CMN Resolution No. 1122 - Bank Service Tariffs - Setting Remuneration Tables, Freezing Tariffs Charged by Financial Institutions, Annexing Maximum Tariff Table, Revoking Resolution 874

RESOLUTION NO. 001122

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on this date, having regard to the provisions of Article 4, item IX, of the aforementioned Law,

HAS DECIDED:

I - To determine, in accordance with Article 35, Paragraph 2, of Decree-Law No. 2,284 of March 10, 1986, the freezing of the tariffs charged by services provided by banking establishments, savings banks, and other financial institutions, to the extent applicable.

II - To establish that the charging of services may not be made at levels higher than those fixed in the annexed table.

III - The fixing of tariffs for the provision of services, including collection and payment, to federal, state, and municipal government agencies, direct or indirect, public service concessionaires, and natural and legal persons, which have not been subject to specific tariffs, shall be subject to prior authorization by the Central Bank.

IV - The provision of conventional services, that is, services offered indiscriminately to all customers (account statements, signature verification, duplicate copies of documents, etc.), which have not been subject to specific tariffs, may not be charged at levels higher than those practiced until February 28, 1986.

V - The provision of non-conventional services (rental of safes, custody, cash transport, etc.), which have not been subject to specific tariffs, shall have its remuneration freely agreed upon by the parties.

VI - Expenses with postage, telegrams, telex, telephone calls, and teleprocessing performed by the bank shall be reimbursed by users, provided they refer to services requested by them.

VII - The form, conditions, and basis for charging tariffs shall be communicated to the user by the institution providing the services.

VIII - The charging of any remuneration for the provision of the following services is prohibited:

a) maintenance of mandatory deposit accounts or accounts payable to the order of the judiciary;

b) provision of checkbooks or individual checks resulting from agreements for the provision of payment and receipt services for salaries and benefits, contracted with public and private entities, with the charging of charges by the contracting party permitted;

c) provision of checkbooks or individual checks to students up to 24 years of age.

IX - To amend item I of Resolution No. 1,044 of August 15, 1985, which shall now be in effect with the following wording:

"I - Credit, financing, and investment companies must prominently state in their financing contracts:

a) the effective interest rate of the operation, in its monthly and annual expressions;

b) the costs related to credit opening;

c) the value of the Tax on Credit, Exchange, and Insurance Operations, and on Operations relating to Securities and Financial Instruments (IOF); and

d) the total amount to be paid by the borrower."

X - It is prohibited, in financing operations for the acquisition of goods and services, the charging, by intervening stores, service providers, or any other intermediaries, of additional amounts beyond those provided in this Resolution.

XI - The Central Bank may issue complementary norms necessary for the execution of the provisions of this Resolution.

XII - This Resolution shall enter into force on the date of its publication, when Resolution No. 874 of December 20, 1983, shall be revoked.

Brasília-DF, April 4, 1986

Fernão Carlos Botelho Bracher
President

Note: The annex to this regulation is available to interested parties at the headquarters of the Central Bank of Brazil.