Decision No. 1160/2004/QD-NHNN dated September 13, 2004 of the State Bank of Vietnam on the issuance of the regulation on savings deposits

DECISION

ON THE ISSUANCE OF THE REGULATION ON SAVINGS DEPOSITS

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam dated 12 December, 1997 and the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam dated 17 June 2003;
- Pursuant to the Law on Credit Institutions dated 12 December, 1997 and the Law on the amendment, supplement of several Articles of the Law on Credit Institutions dated 15 June 2004;
- Pursuant to the Decree No. 86/2002/ND-CP dated 05 November, 2002 of the Government providing for the function, assignment, authority and organizational structure of the ministries and ministerial level agencies;
- Upon the proposal of the Director of the Monetary Policy Department,

DECIDES:

Article 1.To issue in conjunction with this Decision “the Regulation on savings deposits”

Article 2.This Decision shall be effective from 1 January 2005 and replace following Decisions of the Governor of the State Bank: the Decision No. 30/NH-QD dated 17 March 1989 on the issuance of the Rule on savings, the Decision No. 72/ND-QD dated 31 May 1989 on the supplement to the Rule on savings, the Decision No. 167/QD-NH1 dated 26 August 1993 on the issuance of the Rule on savings deposits maintained in one place but withdrawn in several places, the Decision No. 15/QD-NH1 dated 02 February 1994 on the issuance of the Rule on savings to build dwelling houses; the Decision No. 39/2000/QD-NHNN7 dated 24 January 2000 on the savings regime in foreign currency.

Article 3.For savings deposited prior to the effectiveness of this Decision but still undue, the organizations that have received savings deposits and depositors shall comply with committed agreements until the maturity date of savings deposits or may agree on the implementation of provisions stated in the Regulation on savings deposits issued in conjunction with this Decision.

Article 4.The Director of Administrative Department, Heads of units of the State Bank of Vietnam, General Managers of the State Bank s branches in provinces, cities under the central Government’s management, Chairperson of the Board of Directors and General Directors (Directors) of organizations that receive savings deposit and depositors shall be responsible for the implementation of this Decision.

REGULATION

ON THE SAVINGS DEPOSITS
(issued in conjunction with the Decision No. 1160/2004/QD-NHNN dated 13 September 2004 of the Governor of the State Bank)

Article 1.Governing scope and subjects of application

This Regulation governs activities of receipt and payment of savings deposits in VND and foreign currencies within the territory of Vietnam between the organizations that receive savings deposits and depositors.

Article 2.Organizations receiving savings deposit

1. Credit institutions that are set up and operating in accordance with the Law on Credit Institutions.

2. Other organizations engaging in banking activity which are permitted by the applicable laws to receive savings deposits.

Article 3.Subjects depositing savings

1. Subjects that deposit savings in VND shall be Vietnamese individuals and foreign individuals who are residing and legally operating in Vietnam.

2. Subjects that deposit savings in foreign currency shall be individuals being residents.

Article 4.Scope of savings deposit receipt

1. Commercial banks, development banks, investment banks, policy banks, cooperative banks, people’s credit funds shall be entitled to receive savings deposits from all individuals under various types of term.

2. Non-bank credit institutions shall be entitled to receive savings deposits of the term from 1 year upward from all individuals.

3. For branches of foreign banks, joint-venture banks, credit institutions with 100% foreign owned capital, the scope of savings deposit receipt shall be in compliance with current provisions of the Governor of the State Bank on depositing subjects, deposit terms and maximum level of deposits mobilization.

4. Other organizations engaging in banking activity shall be entitled to receive savings deposit in accordance with provisions stated in their operation licence and other legal documents relating to savings deposit.

5. The receipt of savings deposits in foreign currency shall only be applicable to savings deposit receiving organizations that are permitted to engage in foreign exchange activity and in line with current provisions of the Government and the State Bank on foreign exchange control.

Article 5.Application of international treaty

In case where any international treaty to which the Socialist Republic of Vietnam is a signatory and has acceded, contains provisions other than those stated in this Regulation, they shall be applicable.

Article 6.Interpretation

Terms mentioned in this Regulation shall be construed as follows:

1. Savings deposit is an amount of money of an individual, which is deposited in the account “savings deposit”, certified on a savings card and entitled to an interest in accordance with stipulations made by the savings deposit receiving organization and insured in accordance with provisions of applicable laws on deposit insurance.

2. Depositor is a person, who carries out transactions relating to savings deposit. Depositor may be the owner of a savings deposit, or a co-owner of a savings deposit, or an administrator or a representative under the laws of the owner, the co-owner of a savings deposit.

3. Owner of savings deposit is a person whose name is stated in the savings card.

4. Co-owner of savings deposit consists of at least 2 individuals, whose names are together stated in the savings card.

5. Transactions relating to savings deposit are transactions of depositing, withdrawal of savings and other transactions relating to a savings deposit.

