Circular No. 58/2019/TT-BTC dated August 30, 2019 of the Ministry of Finance on prescribing the management and use of the State Treasury’s accounts opened at the State Bank of Vietnam and commercial banks

CIRCULAR

Prescribing the management and use of the State Treasury’s accounts opened at the State Bank of Vietnam and commercial banks

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the Government’s Decree No. 163/2016/ND-CP of December 21, 2016, detailing the implementation of a number of articles of the Law on the State Budget;

Pursuant to the Government’s Decree No. 24/2016/ND-CP of April 5, 2016, providing the regime for management of state treasures;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Prime Minister’s Decision No. 26/2015/QD-TTg of July 8, 2015, defining the functions, tasks, powers and organizational structure of the State Treasury under the Ministry of Finance;

At the proposal of the General Director of the State Treasury;

The Minister of Finance promulgates the Circular prescribing the management and use of the State Treasury’s accounts opened at the State Bank of Vietnam and commercial banks.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation and subjects of application

1. Scope of regulation:

This Circular prescribes the management and use of the State Treasury’s accounts opened at the State Bank of Vietnam (below referred to as the SBV) and commercial banksfor collection of state budget revenues and payment of state budget expenditures.

2. Subjects of application:

a/ The Central State Treasury: State Treasury transaction bureaus; State Treasuries of provinces and centrally-run cities (below referred to as provincial-level State Treasuries); State Treasuries of urban districts, rural districts, towns and provincial cities (below referred to as district-level State Treasuries).

b/ Commercial banks involved in the bilateral electronic payment and organizations coordinating with the State Treasury in the collection of state treasure revenues.

Article 2.Interpretation of terms

1.State treasuresmeansall monetary amounts of the State at the State Treasury as specified in Article 62 of the Law on the State Budget.

2.Collection ofstate budget revenuescovers state treasure revenues; revenues of state financial funds and economic units and organizations having their accounts opened at the State Treasury, and other revenues as specified by law.

3.Payment of state budget expenditurescovers state budget expenditures; expenditures of state financial funds and economic units and organizations having their accounts opened at the State Treasury, and other expenditures as specified by law.

4.Payment accountmeans demand deposit account of the State Treasury units (State Treasury transaction bureaus, provincial-level and district-level State Treasuries) at commercial banks and used to collect state treasure revenues  and pay state budget expenditures.

5.General payment accountmeans a demand deposit account of the Central State Treasury at commercial banks and the SBV, which are used to rally balances of payment accounts and specialized collection accounts of the same banking system or from other general payment accounts (if any).

6.Specialized collection accountmeans a demand deposit account of provincial- and district-level State Treasuries at commercial banks, which are used to collect state treasure revenues.

7.General specialized collection accountmeans a demand deposit account of the Central State Treasury at commercial banks, which are used to collect balances of specialized collection accounts of the same commercial bank system.

8.Inter-bankelectronic paymentmeans the process of handling payment transactions via the inter-bank electronic payment system specified in Clause 1, Article 2 of the SBV’s Circular No. 23/2010/TT-NHNN of November 9, 2010, prescribing the management, operation and use of inter-bank electronic payment system.

9.Bilateral electronic paymentmeans the process of handling payment transactions by an electronic centralized method between the State Treasury and a commercial banking system via the computer network.

10.Commercial bank having established bilateral electronic payment with the State Treasurymeans a commercial bank having signed an agreement and is fully implementing professional processes, applying technical infrastructure and using human resources to perform the bilateral electronic payment with the State Treasury in accordance with the signed agreement.

11.Cut off time(below referred to as COT for short) means the time when the transmission and receipt of payment documents for comparing daily payment data between the State Treasury and the bank are ceased.

12.Core banking system(below referred to as Core Banking) means a systematic software on core banking, with a system of basic operational modules of the bank such as deposits, loans and customers, among others, and the software system that integrates informatics applications in information, assets, transactions and risk management, among others, in the banking system, which is the core of the entire information system of a banking system.

