Decision 1607/QD-NHNN 2022 on the maximum interest rate applicable to VND deposits

DECISION
On the maximum interest rate applicable to VND deposits of organizations and individuals at credit institutions and foreign bank branches as prescribed in the Circular No. 07/2014/TT-NHNN dated March 17, 2014

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THE GOVERNOR OF THE STATE BANK OF VIETNAM

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

Pursuant to the Law No. 47/2010/QH12 on Credit Institutions dated June 16, 2010 and the Law No. 17/2017/QH14 on Amending and Supplementing a Number of Articles of the Law on Credit Institutions dated November 20, 2017;

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

Pursuant to the Circular No. 07/2014/TT-NHNN dated March 17, 2014 of the Governor of the State Bank providing for the interest rate applicable to VND deposits of organizations and individuals at credit institutions;

At the proposal of the Director of the Monetary Policy Department.

DECIDES:

Article 1. The maximum interest rate applicable to VND deposits of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches as prescribed in the Circular No. 07/2014/TT-NHNN dated March 17, 2014 shall be as follows:

1. The maximum interest rate applicable to demand deposits and deposits with term of less than one month shall be 0.5% per annum.

2. The maximum interest rate applicable to deposits with term of one month to less than six months shall be 5.0%/year; for People’s credit funds and micro-financial institutions, the maximum interest rate applicable to deposits with term of one month to less than six months shall be 5.5% per annum.

Article 2.

1. This Decision takes effect on September 23, 2022 and replaces the Decision No. 1729/QD-NHNN dated September 30, 2020 of the Governor of the State Bank of Vietnam on the maximum interest rate applicable to VND deposits of organizations and individuals at credit institutions and foreign bank branches as prescribed in the Circular No. 07/2014/TT-NHNN dated March 17, 2014.

2. The interest rates applicable to term VND deposits of organizations and individuals at credit institutions and foreign bank branches arising before to the effective date of this Decision shall be implemented until their expiry. In case the agreed time limit expires and the organizations or individuals do not come to withdraw their deposits, the credit institutions or foreign bank branches shall fix the interest rate applicable to those deposits as prescribed in this Decision.

Article 3. Chief of Office, Director of the Monetary Policy Department, Heads of units of the State Bank of Vietnam, the credit institution and foreign bank branches shall be responsible for the implementation of this Decision./.