Circular No. 01/2012/TT-NHNN on discounting negotiable instruments by the State Bank of Vietnam for credit institutions and foreign bank branches.

CIRCULAR

Regulations on the discounting of negotiable instruments by the State Bank of Vietnam for credit institutions and foreign bank branches

 Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

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

On the basis of The State Bank of Vietnam (hereinafter referred to as the State Bank) hereby stipulates the regulations on the discounting of negotiable instruments of the State Bank for credit institutions and foreign bank branches as follows:

Decree No. These Circulars regulate the implementation of the business of discounting negotiable instruments of the State Bank for credit institutions and foreign bank branches.

a) Banks, non-bank credit institutions, and foreign bank branches;

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

b) Central People's Credit Funds during the period before they are converted into cooperative banks in accordance with the Law on Credit Institutions.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

Negotiable Instruments

are evidence confirming the obligation to repay between the issuer of the negotiable instrument and the holder of the negotiable instrument within a certain period, interest payment conditions, and other conditions.

Article 2. Interpretation of Terms

In this Circular, the following terms shall be understood as follows:

1. Long-term negotiable instruments are negotiable instruments with a term of one year or more from issuance to maturity.

Short-term negotiable instruments are negotiable instruments with a term of less than one year from issuance to maturity.

3. Discounting of negotiable instruments is the business of the State Bank purchasing short-term negotiable instruments still within their payment period from credit institutions and foreign bank branches before their maturity date (hereinafter referred to as discounting).

4. Purchasing negotiable instruments with a short-term period is the act of purchasing negotiable instruments with a term of less than one year.

5. Discounting the entire remaining term of negotiable instruments is the form where the State Bank purchases all negotiable instruments of credit institutions and foreign bank branches at the discount price.

6. Discounting with a term is the form where the State Bank discounts negotiable instruments while requiring credit institutions and foreign bank branches to commit to repurchasing all such negotiable instruments after a certain period before their maturity date. The maximum discounting term is 91 days.

7. Total discount limit is the total amount of funds approved for the discounting business of the State Bank.

8. Discount limit is determined quarterly and is the maximum balance that the State Bank will perform discounting for negotiable instruments for a credit institution or foreign bank branch at any time during the quarter.

9. Discount term is the period from the date when the negotiable instrument is received for discounting by the State Bank to the date when the credit institution or foreign bank branch has the obligation to pay back the money for repurchasing the negotiable instrument from the State Bank and reclaim the negotiable instrument according to the commitment to repurchase it (in the case of discounting with a term) or on the maturity date of the negotiable instrument (in the case of discounting the entire remaining term).

10. Remaining term of the negotiable instrument is the period from the date when the negotiable instrument is received for discounting by the State Bank to its maturity date.

11. Discount rate is the interest rate applied by the State Bank to calculate the amount of payment when performing the discounting of negotiable instruments. The discount rate is determined and announced by the State Bank, consistent with monetary policy objectives in each period.

12. Discount rate is the interest rate applied by the State Bank to calculate the amount of payment when performing discounting of securities. The discount rate is determined and announced by the State Bank, consistent with monetary policy objectives in each period.

Article 3. Objectives and Principles for Implementing Discount Operations

1. The State Bank implements discount operations with credit organizations and foreign bank branches to implement national monetary policy, contributing to promoting economic and social development.

2. Based on the orientation for economic and social development set by the Government and the objectives of national monetary policy during each period, the Governor of the State Bank decides on the sectors that the State Bank prioritizes for discounting for credit organizations and foreign bank branches.

3. Based on the total discount limit and the priority investment credit targets during each period, the State Bank allocates the discount limit for each credit organization and foreign bank branch.

4. Credit organizations and foreign bank branches receiving discounts must use the funds for their intended purposes; upon expiration of the discount period for term discounting, credit organizations and foreign bank branches must reclaim the securities according to the agreement and fully repay the purchase price of the securities to the State Bank.

