Circular No. 25/2013/TT-NHNN dated December 02, 2013 of the State Bank of Vietnam providing for withdrawal and exchange of money not eligible for circulation

THE STATEBANK OF VIETNAM

Circular No. 25/2013/TT-NHNN dated December 02, 2013 of the State Bank of Vietnam providing for withdrawal and exchange of money not eligible for circulation

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated 16 June 2010;

Pursuant to the Decree No. 96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

Pursuant to the Decree No. 40/2012/ND-CP dated 2 May 2012 of Government on money issue operation; reservation, transportation of precious property and valuable papers within State Bank system, credit institutions and foreign bank branches;

Upon proposal of the Director of Issue and Vault Department;

The Governor of the State Bank hereby issues the Circular providing for withdrawal and exchange of money not eligible for circulation.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides for the standard for money not eligible for circulation; withdrawal, exchange, selection, packing, delivery of money not eligible for circulation by State Bank of Vietnam (hereby called State Bank), credit institutions, foreign bank branches, State Treasury.

Article 2. Subjects of application

1. State Bank branches in provinces, cities under central government’s management (herein after generally called State Bank branches), Central Banking Department, Issue and Vault Department.

2. Credit institutions, foreign bank branches, State Treasury (hereinafter referred to as the collecting-exchanging unit).

3. Institutions, individuals who perform transactions in cash or have a demand for exchanging money that is not eligible for circulation with the State Bank and the collecting-exchanging units (hereinafter collectively referred to as customers).

Article 3. Money which is not eligible for circulation

1. Money which is not eligible for circulation shall be paper money (cotton money and polymer money), coins which are issued by the State Bank of Vietnam and being in legal circulation, but are torn to pieces, damaged or deformed in accordance with the standards for money not eligible for circulation.

2. The State Bank of Vietnam shall announce typical forms of money not eligible for circulation as a basis for withdrawal, exchange, selection, classification of money.

Chapter II

PROVISIONS ON STANDARDS, SELECTION, WITHDRAWAL, EXCHANGE OF MONEY NOT ELIGIBLE FOR CIRCULATION

Article 4. Standards for money not eligible for circulation

1. Money that is torn into pieces, damaged due to the circulation process (group of objective reasons):

a) Paper money, of which color is changed, of which designs, letters, digits are faded, which is wrinkled up, smeared, dirty, old; torn into pieces or patched up in full form;

b) Coins, of which the picture, designs, letters, digits and the plated layer are worn out, rusted, damaged partially or wholly.

2. Money that is torn into pieces, damaged due to the preservation process (group of subjective reasons)

a) Paper money which is holed, partially torn; patched up; fired or deformed due to contact with high heat source; of which printing paper, color, security specifications are changed due to the chemical impact (for example detergent, acid, corrosive, etc); which contains the writing, is drawn, erased; which is decayed or deformed due to other reasons, but not due to acts of deterioration.

b) Coins, which are curved, deformed, or of which design, picture is changed due to the impact of external force or high temperature; which are rusty due to contact with metal corrosive chemicals.

3. Money which contains technical error caused during the printing, coining process of the manufacturer, for example printing paper is rumpled causing the loss of picture or printing color, which is splattered with printing ink and contains other mistakes during the printing, coining process.

Article 5. Selection of money not eligible for circulation

1. During the cash collection, payment process with customers, State Bank branches, Central Banking Department, the collecting-exchanging unit shall carry out the selection, classification and withdrawal of money not eligible for circulation.

2. During the counting, delivery and receipt of cash among collecting-exchanging units, State Bank branches, Central Banking Department, if detecting money torn, damaged, due to the preservation process, in any bundle of money which is eligible for circulation, the collection and exchange shall be carried out.

3. In receipt of cash from collecting-exchanging units, State Bank branches, Central Banking Department shall have right to check by chance the exchanged money bundle; in the event that the proportion of the money not eligible for circulation exceeds 5% out of total bundles of checked money eligible for circulation, the total amount of money from the paying units shall be refused, and at the same time, a selection shall be required.

Article 6. Exchange of money not eligible for circulation

1. FormoneythatisnoteligibleforcirculationasstipulatedinClause1andClause 3, Article 4 of this Circular, State Bank branches, Central Banking Department, the collecting-exchangingunitshallberesponsibleforimmediate withdrawal,exchangefor customers who have demand, without limit ofquantity and requirement of procedures.

