Decision No. 2415/QD-NHNN 2019 maximum interest rate applicable to VND deposits of organizations and individuals

DECISION

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

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THE GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law on amending and supplementing a number of Articles of the Law on Credit Institutions dated November 20, 2017;

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

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

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

DECIDES

Article 1. Maximum interest rate applicable to VND deposits of organizations (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 March 17, 2014 shall be as follows:

1. Maximum interest rate applicable to call deposits and deposits with term of less than one month to be of 0.8% per annum.

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

Article 2.

1. This Circular shall take effective on November 19, 2019 and replace the Decision No. 2173/QD-NHNN dated October 28, 2014 of the Governor of the State Bank of Vietnam providing for the maximum interest rate applicable to VND deposits of organizations, individuals at credit institutions, foreign bank's branches as prescribed in the Circular No. 07/2014/TT-NHNN dated March 17, 2014.

2. The interest rates applicable to term VND deposits of organizations, individuals at credit institutions arising before 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 organizations, 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./.