Chapter II

SPECIFIC PROVISIONS

Article 3.Types of accounts of the State Treasury

The State Treasury’s accounts opened at the SBV and commercial banks aredemand deposit accounts and include the following types of accounts:

1. General payment account.

2. General specialized collection account.

3. Payment account.

4. Specialized collection account.

Article 4.Places for openingthe State Treasury’s accounts

1. The Central State Treasury shall:

a/ Open the general payment account in Vietnamese dong (VND) and foreign currencies at the SBV Operations Center.

b/ Open general payment accounts (in VND and foreign currencies) at the headquarters of commercial bank systemshaving carried out bilateral electronic payment with the State Treasury.

c/ Opengeneral specialized collection accounts in VND at the headquarters of commercial bank systemshaving carried out bilateral electronic payment with the State Treasury (for commercial bank systems carrying out only the collection of state treasure revenues ).

2. State Treasury’s transaction bureaus shall:

a/ Open payment accounts in VND at the headquarters or branches of commercial banks incommercial bank systemshaving carried out bilateral electronic payment with the State Treasury.

b/ Open payment accounts in foreign currencies at headquarters or branches of commercial banks undercommercial bank systemshaving carried out bilateral electronic payment in foreign currencies with the State Treasury.

3. Provincial-level State Treasuries shall:

a/ Open a payment account in VND at one commercial bank branch in the same locality of thecommercial bank systemhaving carried out bilateral electronic payment with the State Treasury.

b/ For a provincial-level State Treasury located in a locality where a state budget revenue or expenditure transaction in foreign currency arises, open a payment account in foreign currency at a commercial bank branch licensed to provide foreign exchange services on the domestic market in the same locality of thecommercial bank systemhaving carried out bilateral electronic payment in foreign currencies with the State Treasury.

c/ Open a specialized collection account in VND atcommercial bank branch in the same locality of thecommercial bank systemhaving carried out bilateral electronic payment with the State Treasury (except for commercial bank branches in the same commercial bank system with the commercial bank branch where the provincial-level State Treasury opens its payment account).

4. District-level State Treasuries shall:

a/ Open a payment account in VND at a commercial bank’s branch or transaction office convenient for transactions, which is in the commercial bank system having carried out bilateral electronic payment with the State Treasury.

b/ Open aspecialized collection account in VND ata commercial bank’s branch or transaction office convenient for transactions, which is in the commercial bank system having carried out bilateral electronic payment with the State Treasury (except for commercial bank branches or transaction offices in the same commercial bank system with the commercial bank branch or transaction offices where the district-level State Treasury opens its payment account).

5. State Treasuries shall select a commercial bank system to open their specialized collection accounts, which must satisfy the following criteria:

a/ Having high safety rate according to the ratings of the SBV in accordance with Clause 3, Article 4 of the Government’s Decree No. 24/2016/ND-CP of April 5, 2016,prescribing the management of state treasures in 3 consecutive years from the time of selection.

b/ Having a core banking system in Vietnam.

c/ Having an information technology system satisfies the requirements on connection and exchange of information about bilateral electronic payment with the State Treasury, ensuring connection standards at the request of the Central State Treasury; and has the function of state budget collection and remittance at counters and via electronic transaction channels.

d/ Having a state budget revenue collection software integrated with the Core Banking and capable of connecting and exchanging information with the Ministry of Finance s project on modernization of state budget collection.

dd/ Having made written commitments on sufficient equipment, material and technical facilities and human resources to meet the requirements of bilateral electronic payment and coordination in the state budget revenue collection with the State Treasury.

e/ Coordinating with the State Treasury in formulating an agreement on the process of organizing the coordination of state budget revenue collection and bilateral electronic payment; and concurrently committing to fully complying with the principles, processes and responsibilities in the agreement between the two parties.

