Decision No. 457/2003/QD-NHNN of May 12, 2003, promulgating the technical process of inter-bank electronic clearing operations

DECISION

ON THE ISSUANCE OF TECHNICAL PROCESS OF INTER-BANK ELECTRONIC CLEARING PAYMENT OPERATION

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12 December, 1997 and the Law on Credit institutions No. 02/1997/QH10 dated 12 December, 1997;
- Pursuant to the Decree No. 86/2002/ND-CP dated 5 November, 2002 of the Government on the functions, assignment, authority and organizational structure of ministries and ministerial level agencies;
- Pursuant to the Decree No. 64/2001/ND-CP dated 20 September, 2001 of the Government on payment activities performed by payment services suppliers;
- Pursuant to the Decision No. 44/2002/QD-TTg dated 21 March, 2002 of the Prime Minister on the use of electronic vouchers as accounting vouchers for accounting and payment of funds by payment services suppliers
- Upon proposals of Director of Finance-Accounting Department;

DECIDES

Article 1.To issue in conjunction with this Decision "Technical process of inter-bank electronic clearing payment operation"

Article 2.This Decision shall be effective after 15 days, from the date of publication in Official Gazette and replace the Decision No. 212/2002/QD-NHNN dated 20 March, 2002 of the Governor of the State Bank on the issuance of the technical process of the inter-bank electronic clearing payment operation.

Article 3.Director of Administration Department, Director of Finance-Accounting Department, Director of Banking Information Technology Department, Director of Operation Department, Heads of units of the State Bank of Vietnam, General Managers of the State Bank branches in provinces, cities under the central Government s management, General Director (Directors) of Payment services suppliers shall be responsible for the implementation of this Decision./.

TECHNICAL PROCESS

OF INTER-BANK ELECTRONIC CLEARING PAYMENT OPERATION
(Issued in conjunction with the Decision No. 457/2003/QD-NHNN dated 12 May, 2003 of the Governor of the State Bank)

Part I

GENERAL PROVISIONS

Article 1. This technical process of inter-bank electronic clearing payment operation shall provide for procedures, sequence of the treatment, control, payment and accounting of transfers between banks, other organizations entitled to carry out payment services (hereinafter referred to as Banks) that participate in the electronic clearing payment organized and chaired by the State Bank.

Article 2.The control, reconciliation and clearing in the inter-bank electronic clearing payment.

The electronic clearing payment between banks shall be performed in accordance with following process: Payment orders and the List of payment orders sent to the leading bank by sending member banks shall be transferred to the leading bank in the electronic clearing payment for control, performance of the clearing, determination of the result of electronic clearing payment performed by each member bank and accounting for the result of electronic clearing payment before their delivery to receiving member banks.

1. The leading bank in the electronic clearing payment (hereinafter referred to as the leading bank) shall be responsible for:

- Receiving and examining payment orders and Lists of payment orders sent to the leading bank by sending member banks.

- Drawing and sending "The table of the electronic clearing payment results" together with payment orders that have been cleared to member banks.

- Drawing and sending "The consolidated table of daily electronic clearing payments" for payment and reconciliation of the daily electronic clearing payment turnover with member banks.

- Settlement of and accounting for the clearing payment results that arise between member banks within a transaction day.

2. Member banks that directly participate in the electronic clearing payment (hereinafter referred to as member banks) shall:

- Draw and send "Payment order", "The list of payment orders sent to the leading bank" as well as receive payment orders and results of the electronic clearing payment sent by the leading bank to timely account for Payment orders and results of the electronic clearing payment.

- Draw and send "Message of confirmation of daily clearing payment results" of each clearing payment session as well as at the end of the day by the time stipulated for the reconciliation and daily settlement of the electronic clearing payment.

Article 3.Documents used in the inter-bank electronic clearing payment.

1. Documents for book-entry in the inter-bank electronic clearing payment shall be payment orders (in paper or in form of electronic documents) and table of the electronic clearing payment results (sample form in Appendix No. 5). Original documents used for preparing payment orders are payment documents in accordance with current regime.

2. Payment documents in paper must be prepared in accordance with the form and in conformity with current Regime issued by the State Bank’s Governor on accounting documents for banks and Credit Institutions.

3. Payment orders in form of electronic documents must meet all data standards provided for by the State Bank and conform to current provisions of the regime of the State Bank s Governor on the preparation, use, control, treatment, maintenance and preservation of electronic documents for banks, Credit Institutions.

Article 4.Debit transfer in the electronic clearing payment.

1. All debit transfers in the electronic clearing payment shall be authorized in advance: Member banks participating in the inter-bank electronic clearing payment must enter into the contract of debit transfer with each other and must make written notice to the leading bank before implementation. Sending member banks shall be entitled to credit in the account of beneficiary person or unit only after receiving banks have completed the debit entry in account of person or unit that receives the order.

2. Member banks that have entered into the contract of debit transfer with each other must take full responsibilities for the implementation of debit transfers in the signed contract while they participate in the electronic clearing payment.

Article 5.Payment principles in the electronic clearing payment:

1. The leading bank shall perform the clearing of payment orders, which have been verified and reconciled with the ones stated in the list of payment orders sent to the leading bank (sample form in Appendix No. 4) and make payment of payable difference - payable clearing payment results of member banks within actual liquidity of member banks at the leading bank.

During the clearing of a clearing payment session as well as during the settlement of daily clearing payment, the leading bank shall freeze the balance of deposit accounts of member banks to ensure the accurate liquidity of member banks.

2. In case where the deposit account of a member bank runs short of liquidity to cover the clearing payment results in the electronic clearing payment session and in the settlement for daily electronic clearing payments it shall be processed as follows:

a. In case where by the time of an electronic clearing payment session, a member bank lacks the liquidity to cover payable amounts from the clearing payment results, the leading bank shall:

- not perform the clearing treatment (reject) of several payment orders (reject Payment orders in accordance with order from low priority to higher priority as provided for in Article 7 of this Process) in order to comply with the principle of payment only within the scope of actual liquidity, the leading bank shall

- Retain payment orders that have not yet been cleared in that electronic clearing payment session for the following electronic clearing payment session in the transaction day (if any), and these orders shall be notified to member banks that lack liquidity.

b. In case where by the time of the daily electronic clearing settlement, that member bank still fails to have sufficient liquidity to pay for payment orders that have not yet been cleared, the leading bank shall cancel these payment orders. In addition, the leading bank shall process this matter in accordance with paragraph 3, Article 12 of the Regulation on the inter-bank electronic clearing payment issued in conjunction with the Decision No. 1557/2001/QD-NHNN dated 14 December, 2001 of the Governor of the State Bank (hereinafter referred to as the Regulation on the inter-bank electronic clearing payment)

Article 6.Transaction time in the electronic clearing payment.

1. The leading bank shall, based on actual situation and needs in the area, stipulated the transaction time of clearing payment sessions as well as the number of electronic clearing payment sessions in a day after the agreement with member banks in the area. But the complete payment shall still be ensured in the transaction day and the data between member banks must be coincident with those of the leading bank.

2. In respect of electronic clearing payment amounts transferred to banks in other than area of province, city, member banks participating in the electronic clearing payment must send payment orders to the leading bank prior to the cut-off time applicable to electronic money transfer stipulated by the State Bank. payment orders sent after this time shall not be accepted for the daily clearing.

3. Member banks participating in the electronic clearing payment shall comply with provisions on the cut-off time applicable to the electronic clearing payment to ensure the clearing, payment and reconciliation in the electronic clearing payment being made conveniently, accurately, timely and in an asset - secured manner.

