INSS: payroll loan will be released by biometrics – 02/14/2023 – Market

The payroll loan from the INSS (National Institute of Social Security) should start to be released through biometrics later this semester. The institute is preparing a normative instruction with the new regulation of the measure, which is being prepared by the banks.

The objective is to allow the contracting of the payroll loan at a distance, without the retiree or pensioner needing to go to a bank branch. For experts, biometrics can enable safer hiring and less risk of fraud.

The implementation of biometric recognition had already been determined in a normative instruction published by the government in November 2022. According to the rule, biometrics should be implemented by financial institutions within 60 days, a period that expired in the first half of January.

With the delay, the INSS should publish, later this month, the normative instruction with guidance for banks to adopt the procedure. According to the agency, the implementation is mandatory and those who do not comply will be disqualified, that is, they will no longer offer the consignment.

Febraban (Brazilian Federation of Banks) states that it awaits the government’s rules to carry out the adequacy. “Banks are still awaiting details from the INSS on adequacy”, says a note.

Sources linked to the sector, however, told the report that the measure is already in the testing phase, but it is difficult to implement, as it requires technology development and data crossing with the government.

Facial recognition technology has already been developed by Serpro (Federal Data Recognition Service), a government company that operates in the area of ​​information technology. The Biovalid tool has already been used for opening companies at a distance and in the INSS proof of life.

How will biometrics work in the INSS payroll

Biometrics will be used in payroll loan contracts as if it were the signature of the insured person. In addition to biometric recognition, the retiree or pensioner must continue to present a personal identification document with a photo, in addition to the CPF number, to make the contract.

With this, the citizen will be able, at a distance, to close the contract with the financial institution. This will be the only form of remote authorization. According to INSS rules, authorization by telephone call or voice recording of the insured person will not be accepted.

Lawyer Tonia Galleti, coordinator of the legal department at Sindnapi (National Union of Retirees, Pensioners and the Elderly), believes that biometric recognition will bring more security.

According to her, who participates in the discussion group for the implementation of educational credit measures for INSS policyholders, the matter should be discussed at the Pension Council meeting scheduled for March.

Adriane Bramante, president of the IBDP (Brazilian Institute of Social Security Law), sees the measure as another tool to combat fraud. “The INSS has taken several measures to contain this fraud problem, but we are far from ideal”, she says.

“The granting of the benefit already with the loan blockage was a very positive measure and this option for biometrics as well.”

How does the INSS payroll loan work?

It is a loan deducted directly from the social security benefit. The measure is controlled by the CNPS (National Social Security Council) and has its own rules. Currently, there are 44.3 million active contracts, according to the institute.

The insured can commit up to 45% of the benefit to the payroll. Of this total, 35% are for the personal loan, 5% for the credit card and 5% for the benefit card, created last year.

The loan can be repaid in up to 84 months, which is seven years. Personal loan interest is capped at 3.06% per annum and credit card interest at 2.14% per annum, which means that the financial institution can charge less, but not more, than this rate.

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How to find out how much you can borrow

1. Access the My INSS application or website
2. On the home screen, where it says “For you”, go to “Loan Statement”
3. Click on the benefit number and a screen will open with all the information
4. If you receive more than one social security benefit, consult them one at a time
5. If the benefit is unlocked for payroll loans, the system will show the payroll margin
6. If you prefer to print, click “Download PDF”

How many contracts are allowed?

• According to the INSS, the insured can make up to nine personal loan agreements
• In the case of a credit card, only one contract is allowed.

Attention!
The interest rates offered by banks vary according to the customer’s profile. The ideal is to research to get the best deal.

Know how to protect your retirement from fraud

• Never provide personal information over the phone; INSS does not ask for any personal data or the benefit number
• If you choose to hire a payroll loan, look for the financial institution through official service channels or go to a branch
• Avoid lending your name; if the person is unable to pay, it is the pensioner who will have to pay the debt and have a dirty name
• Follow the monthly benefit statement to verify that no contract was entered into irregularly, with subscription fraud

• Do not click on any link you receive via email or WhatsApp

• If you are in doubt about incoming messages or calls, call 135 of the INSS