6. Account “savings deposit” is an account under the name of an individual or several individuals and can be used to carry out several payment transactions in accordance with provisions in this Regulation.

7. Savings card is a certificate that confirms the ownership of the savings deposit owner or co-owner for an amount that has been deposited at a savings deposit receiving organization.

8. Non-time savings deposit is the savings deposit that a depositor may withdraw upon his requirement without notice in advance on any working day of the savings deposit receiving organization.

9. Time savings deposit is the savings deposit that a depositor may withdraw only after a certain deposit term according to agreements with the savings deposit receiving organization.

10. Deposit term shall be a time period from the day when the depositor deposits his money at a savings deposit receiving organization until the day on which the savings deposit receiving organization commits to make full payment of principals and interests of the savings deposit.

11. Residents are construed in accordance with provisions stated in current documents of the Government and the State Bank on foreign exchange control.

Article 7.Conditions for carrying out transactions relating to savings deposit

1. Vietnamese individuals who are from the age of full 18 upward, have full civil act capability under applicable provisions of Civil Code, foreign individuals who are living and legally operating in Vietnam, from the age of full 18 upward, have full civil act capability in accordance with applicable provisions of Vietnam’s laws shall be entitled to carry out transactions relating to savings deposit.

2. Vietnamese individuals, foreign individuals who are living and legally operating in Vietnam from the age of full 15 to the age of under 18, but have their own property, which are enough to secure the implementation of their civil obligation under provisions of Civil Code, shall be entitled to carry out transactions relating to savings deposit.

3. Under-age persons, persons who have lost their civil act capability, persons whose civil act capability is limited in accordance with provisions of applicable laws, shall be only entitled to carry out transactions relating to savings deposit through their lawful administrator or representatives.

Article 8.Savings deposit procedures

1. Procedures for the first savings deposit

a. Depositors shall directly perform deposit transactions at a savings deposit receiving organization and present following documents:

- Identity card for depositors, who are Vietnamese individuals;

- Passport, the remaining effective term of which is longer than the deposit term (for immigration cases where visa is not required); passport together with visa with the remaining effective term longer than the deposit term (for immigration cases where visa is required) in respect of depositors, who are foreign individuals;

- Documents proving the status of the lawful administrators and representatives of under-age persons, persons who have lost the civil act capability, persons whose civil act capability is limited in addition to identity card or passport for depositors, who are the lawful administrator or representatives.

b. Depositors shall register their sample signature with the savings deposit receiving organization. In case where the depositors cannot write in any form, the savings deposit receiving organization shall guide the depositors to register their code or special symbol instead of sample signature.

c. Depositors shall complete other procedures stipulated by the savings deposit receiving organization.

d. The savings deposit receiving organization shall carry out procedures of savings receipt, opening of account “savings deposit” and issuance of a savings card to first time depositors after they have completed procedures as mentioned in Point a, b and c Paragraph 1 of this Article.

2. Procedures for following savings deposit:

a. Procedures for savings receipt shall be stipulated by the savings deposit receiving organization in line with its business features, conditions, and management structure to ensure the receipt of savings to be carried out conveniently, accurately and safely in terms of assets.

b. For deposit transactions made on the already issued savings card, the depositor may directly deposit or make the deposit through another person in accordance with provisions of the savings deposit receiving organization.

Article 9.Savings card

Savings card shall consist of following main elements:

- Name of the savings deposit receiving organization; type of money, amount of money; term of deposit; date of deposit; maturity date (for time savings deposit); interest rate; Mode of interest payment; Time for interest payment; place of principals and interests payment.

- Full name and address of owner of savings deposit, of co-owner of savings deposit; Number of Identity card or Passport of the savings deposit owner or co-owner (except for the case where the owner, co-owner of the savings deposit is not old enough to be granted with an identity card or passport).

- Full name, address and number of identity card or passport of the lawful administrator or representative (applicable to only the case where depositor is a lawful administrator or representative).

- Card number, seal, signature of General Director (Director) of the savings deposit receiving organization or of the person authorized by the General Director (Director), signature of transaction official of the savings deposit receiving organization

- Provisions on the ownership transfer, mortgage of savings card at the savings deposit receiving organization; dealing with risks.

- Notice contents, other guidance of the savings deposit receiving organization

Article 10.Co-ownership of savings deposit

Procedures for receipt and payment of savings deposit in case of co-ownership of a savings deposit shall be stipulated by the savings deposit receiving organization in conformity with related legal documents.

Article 11.Use of account “savings deposit”

1. Account “savings deposit” shall not be used to issue cheques and carry out payment transactions except for the case provided for in Paragraph 2 of this Article.

