Circular No. 48/2018/TT-NHNN dated December 31, 2018 of the State Bank of Vietnam on savings deposits

THE STATE BANK OF VIETNAM 

Circular No. 48/2018/TT-NHNN dated December 31, 2018 of the State Bank of Vietnam on savings deposits

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law on amendments to the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Ordinance on Foreign Exchange dated December 13, 2005 and the Ordinance on the Ordinance on Foreign Exchange dated March 18, 2013;

Pursuant to the Decree No. 70/2014/ND-CP dated July 17, 2014 on detailing a number of articles of the Ordinance on foreign exchange and the Ordinance amending, supplementing a number of Articles of the Ordinance on foreign exchange;

Pursuant to the Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, entitlements and organizational structure of the State Bank of Vietnam;

At the request of the Director of Financial Policy Department and the Director of Department of Foreign Exchange Management;

The Governor of the State Bank of Vietnam promulgates a Circular on savings deposits.

Article 1. Scope of adjustment and subjects of application

This Circular sets forth savings deposits between credit institutions, branches of foreign banks (hereinafter referred to as credit institutions) and depositors.

Article 2. Savings deposit-taking credit institutions

A savings deposit-taking credit institution prescribed in this Circular refers to a credit institution incorporated and operating under the Law on Credit Institutions, including:

1. Commercial banks.

2. Cooperative banks.

3. Microfinance institutions.

4. People s credit funds.

5. Branches of foreign banks.

Article 3. Depositors

1. Vietnamese citizens who are 18 years of age or older and have full civil capacity as per the law.

2. Vietnamese citizens who are 15 years of age to under 18 years of age and have not had limited legal capacity or lack of legal capacity as per the law.

3. Vietnamese citizens who have limited legal capacity or lack of legal capacity as per the law or are under 15 years and have their savings deposit transactions conducted by their legal representatives; Vietnamese citizens with limited cognition or behavior control by law who have their savings deposit transaction conducted by their guardians.

Article 4. Scope of taking and making of savings deposits

1. The credit institutions may take savings deposits in accordance with their scope of operations as per the law and establishment licenses of credit institutions.

2. Vietnamese citizens may make savings deposits in Vietnamese dong; Vietnamese residents may make savings deposits in foreign currencies.

Article 5. Interpretation of terms

For the purposes of this Circular, these terms below shall be construed as follows:

1. “Savings deposit” means an amount of money that a depositor deposits at a credit institution following the principle that principal and interest will be paid in full under an agreement with the credit institution.

2. “Joint savings deposit” means a savings deposit jointly made by at least 2 people.

3. “Savings deposit transactions” includes taking and making of savings deposits; payout and withdrawal of savings deposits; pledging savings deposits as collateral and transferring of ownership of savings deposit.

4. “Identity proof of depositor” refers to an identification card, a citizen identification card or a passport which remains valid or a birth certificate of a person aged under 14 years.

5. “Identity proof of legal representative or guardian” (hereinafter referred to as legal representative):

a) In case of legal representative being an individual: An identification card, a citizen identification card or a passport which remains valid;

b) In case of legal representative being a juridical person: An establishment decision, operation license, business registration certificate, business registration certificate, or another equivalent document as per the law; identification card, citizen identification card, or passport which remains valid and proof of representative status of the legal representative who conducts a savings deposit transaction.

Article 6. Types of savings deposits

1. Savings deposits are classified by:

a) Terms of deposit, including demand savings deposit and term savings deposit. Specific terms of deposit are determined by credit institutions;

b) Other criteria determined by credit institutions.

2. Credit institutions specify types of savings deposits in accordance with this Circular and relevant laws and regulations, adequately securing the deposits of depositors and operations of credit institutions. Regulations on types of savings deposits must have at least the following information: Interest payment methods, interest calculation methods, deposit term extension, premature withdrawal from savings deposits, and required advance notice upon premature withdrawal from savings deposits.

Article 7. Passbooks

1. Passbook or bankbook (hereinafter referred to as passbook) is the certificate of ownership of savings deposit made by the depositor held at a credit institution, applied to the case of taking of savings deposit at the legal transaction office under the operation network of the credit institution.

2. Details of passbook

a) A passbook must have at least the following:

(i) Credit institution’s name and seal; full name and signature of the bank teller and the legal representative of the credit institution;

(ii) Full name, number and date of issue of identity proof of the depositor or all depositors (in case of a joint savings deposit) and information of the depositor’s legal representative if the savings deposit is made by the legal representative;

(iii) Number of passport; amount; currency; deposit date; maturity date (applied to term savings deposit); deposit term; interest rate; interest payment method;

(iv) Methods offered to depositors to access their savings deposits;

(v) Actions to be taken in a case where a passbook is crumpled, torn or lost;

b) Apart from regulations prescribed in Point a of this Clause, a passbook may have other information as prescribed by the credit institution.