Article 4. Methods for Implementing Discount Operations

1. Direct transaction method: Credit organizations and foreign bank branches directly transact with the State Bank.

2. Indirect transaction method: Credit organizations and foreign bank branches transact through the interbank market operations transaction system as guided by the State Bank.

Article 5. Issuance of Identification Numbers, Passwords, and Digital Signatures

Credit organizations and foreign bank branches shall be issued identification numbers, passwords, and digital signatures by the State Bank for transaction officers, control officers, and authorized signatories (hereinafter referred to as personnel participating in discount operations) to conduct transactions through the interbank market operations transaction system of the State Bank to ensure confidentiality.

Article 6. Securities Eligible for Discounting

1. Criteria for securities eligible for discounting at the State Bank:

a) Issued in Vietnamese Dong (VND);

b) Permitted for transfer;

c) Legally owned by the credit organization or foreign bank branch requesting discounting;

d) Not issued by the credit organization or foreign bank branch requesting discounting;

đ) The remaining maturity period of the security is a maximum of 91 days for full-term discounting;

e) The remaining maturity period of the security must be longer than the discount period of the State Bank for term discounting.

2. The list of securities eligible for discounting is specified by the Governor of the State Bank during each period.

Article 7. Transaction Date

1. The transaction date in discount operations is a working day.

2. In cases where the maturity date of the discount coincides with a holiday or public holiday, the maturity date of the discount is postponed to the next working day.

Chapter II
SPECIFIC PROVISIONS

Article 8. Conditions for Implementing Discount Operations

Credit organizations and foreign bank branches participating in discount operations must meet the following conditions:

1. They are credit organizations not placed under special supervision.

2. They have no overdue debts with the State Bank at the time of requesting discounting.

3. They have an account opened with the State Bank (Trading Center or State Bank branch authorized to carry out discounting in provinces and centrally-administered cities).

4. They submit a request for notification of the discount limit for securities to the State Bank within the prescribed time as stipulated in Clause 3, Article 9 of this Circular.

5. They possess securities meeting the conditions and included in the list of securities eligible for discounting at the State Bank.

6. In cases of indirect transactions, credit organizations and foreign bank branches must be equipped with adequate computer equipment, connections, and network links to the main server at the State Bank (Trading Center and Information Technology Department).

Article 9. Notification of Discount Limits

1. Based on the objectives of the national monetary policy and the orientation for economic and social development set by the Government for each period, the Governor of the State Bank shall decide the total discount limit for the banking sector that the State Bank prioritizes to provide discounts to credit institutions and foreign bank branches.

2. At the latest by the 15th day of the first month of each quarter, credit institutions and foreign bank branches shall send one set of application documents requesting notification of the discount limit for negotiable instruments via postal service, fax, or directly submit to the State Bank (Credit Department) to serve as the basis for determining and notifying the discount limit for credit institutions and foreign bank branches in that quarter.

3. The application documents for requesting notification of the discount limit include:

a) A request for the State Bank to notify the discount limit according to Form No. 01/NHNN-CK;

b) The most recent balance sheet of the credit institution or foreign bank branch;

c) A list of negotiable instruments eligible for discount at the State Bank according to Form No. 02/NHNN-CK;

4. Based on the application documents for requesting notification of the discount limit submitted by credit institutions and foreign bank branches, at the latest by the 20th day of the first month of each quarter, the State Bank shall allocate and notify the discount limit for credit institutions and foreign bank branches that have requested it according to Form No. 03/NHNN-CK.

5. The State Bank will only allocate and notify the discount limit for credit institutions and foreign bank branches that have submitted their requests for notification of the discount limit to the State Bank within the prescribed time frame.

Article 10. Authority to Sign Documents Participating in Discount Operations

1. The person authorized to sign on behalf of credit institutions and foreign bank branches to approve documents participating in discount operations at the State Bank is one of the following:

a) Chairman of the Board of Directors or Chairman of the Board of Members of the credit institution;

b) General Director (Director) of the credit institution or foreign bank branch.

