Circular No. 3109 — Establishes the Circulating Medium System (CIR) to regulate circulating medium operations by financial institutions

CIRCULAR NO. 003109

Establishes the Circulating Medium System - CIR, which regulates circulating medium operations carried out by the banking network within the scope of the Brazilian Payments System.

The Collegiate Board of the Central Bank of Brazil, in a session held on April 10, 2002, based on item II of Article 10 of Law 4.595, of December 31, 1964,

DECIDED:

Art. 1. To establish the Circulating Medium System - CIR, which regulates circulating medium operations carried out exclusively by commercial banks, multiple banks with commercial portfolios, and savings banks, among themselves and:

I - with the Central Bank of Brazil; and

II - with the Custodian.

Art. 2. The Circulating Medium System - CIR is the means by which financial movement operations on behalf of:

I - withdrawals, deposits, and forwarding of cash for legitimacy examination directly to the Central Bank of Brazil; must be registered and processed;

II - withdrawals and deposits in the network of agencies and advanced service posts of the Custodian; and

III - cash transfers between financial institutions authorized to access the Circulating Medium System - CIR.

Art. 3. Communication for the purposes of the operations referred to in Article 2 shall be made exclusively through specific messages defined in the Message Catalog of the Brazilian Payments System of the National Financial System Network - RSFN.

Paragraph 1. The formalization of requests for withdrawals, deposits, transfers, and forwarding of cash is the direct and exclusive responsibility of commercial banks, multiple banks with commercial portfolios, and savings banks.

Paragraph 2. In the event of a contingency of the Reserve Transfer System - STR, the Central Bank of Brazil will adopt the necessary measures to maintain the normal flow of circulating medium operations.

Art. 4. The inclusion of new agencies or new advanced service posts of the Custodian in the Register of Custodian Agencies, for the purposes of item II of Article 1, will depend on prior authorization from the Central Bank of Brazil.

Sole Paragraph. The Central Bank of Brazil, at its exclusive discretion, may deauthorize agencies or advanced service posts from the status of custodian whenever it deems convenient.

Art. 5. The Custodian shall be entitled to an "ad valorem" fee, as reimbursement for administrative and operational costs, levied on each confirmed withdrawal request and on each deposit request effected at its agencies or advanced service posts.

Paragraph 1. The "ad valorem" fee referred to in the caput is 0.16% (sixteen hundredths of a percent).

Paragraph 2. There shall be no charge of "ad valorem" fee on cash movements effected at the Central Bank of Brazil.

Art. 6. Commercial banks, multiple banks with commercial portfolios, and savings banks may supply other financial institutions holding a Bank Reserve account with excess cash, provided that:

I - the transfers referred to concern national banknotes and metallic coins; and

II - the Central Bank of Brazil will not interfere in the process of physical movement of cash.

Art. 7. The Circulating Medium Department - Mecir is authorized to issue operational norms and adopt the necessary measures for the execution of the provisions of this circular, including the authorization and deauthorization of agencies and advanced service posts referred to in Article 4.

Art. 8. This circular enters into force on April 22, 2002, repealing, on the same date, Circulars 1.824, of September 27, 1990; 2.702, of July 3, 1996; 2.374, of October 21, 1993; item I of Article 1 and Article 4 of Circular 1.579, of February 14, 1990; and Letters-Circulars 2.471, of June 30, 1994; 2.667, of July 4, 1996; and 2.890, of December 31, 1999.

Brasília, April 10, 2002

Edison Bernardes dos Santos Luiz Fernando Figueiredo Director Director