Decisions No. 419/QD-NHNN 2020 maximum interest rate applicable to VND deposits

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

-------------

THE GOVERNOR OF THE STATE BANK OF VIETNAM

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

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

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

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

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

DECIDES

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

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

2. The maximum interest rate applicable to deposits with term of one month to less than six months to be of 4.75% 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 5.25% per annum.

Article 2.

1. This Decision takes effect on March 17, 2020 and replaces the Decision No. 2415/QD-NHNN dated November 18, 2019 of the Governor of the State Bank of Vietnam providing the maximum interest rate applicable to VND deposits of organizations and individuals at credit institutions and foreign bank s branches as prescribed in the Circular No. 07/2014/TT-NHNN dated March 17, 2014.

2. For the interest rates applicable to term VND deposits of entities and individuals at credit institutions and foreign bank branches 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 and individuals do not come to withdraw their deposits, then the credit institutions and foreign bank branches shall fix the interest rate applicable to those deposits in line with provisions of this Decision.

Article 3.The Chief 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 and foreign bank branches shall be responsible for the implementation of this Decision./.