Article 8. Transaction offices offering savings deposits taking and payout

1. The credit institution shall take and pay out savings deposits at legal transaction offices under its operation network (hereinafter referred to as transaction office), except for taking and paying out online savings deposits.

2. As for a passbook, the credit institution may take and pay out saving deposit at the transaction office which issued such passbook or any of other transactions offices. If a credit institution takes and pays out saving deposits in multiple transaction offices, it must ensure that saving deposits are taken and paid out accurately and safely as to the depositors and the credit institution’s operation.

Article 9. Interest rate

1. Each credit institution sets forth regulations on savings deposit interest rate in accordance with regulations of the State Bank of Vietnam on interest rates in every period.

2. Savings deposit interest calculation method shall be accordant with provisions of the State Bank of Vietnam.

3. Savings deposit interest payment method shall be made as agreed upon between the credit institution and the depositor.

Article 10. Currencies upon savings deposit taking and payout

1. The currency upon savings deposit taking is Vietnamese dong or foreign currency. The credit institution may determine the type of foreign currency/ies which it takes saving deposits.

2. The currency upon savings deposit payout is the one that the depositor previously made. The saving deposit payout as to foreign currency small change shall be accordant with regulations of the credit institution.

3. Regarding a savings deposit in Vietnamese dong of a Vietnamese citizen who is a resident, the depositor and the credit institution may reach an agreement as to payout of principal and interest into a checking account in Vietnamese dong of such depositor.

4. Regarding a savings deposit in Vietnamese dong of a Vietnamese citizen who is a non-resident made from a checking account of the depositor, such depositor and the credit institution may reach an agreement as to payout of principal and equivalent interest into a checking account in Vietnamese dong of such depositor.

5. Regarding a savings deposit in foreign currency of a Vietnamese citizen who is a resident made from a checking account of the depositor, such depositor and the credit institution may reach an agreement as to payout of principal and equivalent interest into a checking account in foreign currency of such depositor.

Article 11. Methods of access to savings deposits and notifications upon changes to savings deposits

1. The credit institution must provide depositors with a method of access to their saving deposits.

2. Apart from the method prescribed in Clause 1 of this Article, the credit institution and depositors may reach an agreement on other methods enabling the depositors to access their saving deposits and giving and receiving notifications upon changes to these saving deposits.

Article 12. Procedures for making saving deposits at transaction offices of credit institutions

1. A depositor must come to a transaction office of a credit institution in person and present his/her identify proof; in case of a joint savings deposit, all depositors must present their identify proof in person. If the savings deposit is going to made by the legal representative, such legal representative must present his/her representative status proof and identity proof and identity proof of depositor.

2. The depositor has to register his/her sample signature in a case where he/she wishes to change his/her old sample signature or he/she has not had such a sample signature registered at the credit institution. If the depositor is unable to write, read or see: he/she will follow the guidelines of the credit institution.

3. The credit institution shall compare and update information of depositors as per the law on anti-money laundering.

4. The depositor will follow other procedures as guided by the credit institution.

5. Upon completion of procedures prescribed in Clauses 1, 2, 3 and 4 of this Article, the credit institution shall take the savings deposit and give the passbook to the depositor.

6. Adding credit to a savings account of an issued passbook:

a) Adding credit in cash: The depositor shall comply with Clauses 1, 2, 3, and 4 of this Article and present the issued passbook. The credit institution shall take the credit to the savings account, record the credit to the issued passbook and give the passbook to the depositor;

b) Adding credit from a checking account of the depositor: The depositor will follow procedures as guided by the credit institution.

Article 13. Pledging saving deposits as collateral

Saving deposits are pledged as collateral as prescribed in guidelines of the credit institutions in accordance with law on secured transactions.

Article 14. Transfer of ownership of savings deposits

The credit institution shall guide depositors to carry out the transfer of ownership of savings deposits in accordance with relevant law provisions. Except for transfer of ownership under inheritance, the transferee must meet the requirements prescribed in Clause 2 Article 4 of this Circular.

Article 15. Deposit term extension

Upon the maturity date of a savings deposit, if the depositor does not withdraw the deposit and make any request or reach any agreement, the credit institution may grant a deposit term extension in accordance with regulations of the credit institution as to such types of saving deposit.

Article 16. Actions to be taken upon risks

The credit institution shall provide guidelines for actions against crumpled, torn or lost passbooks and other risks as to savings deposits in accordance with relevant law provisions, management model, business characteristics and conditions of the credit institution and protect legitimate rights of the depositor.

Article 17. Premature withdrawal from savings deposits

1. The premature withdrawal from a savings deposit shall be done in conformity with agreement between the credit institution and the depositor.

2. Interest rate for premature withdrawal from savings deposit shall be charged in accordance with regulations of the State Bank of Vietnam on interest rate charged for premature withdrawal from savings deposit at the withdrawal time.