Article 7.Priority order for processing payment orders in the electronic clearing payment session.

Member banks shall stipulate among themselves priority order for processing payment orders, which are sent for electronic clearing payment. In case where member banks do not provide for the priority order of payment orders, which are sent for electronic clearing payment, the priority order for processing payment orders shall be ranked in accordance with the order of the preparation time of payment orders: payment orders that are drawn first shall be given the priority to pay first, payment orders that are drawn later shall be paid later.

Part II

SPECIFIC PROVISIONS

I. APPLICATION PROCEDURES FOR THE PARTICIPATION IN THE ELECTRONIC CLEARING PAYMENT

Article 8.Application procedures for the participation and approval of member banks to participate in the electronic clearing payment.

1. Member banks that have satisfied conditions for the participation in the electronic clearing payment (in accordance with provisions stated in Article 2 of the Regulation on the electronic clearing payment) must submit to the leading bank following documents:

- An application for the participation in the electronic clearing payment (in accordance with the form in Appendix No. 13).

- A commitment as to the compliance with relevant provisions as a participant in the inter-bank electronic clearing payment.

2. After a bank is approved and recognized as being a member bank by the written acceptance of the leading bank, the Director of the member bank shall issue a letter of introduction of officers (Director or authorized person, the Head of accounting division or authorized person, the clearing payment accountant) who will take part in the technical process of the electronic clearing payment operation, which defines clearly the assignment, responsibility of each officer so introduced in respect of each part of work in the electronic clearing payment. This letter of introduction shall be directly sent to the leading bank.

- Each officer of the member bank who is introduced as participant in the technical process of the inter-bank electronic clearing payment operation shall, depending on the function, assignment of each officer, be provided with a electronic signature and secrecy code by the leading bank (in accordance with provisions stated in Article 9 of the Regulation on the inter-bank electronic clearing payment).

3. The leading bank shall be responsible for making the list of member banks that have recently be admitted as participants in the electronic clearing payment available to relevant member banks 7 days prior to the session for their preparation of electronic clearing payment transactions.

4. Authorized member banks (under the provisions stated in paragraph 2, Article 2 of the Regulation on the inter-bank electronic clearing payment) shall be responsible for making the list of their authorizing member banks available to the leading bank and other member banks for their knowledge and performance of the electronic clearing payment transactions.

II. TREATMENT AND ACCOUNTING PROCESS OF THE ELECTRONIC CLEARING PAYMENT OPERATION AT MEMBER BANKS AND THE LEADING BANK IN THE ELECTRONIC CLEARING PAYMENT

A. AT MEMBER BANKS THAT SEND PAYMENT ORDERS

Article 9.The processing of payment orders sent for clearing payment.

1. Member banks participating in the electronic clearing payment shall be responsible for the processing of all documents relating to the electronic clearing payment:

Upon receipt of payment documents from customers, transaction accountants shall be responsible for verifying the legality, validity of documents. For electronic documents (in case where provisions on the preservation of electronic documents do still not exist); member banks must print (convert) electronic documents into paper, sign and seal in accordance with applicable provisions for the verification, maintenance and preservation.

2. Clearing payment accountants shall be responsible for converting all payment documents (including paper documents, electronic documents) relating to the electronic clearing payment into electronic documents in form of a payment order (in accordance with the form in Appendix No. 1). Payment order shall be prepared for each separate payment document.

3. Based on payment orders drawn and sent to the leading bank in the electronic clearing payment session and Payment orders not yet been cleared in the previous electronic clearing payment session, which are preserved at the leading bank in the transaction day (if any), the clearing payment accountants shall prepare "List of payment orders sent to the leading bank" (form in the Appendix No. 4). At provided time of the electronic clearing payment session, member banks shall transmit the "List of payment orders sent to the leading bank" to the leading bank for its processing of the electronic clearing payment. The list of payment orders sent to the leading bank must be supported by sufficient electronic signatures of related persons who are responsible for the accuracy of data on the List (Director or authorized person, the Head of accounting division or authorized person and clearing payment accountant).

Article 10.Dealing with and accounting for the electronic clearing payment operation.

1. Upon the sending of payment order, the leading bank shall:

- In respect of a credit order, following accounting entries shall be made:

Debit: Appropriate account

Credit: Account "Clearing payment of member bank"

- In respect of a debit order, following accounting entries shall be made:

Debit: Account "Clearing payment of member bank"

Credit: Account "Other receivables"

- Upon receipt of the acceptance notice of the debit transfer from the receiving member bank, the sending member bank shall pay to account by (making a transfer order to debit: the account "Other receivables" and credit: the account of respective customer). The acceptance notice of the debit transfer shall be kept with debit order.

2. In case where a sending member bank receives a notice of the refusal of payment orders and payment orders from a receiving member bank (that have been returned on the following electronic clearing payment session), the sending member bank shall strictly verify and shall, if appropriate:

+ In respect of debit order, based on the returned debit order:

Debit: Account "Other receivables"

Credit: Account "Clearing payment of member bank"

+ In respect of credit order, based on the returned credit order:

Debit: Account "Clearing payment of member bank"

Credit: Appropriate account (that has been deducted for previous transfer)

The sending member bank must provide customers with the refusal notice of payment orders (stating clearly reasons).

- In case of receipt of Payment orders that have been cancelled or returned by the leading bank at the time of the clearing settlement (since the member bank does not have sufficient liquidity to cover these Payment orders), the sending member bank shall process as for the case of receipt of the refusal notice of payment orders and the member bank shall take full responsibilities before customers for this issue.

3. In case where payment orders and the list of payment orders sent to the leading bank have not yet been sent to the leading bank in the session due to technical breakdown of information transmission or other objective reasons, the sending member bank shall:

+ Take the fastest measures for overcoming the breakdown, simultaneously inform the leading bank and relevant member banks to temporarily stop sending payment orders to this member bank and must draw "Minutes on technical breakdown in the electronic clearing payment" (form in Appendix No. 11). The member bank shall, when the connection is set up, inform the leading bank and relevant member banks to carry out the regular payment.

+ When the communication network stops operation due to any reason, member banks that have lost contact shall be entitled to carry out the direct delivery and receipt with the leading bank of magnetic tapes, discs which contain payment orders, list of payment orders sent to the leading bank and the table of the electronic clearing payment results (form in Appendix No. 5). Upon the delivery and receipt of magnetic tapes and discs that contain payment orders and the list of payment orders sent to the leading bank, member banks must print "List of payment orders sent to the leading bank" into paper to submit to the leading bank. The list must be supported by seals, signatures of related persons who are responsible for the accuracy of data in the magnetic tapes and discs (Director or authorized person, Head of accounting division or authorized person and clearing payment accountant).

B. AT THE MEMBER BANKS THAT RECEIVE PAYMENT ORDERS AND THE TABLE OF THE ELECTRONIC CLEARING PAYMENT RESULTS FROM THE LEADING BANK.

Article 11.The treatment and accounting process of payment orders and the results of the electronic clearing payment.

1. The control of payment orders and lists in the clearing payment sent to by the leading bank:

a. On receipt of payment orders and the Table of the electronic clearing payment results (form in Appendix No. 5) from the leading bank, controllers of member banks must use their own code and the program to verify, control the electronic signatures and secrecy codes of the leading bank (hereinafter referred to as program) to determine the correctness, accuracy of the payment orders and the table of the clearing payment results, and transmit electronic data of payments orders and the table of the clearing payment results through computer network to the clearing payment accountant for further processing.

b. The clearing payment accountant shall be responsible to carefully verify and reconcile all elements of payment orders and the Table of the clearing payment results to determine:

+ Whether the payment orders and the table of the clearing payment results are sent by the leading bank or not.