Article 5.Use of accounts of the State Treasuries

1. State Treasuries shall organize the management of balances on their accounts at banks on the following principles:

a/ For payment accounts and specialized collection accounts of State Treasury transaction bureaus and provincial- and district-level State Treasuries at commercial bank systems, at the end of a transaction day, all balances on these accounts at COT shall, after being successfully compared with commercial banks, be transferred to the general payment account and general specialized collection account of the Central State Treasury in the same commercial bank system, provided these accounts have a zero balance (except for revenues generated on these accounts after COT). In cases offorce majeureevents that cannot be addressed during the day, the comparison and conclusion for transfer shall be made on the next working day.

b/ For general payment accounts and general specialized collection accounts of the Central State Treasury at commercial bank systems, at the end of a transaction day, all balances on these accounts shall, after having received finalization numbers from payment accounts and specialized collection accounts, be transferred to general payment accounts of the Central State Treasury at theSBV Operations Center,provided these accounts have a zero balance (except for general payment accounts in foreign currencies in which the SBV has not yet opened its accounts). In cases offorce majeureevents that cannot be addressed during the day, the conclusion for transfer shall be made on the next working day.

c/ The Central State Treasury’s general payment accounts opened at theSBV Operations Center always have debit balances at the end of the day.

2. Contents on use of accounts:

a/The Central State Treasury’s general payment accounts opened at theSBV Operations Center shall be used to ensure general payment capacity of the State Treasury units (the Central State Treasury and its transactional bureaus, and provincial- and district-level State Treasuries, if any) via inter-bank electronic payment channels.

Transactions conducted via this account include state treasure revenues and expenditures of the State Treasury transaction bureaus and provincial- and district-level State Treasuries (if any); revenues and expenditures related to the debt management; transactions of managing account balances to ensure solvency of the entire State Treasury system; transactions of using temporarily idle state treasures or dealing with the temporary shortage of the state treasures according to the prescribed regimes, and other transactions (if any) in accordance with law.

b/The Central State Treasury’s general payment accounts opened at headquarters of commercial banks shall be usedto ensure the general payment capacity of the State Treasury transaction bureaus and provincial- and district-level State Treasuries having opened accounts at the same commercial bank system via bilateral electronic payment channels. Transactions conducted via this account includetransactions of transferring state treasures; day-end finalization transactions from payment accounts and specialized collection accounts at commercial banks.

c/ The Central State Treasury’s general specialized collection accounts opened at headquarters of commercial banks shall be usedto conduct day-end finalization transactions fromspecialized collection accounts of provincial- and district-level State Treasuries at the same commercial bank system and day-end transactions of transferring state treasures to the Central State Treasury’s general payment account at theSBV Operations Center.

d/ The State Treasury transaction bureaus’ payment accounts in VND opened at commercial bank branches shall be used to collect state treasure revenues  and pay state treasure expenditures, and revenues and expenditures related to the debt management;transactions to use temporarily idle state treasures or deal with the temporary shortage of the state treasures according to the prescribed regimes, and transactions to transfer state treasures.

dd/Payment accounts in VND of provincial-level State Treasuries opened at foreign bank branches, shall be used to rally state treasure revenues via transfer and in cash; pay state treasure expenditures in cash, and conduct transactions totransfer state treasures.

e/ Foreign-currency payment accounts ofthe State Treasury transaction bureaus and provincial-level State Treasuries at commercial banks shall be used to collect state treasure revenues  and pay state treasure expenditures in foreign currencies.

g/ Payment accounts of district-level State Treasuries opened at commercial banks shall be used to collect state treasure revenues and pay state treasure expenditures; and carry out transactions totransfer state treasures.

h/ Specialized collection accounts of provincial- and district-level State Treasuries opened at commercial banks shall be used to rally state treasure revenues.

3. Regarding payment processes:

a/ The collection, spending, payment and data crosscheck f accounts of the State Treasury units at the SBV must comply with the SBV’s regulations.

b/ The collection, spending, payment and day-end data crosscheck and finalization of accounts of the State Treasury units at commercial banks must comply with the agreement on the process of organizing the coordination of state budget revenue collection and bilateral electronic payment between the Central State Treasury and a commercial bank system.

