Deferred Settlement System for Interbank Credit Orders
(Sistema de Liquidação Diferida das Transferências Interbancárias de Ordens de Crédito) - Siloc
Siloc is a system operated by the Interbank Payment Clearing House (Câmara Interbancária de Pagamentos - CIP) and settles interbank obligations related to:
• “boletos de pagamento”1 with value lower than R$ 250 thousand;
• Credit Transfer Document (DOC)2 ;
• Special Credit Transfer (TEC)3 ;
• payment cards; and
• transactions carried out in ATMs shared networks.
In the same manner as Compe, Siloc uses a deferred net settlement mechanism, i.e., the obligations are accumulated for a period and later settled in batches by the net multilateral value in specific settlement sessions.
On each business day (T), two settlement sessions are carried out, one in the morning and the other one in the afternoon. In the first session, interbank obligations related to credit orders initiated at the bank system on the previous business day (T-1) are settled, except payment card settlement, which has a varying deadline depending on each product. In the second session there is mainly the settlement of obligations related to documents previously settled in the morning session which, for whatever reason, were returned by the participants due to inconsistencies in the reported data.
At each session, the multilateral position is informed to the participants. With this information, the drawee participants transfer the amount due to the clearing house, and then the clearing house transfers the amounts received to the payee participants, ending the settlement process. All these transactions occur in the accounts kept by the participants and Siloc at the Banco Central do Brasil.
1Bar-coded standardized document that allows bills to be paid in any bank.
2Funds transfer order through which the issuing client, account holder or not of a particular bank, transfers funds to the account of the beneficiary customer at another bank. DOC issuance is limited to the amount of R$ 4,999.99. The issuing customer's checking account is debited on the business day preceding the interbank settlement.
3Instrument through which the issuer, natural person or legal entity, orders a financial institution to make a set of funds transfers to numerous recipients, clients of other institutions, being each transfer limited to the amount of R$ 4,999.99. The issuing customer's checking account is debited on the same day of the interbank settlement.