+ The validity and accuracy of elements of the payment orders and the table of the clearing payment results (Whether debit orders are supported by the Contract of debit transfer or not.)

+ Whether the content is doubtful or not.

+ To verify, reconcile elements and the total of received payment orders with elements and the total of payment orders that have been listed at section B in the table of the clearing payment results (Order No., date of issue of order, symbols of documents, code of sending bank, code of receiving bank, codes of documents and content of operation types and amount of money), in case of excess, deficiency or mistake, the treatment shall be made in accordance with provisions stated in Article 23 of this Process.

+ To verify, reconcile again the list of payment orders sent to the leading bank (database at member banks) with payment orders sent by their own bank that have been cleared at the section A of the table of the clearing payment results and with payment orders that have not yet been cleared (if any, at the section D of the table of the clearing payment results), in case of excess, deficiency or mistake, the verification shall be immediately made with the leading bank and the treatment shall be made in accordance with provisions stated in Article 21 of this Process.

+ Member banks must reexamine the results of the electronic clearing payment.

- When provisions on maintenance, preservation of electronic documents do not yet exist, clearing payment accountants must print Payment orders together with the Table of electronic clearing payment results into paper (ensure the sufficiency of necessary sheets for accounting, delivering to customers and preservation), sign, seal in accordance with applicable provisions for the verification, maintenance and preservation of documents.

- After the control, reconciliation, if no error occurs, the clearing payment accountant shall transmit electronic data of Payment orders through computer network or transfer printed Payment orders to relevant accounting division (transaction accountants) for further treatment. Simultaneously, the clearing payment accountant shall draw and send immediately a message of confirmation of the clearing payment results in the session (in accordance with the form in Appendix No. 7) to the leading bank. The message of confirmation of the clearing payment results of each session as well as of transaction day must be supported by sufficient signatures of relevant persons who are responsible for the accuracy of the clearing payment results (Director or authorized person, Head of accounting division or authorized person and clearing payment accountant)

c. At the transaction accounting division: Accountants shall reconcile and verify again before accounting, making payment to customers, any error that is discovered shall be processed in accordance with Article 23 of this Process.

2. The performance of accounting:

a. Based on the table of the electronic clearing payment results sent by the leading bank:

- If the difference in the clearing payment is a payable amount:

Debit: Account "Clearing payment of member bank"

Credit: Account "Deposit" at the leading bank

- If the difference in the clearing payment is a receivable amount:

Debit: Account "Deposit" at the leading bank

Credit: Account "Clearing payment of member bank"

b. Based on the received and controlled Payment orders:

- In respect of a valid incoming credit order:

Debit: Account "Clearing payment of member bank"

Credit: Appropriate account

- In respect of an incoming debit order:

+ In case of a valid, authorized debit order and there is enough money for payment in the account of customers, the receiving member bank shall:

Debit: Appropriate account

Credit: Account "Clearing payment of member bank"

After that, the acceptance notice of a debit order shall be prepared and sent immediately to the sending member bank (form in Appendix No. 10).

+ In case where a incoming debit order is authorized, but there is not enough money for payment in the account of customers, the receiving member bank shall process as follows:

To immediately notify customers to transfer money to their accounts for the payment of incoming debit order within a stipulated time (not in excess of 2 working hours from the receipt of incoming debit order at the maximum). During the accepted time, if customers accounts are provided with sufficient funds by them for the payment of debit order, the receiving member bank shall make accounting as mentioned above.

After the accepted time, if customers still fail to provide sufficient funds to their accounts for the payment of the debit order, the receiving member bank shall make a notice of the refusal of the debit order. In this case, the accounting shall be made as follows:

In respect of an incoming debit order:

Debit: Account "Receivables"

Credit: Account "Clearing payment of member bank"

Based on the refusal notice to the debit order, a debit order shall be prepared to return to the sending member bank (return at the following clearing payment session):

Debit: Account "Clearing payment of member bank"

Credit: Account "Receivables"

The receiving member bank shall open a book for monitoring incoming debit orders that have not yet been paid to get data for reporting.

3. In respect of refused payment orders, the receiving member bank shall return them to the sending member bank before the time of the electronic clearing settlement. If payment orders are refused after the settlement time, the receiving member bank shall return them to the sending member bank at the first clearing session of the following transaction day.

C. TREATMENT AND ACCOUNTING PROCESS OF THE ELECTRONIC CLEARING PAYMENT OPERATION AT THE LEADING BANK

Article 12.The receipt, control of payment orders and the list of payment orders sent to the leading bank from sending member banks.

1. The leading bank in the electronic clearing payment shall be responsible for: the receipt, control, reconciliation of payment orders and the List of payment orders sent to the leading bank from sending member banks. The entire process of receipt, control, reconciliation shall be automatically performed on the computer. The process shall be specified as follows:

- Upon receipt of payment orders and the list of payment orders sent to the leading bank from sending member banks, the controllers of the leading bank shall use their own secrecy codes to verify, control the validity, correctness of payment orders and the list. All incoming payment orders and lists shall be controlled in accordance with following provisions:

* In respect of payment order:

+ Electronic signatures and secrecy codes on the Payment order

+ Name, address of the banks that send and receive the payment order: Name, code of sending bank, receiving bank (to examine whether the sending bank and receiving bank are member banks participating in the clearing payment or not);

+ Other elements on the payment order such as: Order No., drawing date of the order, order code and amount of money;

+ For debit order: to examine the contract of debit transfer between these member banks;

* In respect of the list of payment orders sent to the leading bank:

+ Electronic signatures and secrecy codes on the List;

+ Name, address of the bank that sends the List: Name, code of sending bank and receiving bank.

+ Other elements of the list such as: List No., drawing date of the list, total amount of money.

* To verify, reconcile elements of payment orders and total of payment orders with elements and total of payment orders that have been listed in the list of payment orders sent to the leading bank (Order No., drawing date of the order, code of the order, code of the sending bank, of the receiving bank, amount of money), which the leading bank has already received to determine whether there is any error, mistake, excess or deficiency of payment orders or not.

2. In case of discovering any error on payment orders and the list of payment orders sent to the leading bank, the leading bank shall make an immediate verification with the sending bank for errors and proceed with the treatment in accordance with provisions at Article 22 of this Process.

Article 13.The preparation of the table of the electronic clearing payment results and the consideration of the liquidity of each member bank:

1. If there is no error in payment orders and the list of payment orders sent to the leading bank that have been controlled, the leading bank shall:

Draw "The table of the electronic clearing payment results" (form in the Appendix No. 5) to determine the receivable, payable amount of each member bank in the electronic clearing payment session.

2. The liquidity of each member bank shall be examined by making comparison between the balance on the deposit account of each member bank at the leading bank (that has been fixed by the leading bank at the time of clearing) with payable amount of that member bank in the clearing payment session. If the liquidity of a member bank is not sufficient to cover the payable difference, the leading bank shall notify that member bank of its illiquidity and deal with it in accordance with provisions at paragraph 2, Article 5 of this Process.

- The leading bank must verify again the accuracy of the clearing payment results in the session by drawing " The consolidated table on the examination of the electronic clearing payment results" (form in Appendix No. 6). If correct, the leading bank shall account for the receivable, payable amount in the electronic clearing payment session. If incorrect, the leading bank shall recalculate the clearing payment results.

