2023-12-05 02:41:11
© Reuters. Minister of Social Security, Carlos Lupi 04/10/2022 REUTERS/Ueslei Marcelino
By Fabricio de Castro
SÃO PAULO (Reuters) – The National Social Security Council (CNPS) approved this Monday the reduction of the interest ceiling charged in payroll-deductible credit operations for INSS beneficiaries, the Ministry of Social Security reported.
The ceiling for payroll deduction operations fell from 1.84% to 1.80% per month, while the limit on credit card and payroll deduction card operations increased from 2.73% to 2.67% per month.
According to the ministry, the new ceilings will come into effect 5 days after the publication of the CNPS resolution.
“After this period, banks and financial institutions are prohibited from offering loans and payroll cards with rates higher than the new ceilings,” said the ministry in a note.
Also according to the ministry, the reduction in ceilings followed the cuts in the Selic base rate carried out by the Monetary Policy Committee (Copom) of the Central Bank. Currently, Selic is at 12.25% per year.
According to the Minister of Social Security, Carlos Lupi, if the Selic continues to fall, the ministry intends to propose to the CNPS a new reduction in the payroll ceiling.
In the decision taken this Monday by the council, 14 representatives of workers, retirees and employees voted to reduce the ceilings. Only the representative of the financial sector was against it.
The most recent data from the Central Bank show that personal credit operations for INSS beneficiaries were closed in September by financial institutions at an average rate of 24.4% per year, equivalent to around 1.84% per month — the ceiling changed this Monday by the council.
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