Decision No. 448/2000/QD-NHNN2 dated October 20, 2000 of the State Bank of Vietnam issuing the regulation on the collection of via-bank payment service charges

 DECISION

ISSUING THE REGULATION ON THE COLLECTION OF VIA-BANK PAYMENT SERVICE CHARGES

THE STATE BANK GOVERNOR

Pursuant to Vietnam State Bank Law No. 01/1997/QH10; Credit Institutions Law No. 02/1997/QH10 of December 12, 1997;
Pursuant to the Government’s Decree No. 15/CP of March 2, 1993 on the tasks, powers and State management responsibilities of the ministries and ministerial-level agencies;
In order to enable the banks to acquire funding to cover expenses for the provision of payment services to their customers and contribute to developing and diversifying forms of via-bank payment service;
At the proposal of the director of the Accounting and Finance Department,

DECIDES:

Article 1.- To issue together with this Decision the Regulation on the collection of via-bank payment service charges.

Article 2.- This Decision takes effect from December 1st, 2000 in replacement of the State Bank Governor’s Decision No. 162/QD-NH2 of August 19, 1993 on the collection of via-bank payment service charges and Decision No. 297/QD-NH2 of September 9, 1997 on the collection of the charge for cash withdrawal by credit cards. All previous regulations of the State Bank on the collection of payment service charges, which are contrary to this Decision, are hereby annulled.

Article 3.- The director of the State Bank’s Office, the director of the Accounting and Finance Department, the chief inspector of the State Bank, the heads of the concerned units under the State Bank, the directors of the State Bank’s branches in the provinces and centrally-run cities and the general directors (directors) of credit institutions shall have to implement this Decision.

REGULATION

ON THE COLLECTION OF VIA-BANK PAYMENT SERVICE CHARGES
(Issued together with Decision No. 448/2000/QD-NHNN2 of October 20, 2000 of the State Bank Governor)

I. GENERAL PROVISIONS

Article 1.- Objects and scope of application

1. This Regulation applies to the collection of payment service charges by the State Bank and by the credit institutions operating in the Vietnamese territory and permitted by the State Bank to provide payment services.

2. The collection of payment service charges in the payment relations between the State Bank, the credit institutions permitted to provide international payment services and organizations, individuals operating outside the Vietnamese territory shall comply with the international rules and practices if such rules and practices are not contrary to the laws of Vietnam.

Article 2.- Interpretation of terms

In this Regulation, the following terms shall be construed as follows:

1. Banks mean the State Bank and the credit institutions operating in the Vietnamese territory and permitted by the State Bank to provide payment services.

2. Customers mean organizations or individuals that have direct transactions with the banks regarding payment and transfer of money via such banks according to current provisions of law.

3. Via-bank payment services (referred to as payment services for short) mean operations performed by the banks at the customers’ requests in order to directly serve the payment and transfer of their money via such banks according to the State Bank’s current regulations.

4. Payment service charges mean sums of money collected by the banks from the customers using payment services, prices or charges for provision of payment services, exclusive of value added tax.

Article 3.- The scope of and competence to set the payment service charge levels

1. The State Bank Governor shall set:

a/ The levels of payment service charge collected by the State Bank in payment transactions with credit institutions and State treasuries. These charge levels shall be only applicable to the credit institutions and State treasuries (transaction offices, branches) that open their accounts at the State Bank and have direct payment transactions with the State Bank.

b/ The charge levels for a number of payment services provided by the credit institutions to their customers in cases of necessity for certain purposes in order to realize the State’s policies and manage the banking operations.

2. The general directors (directors) of the credit institutions shall set the charge levels for each specific payment service provided to customers (except the payment services with the charge levels already fixed by the State Bank Governor) compatible with the content, conditions and mode of provision of such services by their institutions.

Article 4.- Before applying the tables of payment service charge levels, the credit institutions shall send them together with the criteria of content, conditions and mode of service provision to the State Bank (the Accounting and Finance Department and the State Bank’s Inspectorate) for monitoring and at the same time publicly post them up at the transaction places for customers’ awareness.

Article 5.-

1. The banks shall only collect charges at the levels in the table of payment service charge levels already posted up, must not collect any other sums of money for the provision of payment services, except for the case prescribed in Clause 2 of this Article.

2. Where customers transfer money by telegraph, telex or via the SWIFT system for payment to foreign parties or request to send vouchers within the country or abroad by registered mail via express mail service companies, the banks may collect also telegraph charges, postage or express mail service charges at the rates set by the providers of these services.

3. The banks shall not refund the collected payment service charges in cases where the payment services are cancelled at the customers’ requests or cannot be fulfilled due to errors or incidents not caused by the banks and the banks have dealt with such errors or incidents according to their prescribed responsibility.

II. SPECIFIC PROVISIONS

Article 6.- Types of payment services for which the banks are allowed to collect service charges

1. Providing payment instruments, including checks, bank cards, proxy of collection, proxy of payment and other payment instruments used for conducting via-bank payment transactions according to the current payment regimes.

2. Domestic payment services for customers, including:

- Payment service for customers with accounts opened at other banks’ units (transaction offices, branches);

- Transfer of budgetary grants, capital transfer;

- Transfer of money to other banks’ units for use;

- Payment of wages into accounts;

- Requests to cancel or modify money transfers;

- Domestic entrusted collection and payment;

- Other domestic payment services for customers in compliance with current provisions of law.

3. International payment services for customers, including:

a/ Transfer of money abroad (including transfer of money abroad for payment of letters of credit payable on demand or subject to deferred payment);

b/ Receipt of money transferred from abroad;

c/ Entrusted collection and payment with foreign countries;

- Entrusted collection by foreign countries, including receipt, processing and sending of vouchers abroad for entrusted collection, and payment of the entrusted collection results;

- Cancellation of entrusted collection at the requests of domestic entrustors, being either individuals or organizations;

- Entrusted collection for foreign countries;

- Converting traveler’s checks into foreign currencies in cash.

d/ Other payment services with foreign countries, which the banks are permitted to provide according to the regulations of the State Bank.