3. Only after the completion of the payment and accounting of the electronic clearing payment results, the leading bank shall transmit payment orders, the table of the electronic clearing payment results, the list of payment orders that have not yet been cleared to the relevant member banks. At this time, the leading bank shall also release the liquidity of member banks.

Article 14.The accounting of the electronic clearing payment results at the leading bank.

1. In case where the member bank must pay:

- Based on the table of the electronic clearing payment results, the leading bank shall:

Debit: Account "Deposit payable by the member bank"

Credit: Account "Clearing payment of the leading bank"

2. In case where the member bank is entitled to receive:

- Based on the table of the electronic clearing payment results, the leading bank shall:

Debit: Account "Clearing payment of the leading bank"

Credit: Account "Deposit receivable by the member bank"

3. After the completion of the accounting of amounts actually payable or receivable by the member bank in the electronic clearing payment session in accordance with the table of the clearing payment results, the balance of the clearing payment account of the leading bank must be zero.

4. Dealing with errors and technical breakdown:

a. In case where errors are discovered before the electronic clearing performance: If any error is discovered when controlling, the leading bank shall immediately verify with the sending member bank to determine the reasons and take appropriate measures for solution, ensure the security of assets and of the system. Errors shall be dealt with as follows:

- If errors are caused by technical failure, the leading bank shall be entitled to cancel the incorrect Payment order, or incorrect list and request the sending member bank to send the correct Payment orders and correct list for replacement.

- If any Payment order, list is discovered to be faked or suspected to be faked or impermissibly assessed by the strange information, the leading bank shall draw a minutes and immediately take necessary preventive measures and notify relevant units for coordination and prevention.

b. If due to the technical breakdown or failure of information transmission to an daily electronic clearing payment session, any member bank can not transmit Payment orders and the "list of payment orders sent to the leading bank" to the leading bank, the leading bank shall only carry out the clearing for member banks that are not affected. Payment orders of unaffected member banks with member banks that are affected by the breakdown shall be retained by the leading bank to deal with at the following clearing payment session (if any and if the breakdown is overcome) or shall be returned to member banks.

c. After the completion of the electronic clearing payment, if the leading bank can not transmit payment orders, the table of the clearing payment results in the electronic clearing payment session to the related member banks due to the technical breakdown of information transmission, the leading bank shall deal with as follows:

- The leading bank must look for the fastest measure for overcoming the breakdown, at the same time, notify all member banks and draw "Minutes on the technical breakdown in the electronic clearing payment". When the technical breakdown of information transmission is overcome, the leading bank shall immediately transmit the Payment orders and the table of the clearing payment results to the related member banks.

- In case of breakdown, failure of correspondence due to any reason, the member banks may proceed to the leading bank for the delivery and receipt of magnetic tapes, discs, which contain payment orders and the Table of the electronic clearing payment results. On delivery and receipt of magnetic tapes and discs containing payment orders and the Table of the electronic clearing payment with member banks, the leading bank must print "the table of clearing payment results" into paper. The Table must be supported by sufficient seals and signatures of related persons who are responsible for the accuracy of data on the magnetic tapes and discs.

d. In case where the leading bank can not perform the clearing payment session due to the technical breakdown or failure of information transmission, the leading bank shall be permitted to postpone the clearing payment session until the breakdown is overcome. However, the clearing payment session shall not be delayed to the following transaction day and the delay of a clearing payment session must be notified to member banks for knowledge. If the technical breakdown or failure of information transmission can not be overcome within the day, the leading bank shall be permitted to apply the method of paper clearing payment (in accordance with current provisions of the State Bank of Vietnam)

III. VERIFICATION, RECONCILIATION IN THE ELECTRONIC CLEARING PAYMENT

Article 15.The preparation and sending of the consolidated table of daily electronic clearing payment turnover:

- The leading bank must complete the preparation of the consolidated table of daily electronic clearing payments (during the clearing payment session preceding the settlement session) and send (transmit) it to member banks within the day of the electronic clearing payment (except for case of force damages due to technical breakdown of information transmission).

- The consolidated table of daily electronic clearing payments of the leading bank shall be designed and drawn in accordance with the form in Appendix No. 8 and be preserved as for accounting reports of banks.

- Member banks must implement sufficiently and correctly technical operation steps to define the turnover of daily electronic clearing payment accurately, promptly in accordance with applicable provisions.

Article 16.The reconciliation of the electronic clearing payment turnover at the end of the day.

1. In principle, entire turnover of the electronic clearing payment arising in a transaction day between member banks shall be reconciled by the leading bank in the electronic clearing payment and must be alike (both in total and in details for each session) right in the arising day, except for case of force majeure due to technical breakdown of information transmission.

2. The reconciliation in the electronic clearing payment shall be made for each separate day and before the session of daily electronic clearing settlement. In case of technical breakdown of information transmission that makes the daily reconciliation in accordance with provisions impossible, the reconciliation shall be permitted to last to the following transaction day when the breakdown is completely overcome. The reconciliation shall, however, reflect the electronic clearing payments for the day when they occurred, despite the fact that it is performed in the following transaction day.

3. The reconciliation of the daily electronic clearing payments:

On receipt of "The consolidated table of electronic clearing payments" from the leading bank, member banks shall reconcile all receivable, payable accounts and the amount actually received or paid by their own banks (with the data that have been entered into the account "Clearing payment of member bank" and with the table of the clearing payment results of each session in a day). If the data are absolutely alike, member banks shall draw and immediately submit the message of confirmation of the daily electronic clearing payment (form in Appendix No. 7) to the leading bank to carry out the electronic clearing settlement session.

Article 17.The settlement of errors and technical breakdown when reconciling the turnover of the electronic clearing payment.

1. Errors and technical breakdown that can arise on reconciliation of the electronic clearing payment turnover:

+ Member banks fail to send the confirmation on the daily electronic clearing payment.

+ The difference of the electronic clearing payment turnover.

+ Technical breakdown of information transmission.

2. Measures for the settlement of errors:

- When errors are discovered, member banks shall actively make an immediate verification with the leading bank to define the reasons and take appropriate measures for solution.

- Member banks shall coordinate with the leading bank and other relevant member banks to deal with all errors that are worked out through the reconciliation, right in the day discovering errors, except for the case of force majeure due to technical breakdown or information transmission failure.

a. In case where the member bank has not yet sent the message of confirmation of the daily electronic clearing payments:

If by the time of daily electronic clearing settlement session, a member bank still fails to send (transmit) the message of confirmation of the daily electronic clearing payment to the leading bank, the member bank shall immediately transmit it in accordance with the provisions in point 3, Article 16 of this Process (except for the case of technical breakdown or information transmission failure).

b. In case of discovery of any difference of the daily electronic clearing payment turnover between the consolidated table of daily electronic clearing payments sent by the leading bank and the database of a member bank, the member bank shall check entirely payment orders of the electronic clearing payment sessions in the day to define the reasons, draw minutes and settle:

- In case of excess or deficiency of the daily electronic clearing payment turnover (excess or deficiency of payment orders), member banks shall make an immediate verification with the leading bank to take the appropriate measures for solution and shall be responsible for strictly coordination with the leading bank and related units for prompt solution, and for ensuring the security of assets.

- If errors are determined to be due to technical failure, member banks shall be permitted to readjust under the guidance of the leading bank.

