Regulatory Alerts2008-07-14 | Circular 31/2008Added
Circular 31/2008 — Modifies Circular 2019/95
The Bank of Mexico modifies sections M.11.11.15.2, M.11.91.1, and M.25 of Circular 2019/95, and repeals Annex 4, effective July 28, 2008. These changes align debit card, prepaid card, and credit card issuance rules with the newly effective "Rules for the Issuance and Operation of Credit Cards" published on July 11, 2008. The modifications require institutions to adhere to these new credit card rules for cash withdrawals and purchases at affiliated businesses, replacing previous regulations that were rendered ineffective by the new rules.
2008, Year of Physical Education and Sport CIRCULAR 31/2008 Mexico, D.F. on July 14, 2008. TO THE MULTIPLE BANKING INSTITUTIONS: SUBJECT: MODIFICATIONS TO CIRCULAR 2019/95
The Bank of Mexico, based on the provisions of Article 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; Articles 24 and 26 of the Bank of Mexico Law; Articles 48 and 72 Bis of the Credit Institutions Law; Article 8, third and sixth paragraphs; Article 10, first paragraph; Article 14, first paragraph in relation to Article 25, fraction II; and Article 17, fraction I, which grant the Bank of Mexico the authority to issue provisions through the General Directorate of Financial System Analysis and the Central Banking Provisions Directorate, respectively, all of the Internal Regulations of the Bank of Mexico, as well as the Single Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, fractions III and IV, with the objective of promoting the sound development of the financial system and protecting the interests of the public, considering that: a) On July 28, the "Rules for the Issuance and Operation of Credit Cards," made known through Circular 29/2008 of this Central Institute and published in the Official Journal of the Federation on July 11, 2008, will enter into force; b) From the entry into force of the aforementioned Rules, the "Rules to which multiple banking institutions and limited object financial societies must adhere in the issuance and operation of credit cards," published in the Official Journal of the Federation on August 4, 2004, are rendered ineffective, and c) As a result of the foregoing, it is necessary to make various adjustments to our Circular 2019/95.
It has resolved to modify, effective July 28, 2008, sections M.11.11.15.2, second paragraph; M.11.91.1, second paragraph; and M.25., as well as to repeal Annex 4, all of Circular 2019/95, to remain as follows:
M.1 PASSIVE OPERATIONS M.11. CHARACTERISTICS OF DOMESTIC CURRENCY OPERATIONS M.11.1 MONEY BANK DEPOSITS M.11.11.1 Demand Deposits M.11.11.15 Withdrawals
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"M.11.11.15.2 Debit Cards ... The withdrawal of cash at affiliated businesses, as well as the acquisition of goods and services, shall be subject, insofar as applicable, to the provisions of the "Rules for the Issuance and Operation of Credit Cards," issued by this Central Bank and published in the Official Journal of the Federation on July 11, 2008. ... ..."
M.11.9 BANK PREPAID CARDS M.11.91. General Characteristics
"M.11.91.1 Use ... The withdrawal of cash at affiliated businesses, as well as the acquisition of goods and services, shall be subject, insofar as applicable, to the provisions of the "Rules for the Issuance and Operation of Credit Cards," issued by this Central Bank and published in the Official Journal of the Federation on July 11, 2008."
"M.25. ISSUANCE OF CREDIT CARDS When institutions issue credit cards, they must comply with what is established in the "Rules for the Issuance and Operation of Credit Cards," issued by this Central Bank and published in the Official Journal of the Federation on July 11, 2008."
"ANNEX 4 Repealed."