Article 7.- Cases where the banks are not allowed to collect payment service charges

1. Sums paid directly between the customers and the banks where they open accounts for payment of debts, interests, service charges, payment for purchase of print papers or payment instruments.

2. Sums borrowed or repaid by credit institutions when participating in the inter-bank market.

Article 8.- Calculation and collection of value added tax upon collection of payment service charges

1. The State Bank shall not calculate and collect value added tax when collecting payment service charges.

2. The credit institutions may calculate and add up value added tax when collecting payment service charges according to current regulations of the Ministry of Finance.

Article 9.- Units collecting and paying payment service charges

1. For the service of supplying payment instruments, the banks that supply (sell) payment instruments shall collect service charges from customers wishing to use such instruments.

2. For domestic payment services for customers:

a/ For payment and transfer of money by proxy of payment, credit transfer or cash payment orders, payment checks for transfer: the banks serving the money transferors shall collect payment service charges from the customers being the money transferors.

b/ For payment in check or proxy of collection: the banks serving the payers shall collect payment service charges from the customers being payers; for debt transfer orders, the banks serving the order issuers shall collect payment service charges from the customers being the order issuers.

c/ Clearing payment in the same province or centrally-run city and the electronic clearing payment zone: The State Bank assuming the prime responsibility for clearing payment shall collect charges from the paying member banks;

d/ Domestic entrusted collection service for checks, proxy of collection, domestically-issued and -paid negotiable instruments: The banks serving the beneficiaries (entrusted collectors) or the banks serving the payees shall collect service charges from individuals or units that submit checks, proxy of collection or negotiable instruments for entrusted collection.

3. For international payment services for customers:

a/ The banks serving the parties transferring money abroad shall collect money transfer service charges from the customers being the money transferors;

b/ The banks serving the beneficiaries shall collect payment service charges from the customers being the beneficiaries;

c/ The service of entrusting foreign countries to collect checks, foreign currencies being not up to standards for circulation, document sets for domestic customers: The banks serving the payers or money claimants shall collect entrusted collection service charges from the payers or money claimants for the receipt, processing and sending of vouchers abroad for entrusted collection and for payment of the entrusted collection results;

d/ The service of entrusted collection for foreign countries: The banks serving the payers shall collect charges for this service from the customers being the domestic payers for the receipt and processing of the entrusted collection for foreign countries and for the payment (transfer of money) to foreign countries.

4. For other payment services: The banks may negotiate directly with the customers that wish to use these services in order to determine the units that shall collect and pay payment service charges on the principle of voluntariness and non-affecting of the concerned parties� interests.

Article 10.- Modes of collecting and paying payment service charges between the banks and the customers

1. Between the credit institutions and the customers: The credit institutions may collect payment service charges in two ways:

a/ Collecting charges for each payment service provided by the credit institutions: Applicable to customers that do not have regular transactions with the credit institutions. In this case, the credit institutions shall return immediately the service charge collection vouchers to the paying customers according to current regulations;

b/ Collecting charges periodically under contracts signed between the credit institutions and their customers: At the end of the period agreed upon by the credit institutions and their customers, the credit institutions shall draw up lists of amounts already paid by the customers in the period for use as basis for calculation of the to be-collected service charges, make vouchers on their own for making deductions from the customers’ accounts to collect the payment service charges and send debt notices to the customers. If the customers fail to pay payment service charges to the credit institutions according to the schedule as already agreed upon, they may be fined for late payment according to current payment regulations.

2. Between the State Bank and its customers being credit institutions and State treasuries: Once every month, the State Bank shall make up lists of payments made via the State Bank by the customers having payment transactions in order to calculate the to be-collected service charges, make on their own vouchers for making deductions from the customers’ accounts to collect service charges and send debt notices to the customers according to regulations.

Article 11.- Collection and payment of payment service charges among credit institutions

1. Among the credit institutions’ units of the same system (transaction offices and branches): The collection and payment (regulation) of payment service charges among the credit institutions’ units of the same system shall be stipulated by the general directors (directors) of such credit institutions for their respective systems.

2. The credit institutions may negotiate directly with one another on the collection and payment of payment service charges for payments arising or received directly from one another or through clearing payment organized (sponsored) by the State Bank.

Article 12.- Currencies and vouchers used in the collection of payment service charges

1. Currencies used in the collection of payment service charges

a/ For domestic payment services provided in Vietnam dong: The currency used for paying payment service charges shall be Vietnam dong.

b/ For payment services with foreign countries or domestic payment services permitted to be provided in foreign currencies: Customers may pay charges in the US dollar (USD) or in Vietnam dong (VND) or other foreign currencies as agreed upon with the banks serving them and in compliance with the legislation on foreign exchange management.

2. Vouchers used in the collection of payment service charges: The banks must comply with the current Regulation on accounting vouchers of banks and credit institutions, issued by the State Bank Governor.

a/ The State Bank’s vouchers used in the collection of payment service charges shall not contain tax-related contents;

b/ The credit institutions’ vouchers used in the collection of payment service charges shall comply with the current regulations of the Ministry of Finance on added value invoices and vouchers.

Article 13.- Handling of violations

Organizations and individuals that violate the provisions in this Regulation shall, depending on the nature and seriousness of their violations, be disciplined, administratively handled and, if they cause any damage, pay compensation according to law provisions.

III. IMPLEMENTATION PROVISIONS

Article 14.- Any amendments or supplements to this Regulation shall be decided by the State Bank