3. In case of technical breakdown or information transmission failure:

- By the time of the daily electronic clearing settlement, if the leading bank has not yet received all messages of confirmation on the daily electronic clearing payment from member banks due to technical breakdown or information transmission failure, member banks and the leading bank shall make "Minutes on the technical breakdown in the electronic clearing payment". This minutes shall be attached to the consolidated table of daily electronic clearing payments (that has been printed into paper, signed and sealed) for the supervision. On following transaction day, when the technical breakdown of information transmission has been overcome, member banks shall transmit an immediate message of confirmation of the daily electronic clearing payment to the leading bank to carry out the clearing settlement session.

- The message of confirmation of the daily electronic clearing payment of the day occurring breakdown shall be confirmed and sent separately, shall not be confirmed together with the consolidated table of the clearing payment turnovers of following transaction day(s).

- Due to the technical breakdown or information transmission failure, the member banks may proceed to the leading bank for the delivery of magnetic tapes, discs that contain the message of confirmation of the daily electronic clearing payment and receipt of the results of daily electronic clearing settlement session.

VI. THE SETTLEMENT OF THE CLEARING PAYMENT

Article 18.The settlement of electronic clearing payment:

1. The settlement of the clearing payment is the last processing of the clearing payment in a transaction day after the leading bank has made the complete and accurate reconciliation of entire turnover of daily electronic clearing payment with member banks. The leading bank and member banks participating in the electronic clearing payment must complete the treatment of errors, data differences prior to the settlement time. In case where the leading bank and member banks do not complete the treatment of errors, differences prior to the settlement time, the leading bank may delay the settlement time of the transaction day till the following transaction day and must inform the member banks for knowledge to take appropriate measures for solution. On following transaction day, after the adjustment of all mistakes, the leading bank shall settle the clearing payment but the data shall still reflect the data of the day in which transactions have occured.

2. On settlement of daily electronic clearing payments, the leading bank shall process in accordance with provisions stated in Article 11 of the Regulation on the inter-bank electronic clearing payment.

3. From the cut-off time for payment orders to the settlement time, member banks that lack liquidity, shall take measure to make themselves liquid (taking measures to cover deficiency in electronic clearing payment in accordance with current provisions of the Governor of the State Bank) for the clearing of these payment orders.

- If by the time of daily electronic clearing settlement, a member bank fails to have sufficient liquidity to cover the payment orders, the leading bank shall proceed with the treatment in accordance with point b, paragraph 2, Article 5 of this Process. The leading bank shall open a book for monitoring payment orders that are not cleared due to shortage of liquidity for its reconciliation and reference when necessary.

- After errors have been adjusted, the leading bank shall adjust clearing payment for Payment orders of member banks (including incorrect payment orders that are returned by the member banks, payment orders that are cancelled because of illiquidity, payment orders that are refused for payment and payment orders that are covered by sufficient balance, etc). The leading bank shall carry out the same treatment as in previous clearing payment sessions.

- On receipt of the table of the electronic clearing payment results of the daily settlement session from the leading bank, member banks must verify again, if the data are absolutely alike, they shall draw and submit the message of confirmation of the clearing payment results of the settlement session to the leading bank. At this moment, the leading bank and member banks shall be permitted to preserve the data of the day when the electronic clearing payment arises.

4. Dealing with technical breakdown of information transmission:

- In case of technical breakdown of information transmission that makes the settlement session of the electronic clearing payment impossible to be carried out within the day, that settlement session shall be postponed to the following transaction day, but the data shall reflect in accordance with the data of day in which transaction have occured

- If the leading bank can not perform the settlement session or can not transmit the data to member banks after the completion of the clearing settlement due to the technical breakdown of information transmission, they shall be permitted to pospone the settlement to the following transaction day when the breakdown is overcome. The data shall, however, reflect the transactions of the day where they have occurred despite the fact that the settlement is made in the following transaction day.

- If the leading bank can not send (transmit) the results of the settlement session of daily clearing payment to the member banks because of technical breakdown of information transmission, member banks may proceed to the leading bank for receipt of magnetic tapes, discs that contain the settlement results of the daily electronic clearing payment.

V. ADJUSTMENT OF ERRORS IN THE INTER-BANK ELECTRONIC CLEARING PAYMENT

Article 19.Principles of error adjustment in the inter-bank electronic clearing payment.

1. To ensure the consistency of data between member banks and the leading bank, to ensure the correctness of data reflected in the clearing payment. Errors shall be corrected at the place where they occur. To strictly forbid the arbitrary correction of data, the arbitrary adjustment of errors in the electronic clearing payment.

2. When errors are discovered, measures for adjustment shall be immediately taken to avoid the delay in the payment process. Errors that are discovered after the completion of an electronic clearing payment session shall be corrected at the following clearing payment session. The correction of errors shall comply with principles, methods of error correction by accountants in general and of the electronic clearing payment in particular as stipulated in Article 14 of the Regulation on the electronic clearing payment to ensure the security of assets of banks and customers.

Article 20.The cancellation of a Payment order

The cancellation of a Payment order must comply with provisions stated in article 15 of the Regulation on the electronic clearing payment, specifically as follows:

1. In respect of the cancellation of a Payment order of a customer being an economic organization or individual:

- An authorized debit order shall be cancelled only when customers have paid the amount of money, which they have received, to the member bank that has peformed that electronic clearing payment.

- A credit order shall be cancelled only when the member bank that has received the Payment order has not yet credited to account of customers or has done it, but has recovered this funds.

2. In respect of the cancellation of member banks payment orders: Member banks participating in the electronic clearing payment shall be entitled to cancel Payment orders only in case where they incorrectly draw the payment orders and must comply with following principles:

- Debit orders under a contract shall be cancelled only when member banks where an electronic clearing payment operation is occurred have not yet paid to customers under incorrect orders or paid but have recovered this funds.

- Credit orders shall be cancelled only when member banks that have received incoming payment orders have not yet paid to customers under incorrect orders or paid but have recovered this funds.

3. In respect of a request for cancellation of a credit order, upon receipt of a request for cancellation of a credit order from a member bank, the leading bank shall immediately transmit this cancellation request to receiving member bank for the cancellation of incorrect credit order. The order of cancellation of a debit order shall be processed as in the case of a regular credit order.

Article 21.The adjustment of errors at the sending member bank:

1. The adjustment of errors that are discovered before the clearing:

a. In respect of payment order:

- Adjustment of errors before transmission of payment order to the leading bank.

+ If any error in a payment order is discovered in the process of payment order preparation and the controller has not yet put his electronic signature or has done it, but the order has not yet been sent to the leading bank, the accountant shall be entitled to correct.

- In case where any error is discovered after a payment order has been sent to the leading bank, but it has not yet been cleared, the member bank shall immediately request the leading bank by a message to return the incorrect payment order and send a correct payment order for replacement. The sending member bank shall process the incorrect payment order returned by the leading bank as follows: Draw a minutes on the cancellation of the incorrect payment order which states clearly order code, time, cancellation date of payment order and is supported by signatures of the Head of accounting division, the clearing payment accountant, related transaction accountant. The minutes shall be kept with the cancelled payment order (has been printed) in a separate file for preservation, and the member bank shall draw the correct payment order for sending. The member bank shall not be entitled to reuse the number of the cancelled payment order.

- In case where the leading bank discovers any error in a payment order (due to technical failure) and request the member bank to return, the member bank shall deal with as in the case of an incorrect payment order that is discovered after the controller has inserted his electronic signature.

b. In respect of the list of payment orders sent to the leading bank.

- Adjustment of errors before transmission of "List of payment orders sent to the leading bank" to the leading bank.

