Circular 48/2024/TT-NHNN interest rates applicable to Vietnam-dong deposits at credit institutions and foreign bank branches

CIRCULAR

Providing the application of interest rates to Vietnam-dong deposits of organizations and individuals at credit institutions and foreign bank branches^[1]

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

Pursuant to the January 18, 2024 Law on Credit Institutions;

Pursuant to the Government’s Decree No. 102/2022/ND-CP of December 12, 2022, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

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

The Governor of the State Bank of Vietnam (below referred to as the State Bank Governor) promulgates the Circular providing the application of interest rates to Vietnam-dong deposits of organizations and individuals at credit institutions and foreign bank branches.

Article 1. Scope of regulation

1. This Circular provides the application of interest rates to Vietnam-dong deposits of organizations (other than credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches.

2. Deposits include deposits received in the forms specified in Clause 27, Article 4 of the Law on Credit Institutions.

Article 2. Subjects of application

1. Commercial banks, cooperative banks, general finance companies, specialized finance companies, people’s credit funds, microfinance institutions and foreign bank branches (below collectively referred to as credit institutions) operating in Vietnam in accordance with the Law on Credit Institutions.

2. Organizations (other than credit institutions) and individuals that make deposits at credit institutions (below collectively referred to as clients).

Article 3. Interest rates

1. Credit institutions shall apply interest rates to Vietnam-dong deposits of organizations and individuals, which must not exceed the maximum interest rate applicable to demand deposits, deposits with a term short than 1 month, and deposits of a term of between 1 month and below 6 months as decided by the State Bank Governor in each period and to each type of credit institution.

2. Credit institutions shall apply interest rates to Vietnam-dong deposits of a term of 6 months or more of organizations and individuals on the basis of the market capital supply and demand.

3. The maximum interest rates applicable to Vietnam-dong deposits specified in this Circular are inclusive of payments for sales promotion in any form and applicable to the method of term-end interest payment and other interest payment methods that are converted based on the method of term-end interest payment.

4. Credit institutions shall publicly display Vietnam-dong deposit interest rates at lawful transaction offices within their operational networks, and post such interest rates on their websites (if any). When receiving deposits, credit institutions may not offer sales promotion in any form (in cash, interest rate and other forms) in contravention of law.

Article 4. Effect

1. This Circular takes effect on November 20, 2024.

2. This Circular replaces the State Bank Governor’s Circular No. 07/2014/TT-NHNN of March 17, 2014, providing interest rates for Vietnam-dong deposits of organizations and individuals at credit institutions.

3. For agreements on Vietnam-dong deposit interest rates that are made before the effective date of this Circular, credit institutions and clients may continue to implement such agreements until their expiration. In case a client fails to show up for receiving his/her deposits after the agreed period, the concerned credit institution shall apply the deposit interest rate specified in this Circular.

Article 5. Organization of implementation

The Chief of the Office, the Director of the Monetary Policy Department, and heads of units of the State Bank of Vietnam, credit institutions and foreign bank branches shall organize the implementation of this Circular.-

For the State Bank Governor
Deputy Governor
PHAM THANH HA