Circular No. 30/2011/TT-NHNN dated September 28, 2011 of the State Bank of Vietnam prescribing the ceiling interest rate for Vietnam-dong capital mobilizations of institutions, individuals at some credit institutions, foreign bank’s branches

CIRCULAR

PROVIDING FOR THE MAXIMUM INTEREST RATE APPLICABLE TO DEPOSITS IN VIETNAMESE DONG OF ORGANIZATIONS, INDIVIDUALS AT CREDIT INSTITUTIONS, FOREIGN BANK S BRANCHES

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

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

Pursuant to the Law on Credit Institutions No.  47/2010/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;

With  a  view  to  implementing  the  Resolution  No.11/NQ-CP  dated  24  February 2011 of the Government on key solutions for inflation control, macro-economic stabilization and ensuring social security;

The State Bank of Vietnam hereby provides for the maximum interest rate applicable to deposits in Vietnamese dong of organizations, individuals at credit institutions, foreign bank s branches (hereinafter collectively referred to as credit institutions) as follows:

Article  1.Credit  institutions  shall  fix  their  interest  rate  applicable  to  deposits  in Vietnamese   dong   of   organizations   (excluding   credit   institutions)   and   individuals, including payments for sale promotion in any form as follows:

1.  For maximum interest rate applicable to demand deposits and deposits with term of less than one month: to be of 6% per annum.

2. For maximum interest rate applicable to deposits with term of one month and more: to be of 14% per annum; for local People s credit funds alone, they shall fix their maximum interest rate applicable to deposits with term of one month and more to be of 14.5% per annum.

3.  Deposits  shall  include  demand  deposits,  term  deposits,  savings  deposits,  deposit certificates, bills of exchange, bills, bonds and other forms of deposits of organizations(excluding credit institutions), individuals in accordance with provisions in Paragraph 13, Article 4 of the Law on Credit Institutions.

Article 2.The maximum interest rate applicable to deposits as provided for in Article 1, of this Circular shall be applicable to the method under which the interest is paid at the maturity and other methods of interest payment that are converted under the method of interest payment on maturity.

Article 3.Credit institutions shall post in public the interest rate applicable to deposits in Vietnamese dong at premises of receiving deposits in accordance with provisions of the State Bank of Vietnam. Credit institutions shall be strictly prohibited from providing sale promotion in receiving deposits in any form (in cash, interest rate or other forms) that are not in conformity with provisions of applicable laws and this Circular.

Article 4.Implementation organization

1.  This  Circular  shall  be  effective  from 01  October  2011  and  replace  the  Circular  No.02/2011/TT-NHNN dated 03 March 2011 of the Governor of the State Bank providing for the maximum interest rate applicable to VND deposits.

2.  For  interest  rates  applicable  to  term  deposits  in  Vietnamese  dong  mobilized  from

organizations, individuals at credit institutions arising prior to the effective date of this Circular shall be implemented until their expiry; in the event where at the ending of the agreed period, the organizations, individuals do not come to draw their deposits, then the credit  institutions  shall  fix  the  interest  rate  applicable  to  those  deposits  in  line  with provisions of this Circular.

3. Banking Inspection and Supervision Department and State Bank s branches in provinces, cities under the central Government s management shall carry out the inspection, supervision over the implementation of provisions on the interest rates applicable to USD capital mobilization; apply the measures within their authorities to deal with credit institutions which violate this Circular.

4.  The  Director  of  the  Administrative  Department,  Director  of  the  Monetary  Policy Department and Heads of units of the State Bank of Vietnam, General Managers of the State   Bank’s   branches   in   provinces   and   cities   under   the   central   Government’s management; Chairman of Board of Directors, Board of Members and General Directors (Directors)   of   credit   institutions,   and   related   organizations,   individuals   shall   be responsible for the implementation of this Circular.

For the Governor

Deputy Governor

NGUYEN DONG TIEN