2. Account “savings deposit in VND” of resident can be used to make transfer for the loan payment by the owner or co-owner of savings deposit within the same savings deposit receiving organization; or to make transfer to other accounts of the owner or co-owner at the same savings deposit receiving organization.

Article 12.Place for the receipt and payment of savings deposit

1. For each savings card, the savings deposit receiving organization shall be permitted to receive and make payment of savings at the transaction place where the card is issued or at any other transaction places.

2. In case where the receipt and payment of savings for each savings card is made at several transaction places, the savings deposit receiving organization must satisfy full requirements for material, technical foundation, technology and officers’ professional level to ensure the convenience, accuracy, secrecy and safety of assets for depositors and operational safety for the savings deposit receiving organization.

Article 13.Interest rate and mode of interest payment

1. The savings deposit receiving organization shall stipulate the interest rate applicable to savings deposits in line with market interest rate to ensure effective business activity and safe operations of the savings deposit receiving organization

2. Interest rates applicable to savings deposits shall be stipulated on the monthly basis (30 days) or annual basis (360 days).

3. The mode of interest payment shall be stipulated by the savings deposit receiving organization.

Article 14.Forms of savings deposit

1. Forms of savings deposit, classified by depositing terms, shall include non-time savings deposits and time savings deposits. Specific deposit terms shall be stipulated by the savings deposit receiving organization.

2. Forms of savings deposit, classified by other categories, shall be stipulated by the savings deposit receiving organization.

Article 15.Withdrawal of principal and interest of savings deposit

1. Depositors shall carry out following procedures:

a. To present their savings cards;

b. To hand in the withdrawal order with the same signature as the one that is registered at the savings deposit receiving organization.

c. Vietnamese individuals are required to produce their identity cards. Foreign individuals shall present their effective passports (for those visa requirement is waived); present passports together with effective visa (for cases where visa is required).

d. For the case where depositors are lawful administrators or representatives, depositors shall, in addition to the performance of procedures mentioned in Point a, b and c, Paragraph 1 of this Article, present documents that prove their status as lawful administrators or representatives of under-age persons, persons, who have lost their civil act capacity, persons whose civil act capacity is limited.

e. Depositors shall complete other procedures as stipulated by the savings deposit receiving organization.

2. The savings deposit receiving organization shall stipulate the procedures for payment of savings deposit in line with its business features and conditions to ensure the accurate and safe payment of savings deposit.

3. Currency used for the payment of principal and interest (VND or foreign currency) shall be the currency deposited by depositors. For foreign currency savings deposits, at the requirement of depositors, the savings deposit receiving organization may perform the payment of principal and interest in VND at the rate stipulated by the savings deposit receiving organization. The payment for change foreign currency shall be made in accordance with provisions of the savings deposit receiving organization.

4. For time savings deposit, in case where the maturity date falls on a holiday in accordance with provisions of applicable laws, the payment of principals and interests of savings deposit shall be made on the first following working day.

Article 16.Withdrawal of savings deposits prior to the maturity date

1. Depositors shall be entitled to withdraw savings deposit prior to its maturity date if they have made agreement to such extent with the savings deposit receiving organization when making the deposit and must give notice in advance of their request for the prior-to-maturity withdrawal in accordance with provisions of the savings deposit receiving organization.

2. In case where depositors, who require for the withdrawal of savings deposit before the maturity date, fully satisfy provisions in paragraph 1, Article 16, they shall be entitled to enjoy interests according to provisions of the savings deposit receiving organization and the applicable interest rate shall not be in excess of the current interest rate of demand savings deposit of the savings deposit receiving organization at the maximum.

3. In case where depositors, who require for the withdrawal of savings deposit before the maturity date, fail to fully satisfy provisions in paragraph 1, Article 16, the savings deposit receiving organization may still permit the prior-to-maturity withdrawal. In this case, depositors shall be entitled to enjoy interest in accordance with provision in Paragraph 2, Article 16 but be subject to a fee for the withdrawal prior to maturity in accordance with provisions of the savings deposit receiving organization.

4. Persons, who deposit money at non-bank credit institutions, shall only be entitled to withdraw savings deposits prior to their maturity date for amounts that have been deposited for 1 year upwards.

5. The savings deposit receiving organization shall provide for the minimum time limit depositors must inform in advance their request for the prior-to-maturity withdrawal, the interest rate and the fee level, which is applicable to savings deposits, which are withdrawn prior to the maturity date.

Article 17.Withdrawal of savings deposit under the inheritance

Procedures for the withdrawal of savings deposit under the inheritance shall be stipulated by the savings deposit receiving organization in line with provisions on the inheritance in the Civil Code and related legal documents.

Article 18.Withdrawal of savings deposit under the authorization letter

1. The savings deposit receiving organization shall stipulate required elements of a authorization letter to ensure the interest of savings deposit owner or co-owner and in compliance with related legal documents

2. After verifying the legality, validity of the authorization letter, the savings deposit receiving organization shall base on the authorized content to perform the payment of the savings deposit.