Article 6.The process of closing or opening the State Treasury’s accounts

1. For the Central State Treasury and its transaction bureaus:

The General Director of the State Treasury shall decide the closing and opening of accounts at banks of the Central State Treasury and its transaction bureaus in accordance with this Circular.

2. For provincial- and district-level State Treasuries:

a/ When wishing to open new or more, or change the place for opening, payment accounts or specialized collection accounts of provincial- and district-level State Treasury offices at banks, the provincial-level State Treasury offices shall send written requests to the central State Treasury, clearly stating the reason for opening or change.

Within 10 working days after receiving a written request of a provincial-level State Treasury office, the central State Treasury shall, based on this Circular, notify in writing approval or disapproval of the provincial-level State Treasury’s request to open new or more or change the place for opening accounts, meeting the requirements on collection of state treasure revenues and payment of state treasure expenditures.

Based on written approval of the Central State Treasury, provincial- and district-level State Treasury offices shall carry out procedures for opening accounts in accordance with the regulations of banks where their accounts are opened.

b/ When wishing to close and finalize an accounts at a bank, a provincial- or district-level State Treasury office shall make a written request and coordinate with the bank where the account is opened to carry out procedures for closing the account in accordance with the regulations of the SBV and commercial bank where the State Treasury opens its accounts; and concurrently report to the Central State Treasury.

Article 7.Tasks and powers of the State Treasury

1. The Central State Treasury shall:

a/ Manage and use accounts in accordance with this Circular so as to implement the payment in a quick, accurate and safe manner.

b/ Organize the management of balances on accounts specified in Clause 2, Article 5 of this Circular, ensuring the solvency of the entire State Treasury system.

c/ Fully exercise the rights and perform the obligations of account owners at banks in accordance with the regulations of the SBV and commercial banks where the State Treasury opens its accounts.

d/ Coordinate with commercial bank systems where accounts are opened in reaching agreement on the process of organizing the coordination in the state budget revenue collection and bilateral electronic payment between the Central State Treasury and commercial bank systems (including the principal contents as guided in the Appendix to this Circular), meeting the payment requirements and ensuring compliance with law.

2.State Treasury transaction bureaus and provincial- and district-level State Treasury offices shall:

a/Manage and use accounts in accordance with this Circular to carry out the payment in a quick, accurate and safe manner; and concurrently facilitate units and individuals in the course of transaction with the State Treasury.

b/ Fully exercise the rights and perform obligations of account owners at banks in accordance with the regulations of the SBV and commercial banks where accounts are opened.

Chapter III

IMPLEMENTATION PROVISIONS

Article 8.Transitional provisions

The State Treasury units (the Central State Treasury and its transaction bureaus and provincial- and district-level State Treasury offices) shall review accounts currently being opened at banks for handling as follows:

1. Accounts that conform with this Circular may continue to be maintained and used.

2. For accounts that do not conform with this Circular, to carry out procedures for finalizing and closing them in accordance with the prescribed regime; and at the same time carry out procedures for opening and using accounts in accordance with this Circular, ensuring the closure of old accounts and opening of new accounts be completed before December 1, 2019.

Article 9.Effect

1. This Circular takes effect on November 01, 2019.

2. The Ministry of Finance’s Circular No. 315/2016/TT-BTC of November 30, 2016, prescribing the management and use of the State Treasury’s accounts opened at the State Bank of Vietnam and commercial banks, and Circular No. 131/2017/TT-BTC of December 15, 2017, amending and supplementing a number of articles of Circular No. 315/2016/TT-BTC, shall cease to be effective on the effective date of this Circular.

3. In the course of implementation, should relevant documents referred to in this Circular be amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

Article 10.Organization of implementation

1. From the effective date of this Circular, State Treasuries will not open payment accounts in VND and foreign currencies at new commercial bank systems other than the systems where their payment accounts have been opened.

2. The State Treasury and related agencies, units, organizations and individuals shall implement this Circular.-

For the Minister of Finance

Deputy Minister

Do Hoang Anh Tuan