INSS Restores Bank Fee for Consignado Loans, Withholds R$2 Billion From Banco Master Pending Verification

Overview

• An agreement with Febraban and ABBC revives a legally authorized fee suspended since 2022, with R$148.4 million now being regularized.
• Each institution’s payment will be calculated yearly based on INSS operational costs and its share of consignado lending.
• INSS is retaining roughly R$2 billion tied to about 254,000 Banco Master contracts until the authenticity of signatures and documents is proven.
• A meeting with Banco Master’s liquidator is scheduled for next week to set documentation deadlines and consider refunds where authenticity is not demonstrated.
• The consignado market has about 65 million active contracts, totaling R$9.27 billion in monthly deductions from benefits.