+ If any error in the list of payment orders sent to the leading bank is discovered in the process of list preparation and the controller has not yet put his electronic signature or has done it, but the list has not yet been sent to the leading bank, the accountant shall be entitled to correct.

- In case where any error is discovered after the list has been sent to the leading bank, but it has not yet been cleared, the member bank shall immediately request the leading bank by a message to return the incorrect list and send a correct list for replacement. The sending member bank shall process the incorrect list returned by the leading bank as follows: Draw a minutes on the cancellation of the incorrect list which states clearly list No., time, cancellation date of the list and is supported by signatures of the Head of accounting division, the clearing payment accountant. The minutes shall be kept with the cancelled list of payment orders sent to the leading bank (has been printed) in a separate file for preservation, and the member bank shall draw the correct list for sending. The member bank shall not be entitled to reuse the number of the cancelled list.

- In case where the leading bank discovers any error in the list of payment orders sent to the leading bank (due to technical failure) and request the member bank to return, the member bank shall deal with it as in the case of an incorrect list of payment orders sent to the leading bank that is discovered after the controller has inserted his electronic signature.

2. The adjustment of errors that are discovered after the clearing payment:

When discovering any error such as incorrect amount of money (excessive or deficient), the sending member bank shall immediately send a message for verification (or an answer to verification) to the receiving member bank and the leading bank to take timely measures for settlement. The sending member bank shall make a minutes for defining reasons, and personal responsibility clearly and process as follows:

a. In case of deficiency:

- Upon discovery of any deficient transfer of money, the member bank shall make a minutes on the deficient money transfer. The member bank shall, based on the minutes of the deficient transfer of money, draw a supplemental payment order of the deficient amount to send to the leading bank for payment in the following session. The supplemental payment order must state clearly: "Supplemental transfer in accordance with debit (credit) order No. ................. dated .............. the amount that has been transferred .............. " and enclose with the above drawn minutes, then perform following accounting entries:

In respect of an undervalued credit order:

In respect of undervalued Debit order:

- The sending member bank must open a book for monitoring payment orders with errors to support for reporting purpose.

b. In case of excess:

* In respect of an overvalued credit order:

On discovery of any excessive transfer of money, the sending member bank shall, based on the minutes on the excessive transfer, draw a " request for cancellation of a credit order" to cancel the amount excessively transferred and send it to the receiving member bank and the leading bank, and draw at the same time a transfer order for making following entries:

On receipt of a credit order from the receiving member bank that has received the refunding order of the above-mentioned excessive amount (in the following clearing payment session), the sending member bank shall make following entries:

In case where the receiving member bank does not accept the request for cancellation of a credit order for the above excessive amount, because it fails to collect it from customer, the sending member bank shall set up a settlement Committee in accordance with current provisions to determine the responsibility and compensation of the individual who has caused errors.

* In respect of an overvalued debit order:

- Based on the minutes of the excessive transfer of money, the sending member bank shall draw an order of cancellation of a debit order to cancel the amount transferred excessively and account (This cancellation of debit order shall be sent for the clearing payment at the following clearing payment session):

- In case where the payment has been made to customer, but the balance on deposit account of the customer is not sufficient to perform the order of cancellation of a debit order for the excessive amount, the sending member bank shall record into the account "Receivables" (sub-account of individual causing errors), then take all measures for collection of the excessive amount, if the collection fails, the sending member bank shall define the responsibility for the compensation in accordance with provision of current regime.

c. In case of error in Credit and Debit position:

The sending member bank must make a minutes together with a an order of cancellation of a debit order (in respect of a wrong credit order) and a request for cancellation of a credit order (in respect of a wrong Debit order) to cancel entirely the wrong payment order, and draw a correct payment order for sending.

- The adjustment of a credit order wrongly prepared:

+ Entry that should made:

Debit: Appropriate account

Credit: Account "Clearing payment of member bank"

+ Entry that has been made:

Debit: Account "Clearing payment of member bank"

Credit: Appropriate account

+ Now, it shall be adjusted by: preparing an order of cancellation of debit order to send to the leading bank and perform following accounting entries:

 After that, drawing a correct credit order for sending

- The adjustment of a debit order wrongly prepared:

+ Entry that should have been made:

Debit: Account "Clearing payment of member bank"

Credit: Appropriate account

+ Entry that has been made:

Debit: Appropriate account

Credit: Account "Clearing payment of member bank"

+ Now, it shall be adjusted by: drawing a request for cancellation of credit order to send to the receiving member bank and drawing a transfer order and perform following accounting entries

+ After that, drawing a correct debit order for sending

3. In case of discovery of errors between the table of electronic clearing payment results in the session (Payment orders sent by its own bank for the clearing payment that are listed in the table of the electronic clearing payment results) and the database in its own bank, the member bank shall immediately verify with the leading bank to determine the reasons and measures for solution. If errors are caused by external impermissible access, the member bank shall immediately stop the electronic clearing payment activities, and coordinate with the leading bank and notify competent authorities for settlement. The clearing payment activities shall only be resumed after clarification of reasons and after the system is secured.

4. In respect of several other errors such as wrong name, wrong account code of the person who receives the payment order, wrong symbol of vouchers and content of operation types, etc, (errors other than elements subject to control, reconciliation), upon receipt of the verification request from the receiving bank, the sending bank shall response to the verification request immediately.

Article 22.The adjustment of errors at the leading bank

- Upon receipt of payment orders and the lists from the sending member bank, the leading bank shall reconcile and verify in accordance with applicable provisions, if discovering such errors as:

+ Wrong electronic signatures, wrong secrecy code;

+ Error of elements in the payment order and the list of payment orders sent to the ending bank, errors between elements and total of payment orders and elements and total of payment orders listed in the list of payment orders sent to the leading bank in the clearing payment session, the leading bank shall make an immediate verification with the sending member bank to determine the reasons:

* If any error is discovered to be caused by sending member banks, the leading bank shall return the incorrect payment orders, incorrect list to the sending member bank and requests them to send correct payment orders and correct list, in case where errors are discovered before the electronic clearing payment.

* If errors are caused by the external impermissible access, the leading bank shall stop the electronic clearing payment, coordinate with competent authorities for determination of reasons and for taking measures of settlement. The electronic clearing payment shall only be resumed after reasons are clarified and the system is secured.

* In case of wrong secrecy code, wrong electronic signatures, errors of secrecy keys in the electronic clearing payment or erroneous messages due to communicative transmission, the leading bank shall return the entire messages to the sending Bank.

- In case where the leading bank or receiving bank receives a payment order, but it is not sent by the sending bank or by the leading bank, that payment order shall be suspended for determination of reasons. In case where a payment order is faked due to the external access, the leading bank shall coordinate with member bank to deal with the faked payment order and stop the electronic clearing payment activities and notify competent authorities for knowledge. The electronic clearing payment activities shall only be resumed when reasons are clarified and the system is secured.

- If any error is discovered after the electronic clearing payment, the leading bank shall immediately notify the receiving Bank to stop the performance of the erroneous payment order and notify the sending bank to draw a cancellation order and correct errors on the following clearing payment session.

- In case where a payment order gets lost in the transmission, the leading bank shall return that payment order to the receiving bank and state clearly the number of sending time in the payment order and the reasons for the lost to avoid the payment being made several times.

Article 23.The adjustment of errors at the receiving member bank.

