The Central Bank published on 12 June 2020 the Circular 4,027, which established the Instant Payment System (SPI) and the Instant Payment Account (PI Account) and approved its regulations.
The purpose of the IPS is to enable transfers of funds from direct IPS participants via PI Accounts.
Direct participants in the SPI will connect to the RSFN by contracting circuits from the independent telecommunications operators that provide the network or, alternatively, through the PSTI authorized by the Central Bank.
The connection between an indirect participant and its settlement agent in the IPS, for purposes of settling instant payment orders, in turn, will be contractually defined between them, with the indirect participant being permitted to contract with only one direct participant (with alteration being possible).
The regulation brought brief changes as to the mandatory participants and modalities of participation in the SPI, which now follow the following provisions:
- Mandatory Participation: for participants of the PIX arrangement, pursuant to the arrangement's regulation, for the purposes of instant payment settlement; and
- Optional Participation: a) for clearing houses and providers of clearing and settlement services, for the sole purpose of settling private transactions for the provision of liquidity in the context of the SPI carried out between its participants; and b) for the National Treasury Secretariat (STN), for the exclusive purpose of making collections and payments related to its typical activities
- Direct Participation Mode: characterized by the ownership of an IP Account and direct connection of the participating institution to the SPI; and
- Indirect Participation Mode: in which the participating institution does not hold a PI Account and its participation occurs through a direct SPI participant, responsible for registering the indirect participant in the SPI and for acting as its settlor in the SPI for PI.
With respect to the PI Account, the Circular established this is intended for registration, in local currency: (i) the balance held with the Central Bank of Brazil for purposes of settlement of transactions within the SPI; (ii) the transfers of funds corresponding to the settlement of instant payment orders submitted for processing by the SPI; and (iii) the transfers of funds corresponding to the settlement of liquidity provision mechanisms for the PI Account.
It was also established that only the institutions authorized to operate by the Central Bank of Brazil participating in the SPI in the direct modality; (ii) the clearing houses and providers of clearing and settlement services authorized by the Central Bank to render private intermediation of liquidity services; and (iii) the STN, in the event it opts to participate in the SPI, may be holders of PI Account.
The SPI will start operating on November 3, 2020, with the possibility of gradually making the system functionalities available, including as to operating hours, and will be fully operational as of November 16, 2020 , for settlement of credit orders, 24 (twenty-four) hours a day and on every day of the year.
For further information, the Barcellos Tucunduva Payment team([email protected]) is at your disposal.