2. FormoneythatisnoteligibleforcirculationasstipulatedinClause2Article4ofthis Regulation, customers shall submit that money to the State Bank branches, Central BankingDepartment,collecting-exchangingunits.Theseunitsshallreceiveandconsider exchanging with the following conditions:

a) Money torn, damaged not due to act of destruction;

b) Wherethebanknoteisfired,holed,tornpartially,its remainingarea mustbeequaltoor largerthan60%oftheareaofthenoteofthesametype,ifitispatchedup,itsareamustbe largerthan90%ofthenoteofthesametypeanditsoriginandlay-outmustremain unchanged (front, back; upper, lower; right, left),and its security elements are identifiable;

For polymermoney, which is fired or shrunk due to contact with high heat source, its remaining areamust be at least equal to 30% of the note of the sametype, its lay-out remainsunchanged,andatleasttwooffollowingsecurityelementsmustbeidentifiable: the hidden picture in the small window; luminescentcolorlessink,luminescenceofthe serial number lines, security fiber, IRIODIN factor, portrait of thePresident Ho Chi Minh.

Basedontheconditionsforexchangeofmoneyas stipulatedinthis Paragraph, State Bank branches,Central Banking Department, the collecting- exchanging unit shall carryout the moneyexchangeforcustomers.Iftheconditionsformoneyexchangearenotsatisfied, StateBankbranches,CentralBankingDepartment,thecollecting-exchanging unit shall return themoney to customers and give a notice of the reason thereof.

Formoneynotesofwhichexchangeconditionsareunidentifiedandneed furtherappraisal, therelevantcustomermustsubmitawritten applicationformoneyexchange (as per Appendix No. 01 attached herewith).

Article 7. Appraising money which is not eligible for circulation

1. Whereitisimpossibletodeterminewhetherthemoneyfullysatisfiestheconditionsfor exchangeornotandrequireappraisal,withinaperiodof3workingdaysfromthereceipt ofthemoneyfromcustomers,thecollecting-exchangingunitshalldeliver themoney togetherwiththerequestfortheappraisal(asperAppendixNo.02attachedherewith)to thelocalStateBankbranchforappraisal.FortheCentral BankingDepartment,money shall be delivered together with the applicationfor appraisal to the Issue and Vault Department.

2. Withinaperiodof3workingdaysfromthereceiptoftherequestfortheappraisalfrom thecollecting-exchangingunit,theStateBankbranchshallgiveawritten noticeofthe appraisalresultandreturnallthemoneytotherequestingunit.Incasethatitisunableto appraisethemoney,theStateBankbranchesshall,withinaperiod of07workingdays fromthe receipt of themoney and the request for the appraisal from the collecting- exchangingunitorrequestforthemoneyexchangefromcustomer,theStatebankbranch shalldeliverallthemoneyinquestiontogetherwithawrittenapplicationfortheappraisal to the Issue and Vault Department or Sub-Department of Issue and Vault in Hochiminh city for appraisal.

3. Withinaperiodof5workingdaysfromthereceiptoftherequestfortheappraisalfrom theStateBankbranchesandCentralBankingDepartment,theIssueandVaultDepartment, orSub-DepartmentofIssueandVaultinHochiminhcityshallgiveawrittennoticeofthe appraisal result and return all themoney to the unit that has requested for appraisal.

4. The unit that requests for appraisal shall organizethetransportofmoney not eligiblefor circulation and take responsibility for security assurance during the transportation process.

Article 8. Dealing with money damaged, deformed that is suspected due to act of destruction

In case of detecting corrupted, deformedmoney which is not qualified for circulation, and thereasonthereofissuspectedoftheactofdeterioration, thecollecting-exchangingunit shall draw up the minutes, temporarily seizethecorrupted,deformedmoneyand immediatelydeliverittothePublicSecurity Agencyinthelocalityforinspectionand appraisal.The conclusionmade bythe PublicSecurity Agency shall be used as the basis so asthecollecting-exchangingunitperformsthemoneyexchange forcustomersordealwith the corrupted, deformed money in accordance with provisions of applicable laws.

Chapter III

PACKING, DELIVERY AND RECEIPT OF MONEY NOT ELIGIBLE FOR CIRCULATION

Article 9. Packing of money not eligible for circulation

1. After performing the withdrawal, exchange, selection of money not eligible for circulation,thecollecting-exchangingunitsshalltally,sealupandpreservethemoneyin accordancewithcurrentprovisionsoftheStateBankofVietnam.The applicationfor moneyexchangeofcustomersshallbekeptatthecollecting-exchangingunitforchecking when necessary.

2. Afterreceivingmoneynoteligibleforcirculationfromthecollecting-exchangingunits, StateBank sbranches,CentralBankingDepartmentshallberesponsibleforcheckingthe condition for exchangebefore packing, sealing upin accordance with current regulation.

