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Preventive Measure of INSS Halts Transfer of Instalments of Payroll Loans from Banco Master, Freezes R$ 27 Million, Strengthens Investigation of ACT, Restricts Access to Dataprev Systems, and Increases Uncertainty for Retirees with Active Deductions from Benefits Without Clarity on Future Contract Regularization.
On the last day of the month, the INSS suspended the transfer of amounts deducted from payroll for payroll loans and credit cards linked to Banco Master, following a flood of complaints about possible irregularities. The preventive measure has already resulted, as of December 9, 2025, in the freezing of approximately R$ 27 million related to instalments deducted directly from retirements and pensions.
As a result, retirees and pensioners continue to see deductions appearing on their monthly statement while the resources remain held in an account controlled by the INSS, which has opened a process to investigate failures in the Technical Cooperation Agreement with the bank and seeks to safeguard public interest amid Banco Central’s liquidation of Master.
What Exactly Did INSS Decide About Banco Master
In the decision signed by President Gilberto Waller Júnior, the INSS suspended the transfer of amounts deducted from benefits to pay payroll loans and credit card bills managed by Banco Master.
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The agency states that deductions continue to be made on payroll, but the money is not transferred to the bank while the preventive measure is in effect.
The order stipulates that the suspension remains in force until the conclusion of the administrative process opened at INSS to investigate irregularities in the ACT signed with Master, or until the institution proves objectively full compliance with the legislation and rules governing payroll credit for retirees and pensioners.
Blocking of R$ 27 Million and Cutoff of Access to Systems
Since the decision was implemented, the amount retained has already reached approximately R$ 27 million in transfers that, under normal conditions, would have been sent to Banco Master.
INSS states that the blockade is a way to contain possible irregularities and protect resources derived from social security benefits until the situation is clarified.
In addition to holding the money, the INSS requested Dataprev to withdraw the bank’s access to the payroll operational environments.
In practice, Master ceases to operate new contracts in the name of Social Security beneficiaries within official systems, being subjected to a higher degree of control while the internal investigation is ongoing.
Complaints from Retirees and Suspicions of Irregularities
The measure did not arise in isolation.
The Directorate of Benefits and Relationship with Citizens and the Federal Specialized Attorney’s Office reported a significant volume of complaints in official and public databases, involving difficulties in canceling contracts, undue charges, and payroll credit operations not recognized by retirees.
In the technical opinions, internal agencies point to signs of misalignment between Banco Master’s practices and the regulatory parameters required for payroll loans.
Among the points cited are the need for express authorization from the beneficiary, biometric authentication of contracts, proper document retention, and the institution’s responsibility for the actions of banking correspondents.
Previous Actions of INSS and Impact on the Payroll Loan Market
In October, INSS had already decided not to renew the Technical Cooperation Agreement that allowed Banco Master to offer payroll loans to retirees and pensioners in the agency’s systems.
As a result, the bank ceased to be accredited to initiate new operations, even before the suspension of transfers determined at the end of November.
Payroll lending is a modality where the instalments are deducted directly from the monthly benefit, which virtually eliminates the risk of default for the bank and guarantees lower interest rates compared to other credit lines.
Precisely for this reason, control failures and abuses in this segment have a direct and immediate impact on the income of millions of INSS beneficiaries.
Banco Master Under Scrutiny from Congress and Federal Police
The pressure on Banco Master does not come only from INSS. The CPI investigating deviations in social security pensions approved the summons of banker Daniel Vorcaro, controller of Master, to testify about payroll loan operations and other transactions under suspicion related to the group’s actions.
Vorcaro was arrested on November 18 at Guarulhos Airport, under the allegation of flight risk, and is currently responding to the investigations monitored by an electronic ankle bracelet.
The Federal Police is investigating the issuance of credit titles considered false in operations where the state bank BRB would have disbursed about R$ 12.2 billion in favor of Master, expanding the reach of investigations into the conglomerate.
What Is Still Not Clear for Those with Payroll Loans from Master
From the perspective of retirees and pensioners, the most sensitive point is that deductions continue to be made from benefits while the amounts are blocked by INSS, awaiting the conclusion of the administrative process.
The decision does not currently detail how contested operations will be handled or the timeline for possible reimbursement of withheld amounts.
The conclusion of internal investigations, Banco Master’s response to regulatory demands, and the progress of external investigations in the CPI and the Federal Police will determine whether operational cooperation with INSS can be restored or if the case will mark a structural change in the oversight of payroll loans aimed at Social Security beneficiaries.
In your opinion, who should be held accountable first for failures in payroll loans linked to Banco Master, the INSS, the bank itself, or the financial system oversight agencies?
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