Circular Letter No. 3.003

CIRCULAR LETTER No. 003003 ------------------------ Defines operational procedures of the Currency in Circulation System - CIR, within the scope of the Brazilian Payment System. In accordance with the provisions of art. 7 of Circular 3.109, of 10 April 2002, we clarify that currency in circulation operations carried out through the Currency in Circulation System - CIR must observe the procedures defined in this circular letter. OPERATIONS WITH THE CENTRAL BANK OF BRAZIL 2. Commercial banks, multiple banks with a commercial portfolio and savings banks may register requests for withdrawal or deposit of cash in advance or on the same day, and in the latter case, service is conditioned upon compliance with routines defined by the Currency in Circulation Department - Mecir. 3. The inclusion of the request referred to in item 2 will only be accepted when there is a record of a forecast of withdrawals and deposits covering, at a minimum, the period delimited by the business day following the date of effectuation of the requested operation and the last business day of the subsequent week. 4. Cash exchange operations are exempt from prior request registration, with service being conditioned upon the availability of the Central Bank of Brazil. OPERATIONS WITH THE CUSTODIAN 5. Commercial banks, multiple banks with a commercial portfolio and savings banks must register requests for cash withdrawal for service by the Custodian, observing that: I - those made with a minimum advance notice of forty-eight hours have service guaranteed by the Custodian; and II - those registered with a period of less than forty-eight hours depend on confirmation by the Custodian. 6. Cash deposit requests are not subject to the establishment of a period for confirmation. 7. Cash exchange operations are exempt from prior request registration, with service being conditioned upon the availability of the Custodian. 8. The Custodian may cancel already confirmed withdrawal requests due to extraordinary situations that prevent the operations. 9. Commercial banks, multiple banks with a commercial portfolio and savings banks may cancel requests not effectuated, observing the provisions of item 11. 10. The Custodian may establish internal routines necessary for the execution of services for serving the banking network, pertaining to the custody of cash of the Central Bank of Brazil. 11. The "ad valorem" fee referred to in paragraph 1 of art. 5 of Circular 3.109, of 10 April 2002, shall not be due when: I - the Custodian cancels the already confirmed withdrawal request due to extraordinary situations that prevent the operation; II - the financial institution cancels the withdrawal request not yet confirmed by the Custodian; and III - the financial institution cancels the cash deposit request. ON MOVEMENT IN THE BANKING RESERVES ACCOUNT 12. On the date scheduled for the effectuation of cash withdrawal, at the opening of the Reserve Transfer System - STR, a transfer shall be made to a
transitional account held by the requesting financial institution, by debiting its Banking Reserves account at the Central Bank of Brazil: I - of the amount corresponding to the withdrawal request; and II - of the amount of the "ad valorem" fee, when it concerns movement with the Custodian. 13. The amounts transferred in the manner of item 12 shall remain in the transitional account until the Central Bank of Brazil or the Custodian registers the effectuation of the withdrawal operation. 14. In the event that the financial institution does not have, at the opening of STR, sufficient provision of funds in the Banking Reserves account to meet the entry referred to in item 12, the request shall remain pending service. 15. In case of cancellation of the withdrawal request, the amount corresponding to the withdrawal request shall be returned to the Banking Reserves account of the financial institution. 16. In the case provided for in item 15, the amount of the "ad valorem" fee shall not be returned to the Banking Reserves account of the financial institution, when it is due. 17. The credits corresponding to cash deposit operations shall be made in the Banking Reserves account of the financial institution at the moment of their effectuation, when the debits of the corresponding "ad valorem" fees shall also occur, in the case of deposits made with the Custodian. ON THE EFFECTUATION OF CASH WITHDRAWAL OR DEPOSIT 18. The effectuation of the cash withdrawal or deposit operation depends on the presentation by the financial institution, to the Central Bank of Brazil or to the Custodian, as the case may be, of the corresponding authorization document for cash movement, namely: I - Financial Institution Withdrawal - SIF; and II - Financial Institution Deposit - DIF. 19. The documents named in the previous item must be signed by whoever, by force of the constitutive acts, decision of assembly or board of directors, grant of mandate or act of competent authority, holds powers to represent the financial institution in or out of court or, also, by a duly accredited agent. 20. Commercial banks, multiple banks with a commercial portfolio and savings banks must maintain an updated register with Mecir and the Custodian, of the signatures of the persons accredited for the purposes provided for in item 18. 21. The Central Bank of Brazil and the Custodian may, before effectuating the withdrawal operation, modify its quantitative composition, provided that the original financial value is maintained. 22. The minimum unit for cash withdrawal or deposit is the bundle of banknotes - consisting of one hundred units of the same denomination - and fractional quantities are not permitted. ON THE CONFERENCE OF CASH 23. The cash received from financial institutions holding Bank Reserve accounts shall subsequently be checked by the Central Bank of Brazil or by the Custodian. 24. The differences found, whether lower or higher, shall, throughout the day, be communicated to the
financial institutions by means of a specific message from the Brazilian Payment System Message Catalog, as well as the final daily balance of the differences, which shall aggregate the occurrences found in the operations carried out with the Central Bank of Brazil and with the Custodian. 25. If the final daily balance of the differences is against the financial institution, a regularization request message shall be issued on the date of determination, awaiting the respective debit authorization to be posted to the Bank Reserve account on the first subsequent business day. 26. If the final daily balance of the differences is in favor of the financial institution, the respective credit shall be posted to the Bank Reserve account of the favored financial institution on the first subsequent business day. 27. In the absence of debit authorization for regularization of a lower difference, under the terms of item 25, the amounts owed shall be offset in the next deposit operation carried out by the financial institution with the Central Bank of Brazil or the Custodian. ON COUNTERFEIT NATIONAL PAPER CURRENCY AND COINS 28. National paper currency and metal coins identified by financial institutions as counterfeit or of doubtful legitimacy must be registered in the CIR using specific messages from the Brazilian Payment System Message Catalog. 29. The national paper currency and metal coins referred to in item 28 must be delivered to Mecir, in Rio de Janeiro, or to its Technical Managements located in the cities of Belem - PA, Belo Horizonte - MG, Brasilia - DF, Curitiba - PR, Fortaleza - CE, Porto Alegre - RS, Recife - PE, Salvador - BA and Sao Paulo - SP, accompanied by the document Recibo de Encaminhamento - RE. 30. Financial institutions may follow the processing of each paper currency and coin sent for analysis, as well as learn the result of the examination carried out and of any credits referring to specimens identified as legitimate, by using a specific message from the Brazilian Payment System Message Catalog. 31. The documents referred to in items 18 and 29 observe the standards contained in the models attached to this circular letter. 32. This circular letter enters into force on 22 April 2002, when the transactions PCIR550 - Solicitacoes de Numerario - Instituicoes and PCIR577 - Atualizacao/Consulta Numerario Suspeito - IF, of the Central Bank Information System - Sisbacen, will be available only for consultations prior to 22 April 2002 and routines related to the supply of cash. Rio de Janeiro, 16 April 2002. Department of Currency in Circulation Luis Henrique de Almeida Cabral Deputy Head .................................................................... Obs. The annexes cited in item 31 of this Circular Letter are available at the electronic address http://www.bcb.gov.br, at the link "Legislacao, Normas e Manuais / Normativos".