Incaseofdeformedmoneywhich is unable to package, the Central Vault, SBV’s branches, theCentralBankingDepartmentshallcarryoutthepackageunderthefollowingmode:100 sheets (pieces) with the same denominationarepackedintoasmallbag;10smallbagsare packedintoonelargebag,10large bags are packed into asack.Themoneysackshallbe sealed up, leaded in accordance with current provisions.

3. Ifthemoneyquantityisnotsufficientforpackagebybundle(orbag),State Bank branches,CentralBankingDepartmentthecollecting-exchangingunitshallpack,preserve themseparately for convenience incounting, delivery and receipt.

Article 10. Delivery and receipt of money not eligible for circulation

1. The delivery, receipt ofmoney noteligibleforcirculation between the collecting- exchangingunitsandSBV’sbranches,theCentralBankingDepartmentshallbeperformed inaccordancewithcurrentregulationsofStateBankondelivery, receiptofmoney;the delivery,receiptscheduleshallbestipulatedbytheGeneral ManagerofSBV’sbranch, Director of the Central Banking Department.

2. The delivery and receipt ofmoney not eligiblefor circulation between the SBV’s branches,CentralBankingDepartmentandtheCentralVaultsandtheStateBankbranchin Binh Dinh province shall beperformed in accordancewith the current regulation on delivery, receipt ofmoney in the State Bank system.

Chapter IV

RESPONSIBILITIES OF THE RELATED UNITS

Article 11. The Issue and Vault Department

1. To set up and submit Governor the typical form of money which is not eligible for circulation in accordance with the regulation in Clause 2 Article 3 this Circular.

2. To guide, inspect the related units in implementation of this Circular.

Article 12. State Bank branches, Central Banking Department

1. To withdraw, exchange the money not eligible for circulation for institutions, individuals.

2. To post the typical form and provisions on withdrawal, exchange of money not eligible for circulation of the State Bank at transaction place.

3. State Bank branches shall guide, inspect the withdrawal, exchange, selection of the money not eligible for circulation of credit institutions, foreign bank branches, State Treasuries in the local area.

Article 13. Credit institutions, foreign bank branches, State treasuries

1. To select, classify the money not eligible for circulation.

2. To withdraw, exchange the money not eligible for circulation for institutions, individuals.

3. To post the typical form and provisions on withdrawal, exchange of money not eligible for circulation of the State Bank at transaction place.

Chapter IV

RESPONSIBILITIES OF THE RELATED UNITS

Article 14. Effectiveness

1. This Circular shall come intoeffectiveness from 20 January 2014.

2. TheDecision24/2008/QD-NHNNdated22August2008ofGovernorofStateBankon issuingtheRegulationonwithdrawal,exchangeofmoneynoteligibleforcirculationshall expire fromthe date when this Circular comes into effectiveness.

Article 15. Dealing with violation

The collecting-exchanging units which violate theregulationsinthisCircular, upon their degree, state of violation, shall be disciplined, administratively treated, compensate for damages or accused of criminal responsibilityin accordance with regulations of laws.

Article 16. Implementation organization

Directorof State Bank’s Office, Directorof the Issue andVault Department, Heads of the unitsofStateBank,GeneralManagerofState Bankbranchesinprovinces,cities;chairman of Board of Directors and General Directors(Directors)ofcredit institutions,foreign banks’ branches, director of State Treasuries shall be responsible for implementation of this Circular.

For the Governor of the State Bank of Vietnam

The Deputy Governor

Dao Minh  Tu

APPENDIX No. 01

APPLICATION FOR THE EXCHANGE OF MONEY NOT ELIGIBLE FOR CIRCULATION

To: ………………………..

- Customer’s: …………………………………………………………………………

- Identification card No.: …………… issuedby Public Security Agency …………… on……………

- Address: ……………………………………………………………………………………

- Telephone No.: ……………………………

Couldyoupleaseconsiderwithdrawing,exchangingthemoneynoteligibleforcirculation asfollows:

+ Amount in number: …………………………………………………..

(In words:……………………………………………………….)

+ Reasons:

………………………………………………………………………………………………

………………………………………………………………………………………………

Date…………………………….

* Note:

- Thecollecting-exchangingunitshallreturn01copyoftheapplicationwiththesignature of its head and seal

- The money not eligible for circulation can be listed in a separate table if necessary;

FORM NO. 02

APPLICATION FOR APPRAISAL OF MONEY NOT ELIGIBLE FOR CIRCULATION

*Themoneynot eligibleforcirculationcanbe listedin aseparatetable ifnecessary