1. Upon receipt of payment orders and the lists from the leading bank, the member bank shall control and reconcile in accordance with applicable provisions. If discovering such errors as:

+ Wrong electronic signatures, wrong secrecy codes;

+ Wrong elements of reconciliation between payment orders and the table of the electronic clearing payment results;

In these cases, the receiving member bank shall not be permitted t­o make payment, but make an immediate verification with the leading bank to determine clear reasons and deal with in accordance with applicable provisions:

- To cancel the wrong payment order and to request the leading bank to send the correct payment order for replacement only in case where errors are surely caused by technical failure.

- If any payment order is discovered to be faked or suspected to be faked or impermissibly accessed by strange information, the receiving member bank shall timely inform the leading bank and coordinate to take necessary preventive measures to ensure the security of assets and the system.

- If any element in any payment order is discovered to be incorrect after payment has been made to customers, the receiving member bank shall collect the amount that has been paid or take measures for preventing possible damages from arising and at the same time, make telegraphical report to the leading bank and the sending bank for taking appropriate measures for settlement.

2. When a payment order is discovered to have been sent by the leading bank more than one time or likely to be sent more than one time, the receiving bank shall send a notice of the overlapping payment order to the leading bank.

3. If during the process of verification, reconciliation, the receiving bank discovers any excess or deficiency between payment orders and the table of the electronic clearing payment results or any mistake relating to the payment order of another bank, the receiving member bank shall proceed as follows:

* To make accounting entries in accordance with the payments made by the leading bank.

* After that:

* In case where there is a payment order too many in comparison with the table of the clearing payment results:

The receiving member bank shall not clear the excessive payment orders, but send a message for verification with the leading bank to determine the reasons and take appropriate measures for settlement to ensure the security for assets and the system.

* In case where there is a payment order too few in comparison with the table of the clearing payment results, the receiving member bank shall make an immediate verification with the leading bank, if correct, the leading bank must supplement this Payment order.

* In case where there is a payment order of another bank:

If it is the payment order of a bank that does or does not participate in the clearing payment with it, or if the payment order contains errors that can not be accepted for payment, the receiving member bank shall return this wrong payment order to the sending bank in the following clearing payment session. The forward of the payment order by member banks is absolutely forbidden.

4. In case where the value of a payment order is understated:

Upon receiving a supplemental payment order to transfer the deficient amount from a member bank, the receiving member bank shall reconcile and verify strictly the undervalued payment order and the supplemental payment order, if they are valid, it shall perform the accounting entries as in the case of a regular payment order.

5. In case where the value of a payment order is overstated:

a. In case where the overvalue is discovered before the accounting entry is made to the account of the customer: If a receiving member bank receives a notice or a verifying message from the sending member bank before its receipt of the payment order, the receiving member bank shall open a book for monitoring payments order with errors to take timely measures for settlement.

- Upon its receipt of a payment order from the leading bank, the receiving bank shall verify, reconcile with the notice it has received, if the error notified is confirmed, it shall process as follows:

+ In case of a credit order:

+ In case of a debit order:

Upon receiving a request for cancellation of a credit order for the excessive amount (in case where the credit order is overvalued) or an order of cancellation of a debit order for the excessive amount (in case where the debit order is overvalued) from the sending member bank, the receiving member bank shall process as follows:

- In respect of an overvalued credit order: Based on the request for cancellation of credit order to prepare a credit order to transfer the excessive amount and to record:

- In respect of an overvalued debit order: Based on the order of cancellation of debit order to record:

b. In case of receiving a notice on an excessive transfer of money from the sending member bank after the payment has been made to customers, the receiving member bank shall open a book for monitoring Payment orders with errors and process as follows:

- In respect of an overvalued credit order: On receipt of a request for cancellation of a credit order for the amount that has been excessively paid by the sending member bank, if it is correct after control, the receiving member bank shall process as follows:

+ In case where the balance of customers account is sufficient to collect the amount excessively transferred: Based on the request for cancellation of the credit order, the receiving member bank shall make a credit order to return the excessive amount to the sending member bank in the following clearing payment session:

+ In case where the balance in the customers account is not sufficient to collect, the receiving bank shall open a book for monitoring the unperformed request for cancellation of credit orders and request customers to deposit money to their account to perform this cancellation request. When the required deposit is sufficiently made, the accountant shall delete this request from the monitoring book and draw a credit order for the clearing payment and make accounting entries as guided above.

+ In case where a customer can not make payment or it is impossible to identify a customer, the receiving member bank shall cooperate with local government and law protecting agencies such as the Police, Court, etc to take any possible measure for collection of the funds. If the collection fails to proceed or fully succeed, the receiving bank shall refuse the acceptance of the request for cancellation of the credit order and state clearly the reasons thereof and transfer the collected funds (if any) to the sending bank, and delete the unperformed request for cancellation of the credit order from the monitoring book.

6. If any error in the table of electronic clearing payment results sent by the leading bank is discovered, the receiving member bank shall process as follows:

- Refraining from recording any accounting entry in respect of the electronic clearing payment with errors.

- Sending a verifying message to the leading bank for determination of the reasons of errors:

+ If the reason of errors is determined to be due to technical failure or to the wrong calculation of the leading bank, the receiving member bank shall request the leading bank to send the correct table of the electronic clearing payment results and make the regular accounting entries (after receiving the correct table of the clearing payment results).

+ If the reason of error is determined to be due to the external impermissible access to the system that has distorted the data, the receiving member bank shall cooperate with the leading bank and competent authorities to look for measures of settlement and stop the electronic clearing payment activities. The electronic clearing payment activities shall only be resumed upon clarification of reasons and after other necessary measures for security are taken to prevent any external access from happening.

7. The adjustment of other errors:

a. In respect of a payment order with wrong address of customer (A payment order that has been transmitted correctly to the receiving member bank but nobody receives or the order receiver has account at other bank): the receiving member bank shall record to the account "Other receivables", and draw a payment order to return to the sending member bank with a notice on the refusal of the payment order (stating clearly reasons). The forward of the payment order by member banks are strictly forbidden

b. If such errors as wrong name, wrong account No. of a payment order receiver (correct name but wrong account No. or vice versa), symbol of vouchers, types of operation are discovered:

The receiving member bank shall not perform any accounting entry for the payment order, but verify with the sending bank, and proceed further only after the verification confirms the correctness. The receiving bank shall list errors in the book, which is used to monitor payment orders with errors to support for reference and reconciliation purpose when necessary.

Upon receipt of verification response from the sending bank, the receiving bank shall perform accounting entries in accordance with applicable provisions.

If by the time of electronic clearing payment session, the receiving member bank has not yet received the verification response from the sending member bank, it shall return incorrect payment orders to the sending bank.

Article 24.The cancellation of payment order upon the request of customers.

1. At the sending member bank:

Upon receipt of a request for cancellation of a credit order (in respect of cancellation of a credit order) or an order of cancellation of a debit order (in respect of the cancellation of a debit order) from customers, the sending bank shall verify the validity of the request for cancellation of the credit order or the order of cancellation of the debit order. If they are invalid, it shall return them to customers, if they are valid, it shall process as follows:

1.1. In case of cancellation of a payment order that has not yet been performed (has not yet been sent for the electronic clearing payment):

The sending member bank shall send their customers a notice on the acceptance of the request for cancellation of credit order or order of cancellation of debit order and not perform that Payment order (not perform any accounting entry).

1.2. In case of cancellation of a payment order which has been sent and performed:

- In respect of a request for cancellation of a credit order:

+ Based on the request for cancellation of a credit order from customers, the accountant of electronic clearing payment shall supplement elements of the request for cancellation of credit order (in accordance with the form in Appendix No. 3) and put his electronic signature in the cancellation request.

