National Council of Social Security readjusted level to 1.97% after banks suspended credit line
A February (Brazilian Federation of Banks) criticized the interest ceiling of 1.97% on the payroll of beneficiaries of the INSS (National Institute of Social Security). The new level was approved by the CNPS (National Social Security Council) this Tuesday (28.Mar.2023).
The federation stated that the disagreement is due to the new level set to be “still below the current costs for part of the banks that operate this line of credit”. Here’s the full of the note (36 KB).
However, Febraban stated that the proposal by the National Social Security Council represents “an important advance in relation to the previous ceiling” of 1.70%.
“The banks, contributing to ending the impasse and in view of the impacts on the granting of this financing line that are yet to be evaluated, decided to abstain from the vote”said the document.
According to the federation, it will be up to each financial institution, “in front of your business strategy”to assess “the convenience” of the operation of the payroll credit lines for INSS beneficiaries with the new determined interest ceiling.
INSS CONSIGNMENT
The controversy surrounding the INSS payroll took place after at least 10 financial institutions suspended credit operations for beneficiaries of the National Institute of Social Security. They were: Bradesco, Caixa Econômica, Banco do Brasil, Itaú, C6 Bank, Daycoval, PAN, Mercantil, PagBank and Bem Promotora.
The suspension adopted by the banks came after the National Social Security Council reduced the monthly interest ceiling for payroll-deductible social security benefits from 2.14% to 1.7%.
In the document, the council also set the maximum interest per month at 2.62% for operations carried out through credit cards and paycheck benefit cards. The resolution was published in Official Diary of the Union. Here’s the full (73 KB).
On Monday (20.Mar), the government backed down and decided to reassess the norm.
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