Circular Letter No. 3998 — Clarifies on the charging of remunerative interest on the outstanding balance of overdrafts granted by financial institutions to natural persons and individual microentrepreneurs, creates and alters accounting rubrics

The Head of the Department of Financial System Regulation (Denor), acting in substitution, under the authority conferred by Article 23, item I, letter "a", of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 84,287, of February 27, 2015, based on item 4 of Circular No. 1,540, of October 6, 1989, and in view of the provisions of Article 3 of Resolution No. 4,765, of November 27, 2019,

RESOLVES:

Art. 1 The maximum rate of 8% per month of remunerative interest applicable to the outstanding balance of overdrafts granted by financial institutions in checking accounts held by natural persons and individual microentrepreneurs (MEI), as provided in Article 3 of Resolution No. 4,765, of November 27, 2019, is the effective rate that may be charged by the institution, regardless of the form of daily capitalization carried out during the month, and such limit may not be exceeded.

Art. 2 The following sub-items are created in the Accounting Plan of the Institutions of the National Financial System (Cosif):

I - with attributes UBERLMZ, the sub-items:

a) 1.6.1.20.31-4 Overdraft – MEI;

b) 1.6.1.20.35-2 Overdraft – Legal Entity;

c) 7.1.1.05.30-5 Income – Overdraft;

d) 7.1.1.05.31-2 Income – Overdraft – MEI;

e) 7.1.1.05.35-0 Income – Overdraft – Legal Entity;

f) 7.1.7.97.10-8 Overdraft Fee;

g) 7.1.7.97.11-5 Overdraft Fee – MEI; and

h) 7.1.7.98.05 -9 Overdraft Fee – Legal Entity;

II - with attributes UBDKIFJSWERLMNZ, the sub-item 7.1.1.05.99-6 Income – Other Loans; and

III - with attributes UBDKIFJACTSWERLMNYZ, the sub-item 7.1.7.97.99-5 Other Fees.

Art. 3 The function of item 7.1.7.98.00-4 BANKING FEE INCOME – LEGAL ENTITIES is amended, which shall now record the income from fees charged to legal entities that constitute effective revenue in the period, and the institution must maintain internal controls that allow for the identification of income by branch.

Art. 4 For the purpose of recording the utilized value of overdrafts in item 1.6.1.20.00-8 LOANS, the following must be recorded:

I - in sub-item 1.6.1.20.31-4 Overdraft – MEI, the revolving loans linked to a checking account held by an MEI; and

II - in sub-item 1.6.1.20.35-2 Overdraft – Legal Entity, the revolving loans linked to a checking account held by a legal entity.

Art. 5 This Circular Letter enters into force on January 6, 2020.

Paula Ester Farias de Leitão