+ The controller shall control again elements of newly drawn request for cancellation of a credit order with that of customers to ensure the accuracy and correctness. If everything is correct, the controller shall put his electronic signature in the cancellation request and send to the receiving member bank.

The receiving member bank shall record it in the book for monitoring request for cancellation of credit order that has been sent.

Upon receipt of a credit order from the receiving bank for the return of money amount of the cancelled credit order, the sending member bank shall base on the incoming credit order to perform following accounting entries:

Debit: Account "Clearing payment of member bank"

Credit: Appropriate account: (the account that has been debited before)

- In respect of the cancellation of an authorized debit order:

Based on the cancellation order, the sending member bank shall deduct customers account that has been credited before to return to the receiving member bank:

Debit: Appropriate account (the account that has been credited before)

Credit: Account "Clearing payment of member bank"

2. At the receiving member bank:

2.1. In respect of an order of cancellation of a debit order: Upon receipt of a cancellation order from the leading bank, the receiving member bank shall process it as in the case of a regular incoming credit order.

- If any error in a request for cancellation of a credit order is discovered, the receiving member bank shall draw a notice on the refusal of the request for cancellation of the credit order (stating clearly the reasons for the refusal) to return it to the sending member bank and inform the leading bank about the reasons for its refusal.

- Upon receipt of an order of cancellation of an erroneous debit order (This order is received in the clearing payment session), the receiving member bank shall process as in the case of an erroneous credit order.

2.2. If the request for cancellation or the cancellation order is valid, the receiving member bank shall:

a. Cancel a Payment order that has not yet been performed

The receiving member bank shall immediately send the sending member bank a notice on the acceptance of the request for cancellation.

- In respect of a credit order:

+ Based on the incoming credit order (cancelled credit order), following entries shall be made:

Debit: Account "Clearing payment of member bank"

Credit: Account "Other receivables"

+ Based on the request for cancellation to draw a credit order to return to the sending member bank on following clearing session and perform following entries:

Debit: Account "Other receivables"

Credit: Account "Clearing payment of member bank"

- In respect of a debit order:

+ Based on an order of cancellation of an incoming debit order to perform following entries:

Debit: Account "Clearing payment of member bank"

Credit: Appropriate account (that has been credited under the debit order of previous clearing payment session)

b. Cancel a Payment order that has been performed:

- In respect of a request for cancellation of an incoming credit order:

+ If the incoming credit order has been performed, the receiving member bank shall send immediately the request for cancellation to the customer for notice. Only in case where the customer accepts (in writing) or pay cash and draw payment vouchers to deduct his account for refund, the receiving member bank can implement the request for cancellation and draw a credit order for the clearing payment and perform following entries:

Debit: Appropriate account (that has been credited in accordance with the cancelled credit order of previous clearing payment session)

Credit: Account "Clearing payment of member bank"

And then, the receiving bank shall send the notice on the acceptance of the request for cancellation to the sending member bank and the leading bank for their knowledge.

+ In respect of a request for cancellation that is not accepted for refund by customer, the receiving member bank shall draw a notice on the refusal of the request for cancellation (stating clearly the reasons) to send to the sending member bank and the leading bank for their knowledge.

- In respect of an order of cancellation of an incoming debit order:

Based on the order of cancellation of an incoming debit order, the receiving member bank shall:

Debit: Account "Clearing payment of member bank"

Credit: Appropriate account (that has been debited in accordance with the debit order of previous clearing payment session)

Part III.

IMPLEMENTING PROVISIONS

Article 25.Director of Finance-Accounting Department, Chief Inspector shall, within the scope of their function, assignment, responsible for guidance, monitor and control of the performance of the electronic clearing payment operation between banks.

The Director of the Banking Operation Department of the State Bank, General Manager of the State Bank branches in provinces, cities under the central Government s management, General Director (Directors) of Credit Institutions shall be responsible for the organization and guidance on the implementation of this Process in their own units.

Article 26.The Governor of the State Bank shall decide on the amendment, supplement of this Process.

CREDIT ORDER

Order No................ (2)......................... Drawing date ....../........./................ (2)......................

Code of voucher and content of operation type:........................................ (2)............................

Effective date:....................................................................................... (2)............................

Sending member bank:.................... (2) .................. Bank code:............. (1)....... (2)................

Receiving member bank:.................. (2)................... Bank code:............. (1)....... (2)................

________________________________________________________________________________

Payer/transferor:........................................................... (1)....................................................

Address/ Identity card No., Passport No.: ...................... (1)....................................................

Account No.: ............................................................... (1)....................................................

At Bank (The State Treasury): ....................................... (1)....................................................

Payee.......................................................................... (1)....................................................

Address/ Identity card No., Passport No: ....................... (1)....................................................

Account No.: ............................................................... (1)....................................................

At Bank (The State Treasury): ....................................... (1)....................................................

Tax code of tax payer ................................................... (1)....................................................

Budget list of Budget payer ........................................... (1)....................................................

Content: ...................................................................... (1)....................................................

APPENDIX NO. 2

ORDER OF CANCELLATION OF DEBIT ORDER

Order No................ (2)......................... Drawing date ....../........./................ (2)......................

Code of voucher and content of operation type:........................................ (2)............................

Effective date:....................................................................................... (2)............................

Sending member bank:.................... (2) .................. Bank code:............. (1)....... (2)................

Receiving member bank:.................. (2)................... Bank code:............. (1)....... (2)................

________________________________________________________________________________

Sender:........................................................................ (1)....................................................

Address/ Identity card No., Passport No.: ...................... (1)....................................................

Account No.: ............................................................... (1)....................................................

At Bank (The State Treasury): ....................................... (1)....................................................

Receiver:...................................................................... (1)....................................................

Address/ Identity card No., Passport No: ....................... (1)....................................................

Account No.: ............................................................... (1)....................................................

At Bank (The State Treasury): ....................................... (1)....................................................

Tax code of tax payer ................................................... (1)....................................................

Budget list of Budget payer ........................................... (1)....................................................

Content: ............(To cancel the amount of the debit order No.:.........Order code:..............drawing date:...../........., Reasons:..........) ......................................................... (1)....................................................

............................................................................................................................................

Amount in words:.......................................................... (1)....................................................

Note:

            - (1) Elements inserted by transaction accountant

            - (2) Elements inserted by accountant of electronic clearing payment

- (3) Element inserted by controller (Head of accounting division)

- In respect of payment documents with the Treasury, member banks must fully state elements of tax code, Budget list under the list of the budget paying unit.

APPENDIX NO. 3

REQUEST FOR CANCELLATION OF CREDIT ORDER

Drawing date: ...../..../....                                    Number...........

Sending member bank :.......(Bank A)............ Bank code:............................................

Receiving member bank :.....(Bank B)............ Bank code:...........................................

_________________________________________________________________

Pursuant to .......................No.: ......................dated:............./........./...............................

of: ..................................................................................................................................

Address/ Identity card No.: ........................................................................................

Request ..........(Member bank B).......... to cancel the Credit order No........................

Drawn on: ........../....../............ and return it to following address:

Payee: .......................................................................................................................

Address/ Identity card No., Passport No.: ................................................................

Account No.: ...............................................................................................................

At bank (The State Treasury): ..................................................................................

Tax code of tax payer...................................................(1)...........................

Budget list of Budget payer .......................................(1)................................

Reasons for cancellation: ............................................................................................

......................................................................................................................................