CMN Resolution No. 4765 - Provides for overdrafts granted by financial institutions in demand deposit accounts held by natural persons and individual microentrepreneurs (MEI)

The Central Bank of Brazil, in the form of art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on November 27, 2019, based on art. 4, items VI, VIII and IX, of the aforementioned Law, R E S O L V E D :
Art. 1 This Resolution regulates the overdraft granted by financial institutions in demand deposit accounts held by natural persons and individual microentrepreneurs (MEI). Sole Paragraph. For the purposes of this Resolution, an overdraft is defined as the granting of a revolving credit limit linked to a demand deposit account. Art. 2 The charging of a fee for making an overdraft available to the client is permitted. § 1 The charging of the fee provided for in the caput must observe the following maximum limits:
I - 0% (zero percent), for credit limits of up to R$500.00 (five hundred reais); and II - 0.25% (twenty-five hundredths of a percent), for credit limits exceeding R$500.00 (five hundred reais), calculated on the amount of the limit that exceeds R$500.00 (five hundred reais). § 2 The fee must be charged at most once a month. § 3 The charging of the fee must observe, where applicable, the provisions of Resolution No. 3,919, of November 25, 2010, and the inclusion of the service referred to in the caput in a service package linked to demand deposit accounts is not permitted. Art. 3 The remunerative interest rates charged on the utilized overdraft amount are limited to a maximum of 8% (eight percent) per month. Sole Paragraph. The charging of remunerative interest related to the use of the overdraft referred to in the caput must:
I - deduct the amount of the fee referred to in art. 2 charged in the month, when the interest amount is greater than that of the said fee; and II - be equal to zero, when the interest amount is equal to or less than that of the fee referred to in art. 2. Art. 4 For the purpose of granting an overdraft, credit limits compatible with the client's risk profile must be considered. § 1 Financial institutions are prohibited from imposing a limit higher than R$500.00 (five hundred reais), referred to in item I of § 1 of art. 2, if the client opts for a lower limit. § 2 The alteration of limits referred to in the caput, when not initiated by the client, must, in the case of:
I - reduction, be preceded by communication to the client, with at least thirty days' notice; and II - increase, be conditioned on the client's prior authorization, obtained for each offer of limit increase. § 3 Limits may be reduced without observing the prior communication period referred to in item I of § 2, provided that a deterioration in the client's credit risk profile is verified, according to criteria defined in the credit risk management policy. § 4 In the case of limit reduction under the terms of § 3, communication to the client must occur by the time of the said reduction. Art. 5 The Central Bank of Brazil is authorized to issue the norms and adopt the measures deemed necessary for the fulfillment of the provisions of this Resolution. Art. 6 This Resolution enters into force on January 6, 2020, producing effects with regard to art. 2 and the sole paragraph of art. 3:
I - immediately, for contracts signed after the date referred to in the caput; and II - from June 1, 2020, for contracts signed up to the date referred to in the caput. Roberto de Oliveira Campos Neto President of the Central Bank of Brazil