Decision No. 498/QD-NHNN dated 17 March 2014 of the State Bank of Vietnam on the maximum interest rate applicable to VND deposits of entities, individuals at credit institutions, foreign bank branches under the Circular no. 07/2014/TT-NHNN dated March 17, 2014

THE STATE BANK OF VIETNAM 

Decision No. 498/QD-NHNN dated 17 March 2014 of the State Bank of Vietnam on the maximum interest rate applicable to VND deposits of entities, individuals at credit institutions, foreign bank branches under the Circular no. 07/2014/TT-NHNN dated March 17, 2014

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

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated 16 June 2010;

Pursuant to the Decree No. 156/2013/ND-CP dated 11 November 2013 of the Government, providing for functions, duties, authorities and organizational structure of the State Bank of Vietnam;

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

Upon proposal of the Director of the Monetary Policy Department;

DECIDES:

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

1. Maximum interest rate applicable to demand deposits and deposits with term of less than one month to be of 1%/annum.

2. Maximum interest rate applicable to deposits with term of one month to less than six months to be of 6%/annum; for People’s credit funds and micro-financial institutions alone, the maximum interest rate applicable to deposits with term of one month to less than six months shall be 6.5%/annum.

Article 2.

1. This Decision shall come into effect from 18 March 2014.

2. For interest rates applicable to term VND deposits of entities, individuals at credit institutions arising prior to the effective date of this Decision shall be implemented until their expiry; in the event where at the ending of the agreed period, the entities, individuals do not come to withdraw their deposits, then the credit institutions shall fix the interest rate applicable to those deposits in line with provisions of this Decision.

Article 3. Director of the State Bank’s Office, Director of Monetary Policy Department, Heads of units of the State Bank of Vietnam, General Managers of State Bank s branches in provinces, cities under the Central Government’s management; Chairman of Board of Directors, Board of Members and General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.

For the Governor of the State Bank of Vietnam

Deputy Governor

Nguyen Dong Tien