Article 18. Procedures for paying out saving deposits at transaction offices of credit institutions

1. The credit institution requests the depositor to follow the following procedures:

a) Present the passbook;

b) Present the identity proof of the depositor; or of all depositors (applied to joint savings deposit). If the savings deposit is going to paid out by the legal representative, such legal representative must present his/her representative status proof and identity proof and identity proof of depositor;

c) Submit a savings deposit withdrawal form bearing the signature as the same as the sample signature held at the credit institution. If the depositor is unable to write, read or see: he/she will follow the guidelines of the credit institution.

2. The credit institution shall compare information of the depositor, the depositor’s legal representative in a case where the savings deposit is paid out through the legal representative, information in the passbook, signature in the withdrawal form to with the information held at the credit institution.

3. After the credit institution and the depositor complete the procedures prescribed in Clause 1 and Clause 2 of this Article, the credit institution shall pay out the depositor the principal and interest of the savings deposit in full.

4. The credit institution shall provide guidelines for the following payout procedures in accordance with this Circular and relevant law provisions, ensuring that the savings deposit payout is made accurately and safely as to the depositor and the operation of the credit institution:

a) Savings deposit payout under inheritance;

b) Savings deposit payout under authorization of the depositor.

Article 19. Taking and payout of online savings deposits

1. The credit institution shall provide guidance on procedures for taking and payout of online savings deposits through checking accounts of depositors held at the credit institution in accordance with this Circular, regulations of law on electronic transactions, anti-money laundering and relevant law provisions, ensuring that the savings deposit taking or payout is made accurately and safely as to the depositor and the operation of the credit institution.

2. The credit institution must maintain all information associated with the taking and payout of online savings deposits to meet the requirements of the depositors concerning trace requests, verification and dispute settlement.

Article 20. Internal regulations

1. Pursuant to the Law on Credit Institutions, this Circular and relevant law provisions, the credit institution shall promulgate internal regulations on savings deposit transactions of the credit institution in conformity with its management model, characteristics, business conditions, ensuring that the savings deposit payout is made accurately and safely as to the depositor and the operation of the credit institution.

2. The internal regulations must specify responsibilities and obligations of each department and individual relating to savings deposit transactions and contain at least the following:

a) Taking of savings deposit, at least containing: receiving cash, recording in accounting books of savings deposit taking; filling contents prescribed in Clause 2 Article 7 in the passbook; give the passbook to the depositor;

b) Paying out savings deposit, at least containing: receiving the passbook; recording in the accounting book; paying out the principal and interest of savings deposit;

c) Pledging saving deposits as collateral;

d) Transferring ownership of savings deposits;

dd) Taking actions against risks prescribed in Article 16 of this Circular;

e) Designing, printing, receiving and discharging, storing, stocktaking, and managing passbooks;

g) Methods enabling the depositors to access their saving deposits and giving and receiving notifications upon changes to these saving deposits prescribed in Article 11 of this Circular;

h) Taking and paying out online savings deposits (applied to credit institutions taking and paying out online savings deposits).

Article 21. Public posting up

1. The credit institution must post up publicly at its transaction offices and post on its website (if any) the following:

a) Savings deposit interest rates; fees (if any);

b) Available currencies upon taking of savings deposits;

c) Procedures for savings deposit transactions between the credit institution and depositors;

d) Regulations on types of savings deposits;

dd) Methods offered to depositors to access their saving deposits;

e) Actions to be taken in a case where a passbook is crumpled, torn or lost.

2. The credit institution must comply with its regulations publicly posted up as prescribed in Clause 1 of this Article.

Article 22. Implementation provisions

1. This Circular takes effect on July 05, 2019 and supersedes Decision No. 1160/2004/QD-NHNN dated September 13, 2004 of the Governor of the State Bank of Vietnam on the issuance of the regulation on savings deposits, Decision No. 47/2006/QD-NHNN dated September 25, 2006 of the Governor of the State Bank of Vietnam on the amendment, supplement of several articles of the Regulation on savings deposits issued in conjunction with the Decision No. 1160/2004/QD-NHNN dated September 13, 2006 of the Governor of the State Bank.

2. With regard to any savings deposit with positive balance until the effective date of this Circular, the credit institution and the depositor keep abiding by their agreement or revise the agreement in accordance with this Circular.

3. Vietnam Bank for Social Policies shall, pursuant to this Circular, provide guidelines for savings deposit transactions at Vietnam Bank for Social Policies in accordance with laws and regulations on organization and operation of Vietnam Bank for Social Policies.

Article 23. Implementation organization

The Chief officers, Director of the Financial Policy Department, Director of Department of Foreign Exchange Management, Heads of affiliates of the State Bank of Vietnam, Directors of the State Bank branches of provinces and central-affiliated cities, Presidents of the Board of Directors, Presidents of the Board of members and Director General (Director) of credit institutions shall implement this Circular./.

For the Governor

The Deputy Governor

Nguyen Thi Hong.