2. The authorized person specified in Clause 1 of this Article may delegate authority to the Deputy General Director (Deputy Director) to sign documents participating in discount operations at the State Bank in accordance with the provisions of the law and bear responsibility for such delegation. The person delegated does not have the right to further delegate to a third party.

Article 11. Units Implementing Discount Operations at the State Bank

The State Bank conducts discount operations for negotiable instruments for credit institutions and foreign bank branches at the Trading Center. In necessary cases, the Governor of the State Bank may delegate authority to the Branch Manager of the State Bank to implement discount operations for credit institutions and foreign bank branches whose main offices are located in the area.

Article 12. Transaction Representatives of Credit Institutions and Foreign Bank Branches

Credit institutions and foreign bank branches conduct transactions with the State Bank through their main office (hereinafter referred to as the transaction representative) based on the overall needs of the credit institution or foreign bank branch.

In the case where a foreign bank has two or more branches operating in Vietnam, the State Bank will only transact with one branch representing all branches of that foreign bank in Vietnam based on the overall needs of those branches.

Article 13. Procedures for performing discounting operations

1. Procedures for performing discounting operations through direct method

Credit institutions and foreign bank branches that wish to discount negotiable instruments through their transaction representatives shall send one discount request form (Form No. 05/NHNN-CK) via postal service, fax, or submit directly to the State Bank of Vietnam (Transaction Department or authorized State Bank branch).

Based on the discount request form and unused discount limit of credit institutions and foreign bank branches, the State Bank of Vietnam (Transaction Department or authorized State Bank branch) will consider and decide, then notify acceptance (Form No. 07A/NHNN-CK) or non-acceptance (Form No. 07B/NHNN-CK) within one working day from the date of receipt of the discount request form of credit institutions and foreign bank branches.

2. Procedures for performing discounting operations through indirect method.

a) Credit institutions and foreign bank branches, through their transaction representatives, send the Application Form for Participation in Discounting Operations (Form 04A-NHNN-CK) via postal service, fax, or submit directly to the State Bank of Vietnam (Transaction Department or authorized State Bank branch and Information Technology Department, one application form for each unit) to be granted access code, electronic signature code, and permissions in discounting transactions.

In case there is a change in personnel participating in discounting operations with the State Bank of Vietnam, upon the effective date of the decision to replace staff of credit institutions and foreign bank branches, such institutions must send the Request for Issuance and Revocation of Access Code and Electronic Signature Code for Participation in Discounting Operations (Form No. 04B/NHNN-CK) via postal service, fax, or submit directly to the State Bank of Vietnam (Transaction Department or authorized State Bank branch and Information Technology Department, one application form for each unit) to be granted access code, electronic signature code, and permissions in discounting transactions.

Within two working days following the date of receiving complete documents as prescribed, the State Bank of Vietnam (Transaction Department or authorized State Bank branch and Information Technology Department) will carry out the issuance and revocation of access code and electronic signature code for personnel participating in discounting operations of credit institutions and foreign bank branches.

b) Credit institutions and foreign bank branches that wish to discount negotiable instruments through their transaction representatives shall send one discount request form (Form No. 05/NHNN-CK) via the information network system to the State Bank of Vietnam (Transaction Department or authorized State Bank branch).

c) Based on the discount request form and unused discount limit of credit institutions and foreign bank branches, the State Bank of Vietnam will consider and decide, then notify acceptance (Form No. 07A/NHNN-CK) or non-acceptance (Form No. 07B/NHNN-CK) within one working day from the date of receipt of the discount request form of credit institutions and foreign bank branches.

3. In cases where at the time of announcing the discount limit, the balance of discounting of credit institutions and foreign bank branches at the State Bank of Vietnam exceeds the announced discount limit, the term discounting transactions already performed previously will still be carried out according to the commitment. The State Bank of Vietnam will only continue discounting for credit institutions and foreign bank branches when the discounting balance is less than the announced discount limit of credit institutions and foreign bank branches.

Article 14. Delivery and Return of Negotiable Instruments Subject to Discounting

1. Within a maximum period of 15 working days from the date the State Bank of Vietnam issues a notice accepting discounting, the credit institution or foreign bank branch requesting discounting shall carry out procedures to transfer ownership and deliver negotiable instruments to the State Bank of Vietnam.

