROVISIONS

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

The foregoing, except with respect to section M.11.9, which shall remain in effect until May 31, 2012.
From the cited date, institutions shall not be able to issue national currency prepaid bank cards.”

“THIRD. National currency prepaid bank cards that have been issued based on section M.11.9 before August 16, 2011, may be activated and placed until May 31, 2012, and therefore may be used until the expiration of their validity as provided in said section.

National currency prepaid bank cards that institutions issue between August 16, 2011, and May 31, 2012, must be activated by the latter date for use and may not have a validity period extending beyond May 31, 2013.”