Article 19.The extension of deposit term

Upon the maturity date of the time savings deposit, if a depositor fails to withdraw money and does not have any other requirement, the savings deposit receiving organization may capitalize the interest and extend a new term according to agreements made between the savings deposit receiving organization and the depositor.

Article 20.Transfer of ownership

The savings deposit receiving organization shall stipulate procedures for the transfer of savings card ownership in line with related legal documents.

Article 21.Use of savings card as loan security asset

1. Savings card may be used as a mortgage asset at credit institutions in accordance with provisions of applicable laws on loan security if accepted by those credit institutions.

2. When using the savings card as mortgage asset, the owner or co-owner of the savings deposit must undertake that in case where the debt repayment term expires but he fails to make repayment of debt, the lending credit institution shall have the right to request the savings deposit receiving organization to deduct his savings deposit account to pay for the interest and principal of the loan.

Article 22.The level of fee for the receipt, payment of savings deposit and services relating to the savings deposit.

1. The receipt and payment of savings deposit at the savings deposit receiving organizations shall be made free of charge (except for the case provided for in Paragraph 3, Article 16 of this Decision).

2. For other services relating to the savings deposit, the savings deposit receiving organization shall stipulate fee levels in line with the contents, conditions and mode of its service performance.

Article 23.Dealing with risks

The savings deposit receiving organization shall provide for the treatment in cases where the savings card is wrinkled up, torn, lost and other cases of risk in accordance with provisions of applicable laws, in line with its business features, conditions and ensure legal interests of the owner or co-owner of the savings deposit.

Article 24.Rights of the depositor

1. Depositors shall be entitled to be paid in full the principal, interests of the savings deposit under the agreement made with the savings deposit receiving organization.

2. Depositors being an owner or a co-owner of the savings deposit shall be entitled to transfer the ownership over their savings card, to leave the savings card as an inheritance, to authorize other to carry out withdrawing transactions in accordance with provisions of applicable laws.

3. Depositor being an owner or a co-owner of the savings deposit shall be entitled to use their savings card as the mortgage for borrowing funds in credit institutions if it is accepted by them.

4. Depositor being a lawful administrator, representative shall be entitled to carry out transactions relating to the savings deposit in accordance with provisions in this Regulation and provisions in related legal documents.

Article 25.Responsibilities of Depositors

1. To correctly comply with provisions in this Regulation and agreements as committed with the savings deposit receiving organization.

2. To give notice in advance of the request for the withdrawal prior to the maturity date in accordance with provisions of the savings deposit receiving organization.

3. To timely give notice of the loss of savings card to the savings deposit receiving organization to avoid the abuse and cause of losses to assets.

4. To be responsible for losses caused by the failure to timely declare the loss of the savings card to the savings deposit receiving organization.

Article 26.Rights of the savings deposit receiving organization

1. To be entitled to refuse the receipt and payment of savings deposits if depositors fail to correctly comply with provisions in this Regulation and agreements, which they have committed to the savings deposit receiving organization.

2. To be entitled to refuse the payment of savings deposits against the savings card that has been misused but not due to the fault of the savings deposit receiving organization

Article 27.Responsibilities of the savings deposit receiving organization

1. Based on this Regulation and related legal documents, a savings deposit receiving organization shall issue and publicly announce provisions on the savings deposit in its system.

2. To receive the savings deposit from individuals on the date and at the time where transactions are carried out.

3. To fully and timely make payment of the principals, interests of the savings deposits.

4. To publicly announce the interest rate of the savings deposit, mode of interest payment, level of fee applicable to savings deposits, which are withdrawn prior to their maturity date (if any) and the level of fee applicable to services in relation to the savings deposit at places of receipt, payment of the savings deposit.

5. To keep secret of the savings balance of the owner or co-owner in accordance with provisions of applicable laws and ensure the savings prudence for the owner or co-owner of the savings deposit.

6. To be responsible for damages, violation acts, misusage of savings deposits due to the fault of the savings deposit receiving organization.

7. To be responsible for reporting to the State Bank data relating to the activity of receipt and payment of the savings deposit in accordance with current provisions on the statistic reporting regime.

8. Other organizations, which engage in banking area and are permitted by the laws to receive the savings deposit, shall be responsible for reporting to the State Bank the performance of the savings deposit receipt and payment in accordance with provision of the State Bank.

Article 28.Dealing with violation

Organizations, which and individuals, who violate provisions of this Regulation shall, depending on the nature and the seriousness of violation, be subject to the administrative punishment in the monetary and banking area or prosecuted for criminal liability in accordance with provisions of applicable laws and the material compensation for damages they have caused.

Article 29.Amendment, supplement

The amendment of, supplement to this Regulation shall be decided upon by the Governor of the State Bank