2. Within one working day after the credit institution or foreign bank branch has completed all procedures for transferring ownership and submitting negotiable instruments to the State Bank of Vietnam, the State Bank of Vietnam shall transfer funds to the credit institution or foreign bank branch.

In the case of negotiable instruments with a term, within two working days following the date the State Bank of Vietnam issues a notice accepting discounting, the credit institution or foreign bank branch must send one Commitment to Repurchase Negotiable Instruments form (Form No. 06/NHNN-CK) back to the State Bank of Vietnam (Trading Department or authorized State Bank branch). Within one working day after the credit institution or foreign bank branch has completed all procedures for transferring ownership and submitting negotiable instruments to the State Bank of Vietnam, the State Bank of Vietnam shall transfer funds to the credit institution or foreign bank branch.

3. Upon expiration of the discounting period (in the case of negotiable instruments with a term), the credit institution or foreign bank branch shall pay the amount to repurchase negotiable instruments from the State Bank of Vietnam and reclaim the negotiable instruments according to the commitment.

Article 15. Cases Where Discounting Is Not Accepted

1. The credit institution or foreign bank branch has exhausted its discounting limit.

2. The application for discounting does not meet the conditions stipulated in this Circular.

Article 16. Formula for Determining the Amount Paid When Discounting Negotiable Instruments of Credit Institutions and Foreign Bank Branches

1. In the case of discounting the entire remaining term:

1.1. For negotiable instruments that pay interest immediately upon issuance:

1.1.1. For short-term negotiable instruments that pay interest immediately upon issuance:

Where:

G: The amount the State Bank of Vietnam pays when discounting negotiable instruments;

MG: Face value of the negotiable instrument;

T: Remaining term of the negotiable instrument (number of days);

L: Discount rate at the time the State Bank of Vietnam discounts the negotiable instrument (% per year);

365: Number of days assumed for one year.

1.1.2. For long-term negotiable instruments that pay interest immediately upon issuance:

Where:

G: The amount the State Bank of Vietnam pays when discounting negotiable instruments;

MG: Face value of the negotiable instrument;

T: Remaining term of the negotiable instrument (number of days);

L: Discount rate at the time the State Bank of Vietnam discounts the negotiable instrument (% per year);

365: Number of days assumed for one year.

1.2. For negotiable instruments that pay principal and interest once upon maturity:

1.2.1. For short-term negotiable instruments that pay principal and interest once upon maturity:

Where:

                   

G: The amount the State Bank of Vietnam pays when discounting negotiable instruments;

GT: Value of the negotiable instrument at maturity, including face value and interest;

MG: Face value;

T: Remaining term of the negotiable instrument (number of days);

L: Discount rate at the time the State Bank of Vietnam discounts the negotiable instrument (% per year);

365: Number of days assumed for one year;

Ls: Issuance interest rate of the negotiable instrument (% per year);

n: Term of the negotiable instrument (number of days).

1.2.2. For long-term negotiable instruments that pay principal and interest once upon maturity (interest not capitalized):

In which: GT = MG x [1 + (Ls x n)]

G: The amount the State Bank of Vietnam pays when discounting negotiable instruments;

GT: Value of the negotiable instrument at maturity, including face value and interest;

MG: Face value;

T: Remaining term of the negotiable instrument (number of days);

L: Discount rate at the time the State Bank of Vietnam discounts the negotiable instrument (% per year);

365: Number of days assumed for one year;

Ls: Issuance interest rate of the negotiable instrument (% per year);

n: Term of the negotiable instrument (years).

1.2.3. For long-term negotiable instruments that pay principal and interest once upon maturity (interest capitalized):

In which: GT = MG x (1 + Ls)^{For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.}

G: The amount the State Bank of Vietnam pays when discounting negotiable instruments;

GT: Value of the negotiable instrument at maturity, including face value and interest;

MG: Face value;

T: Remaining term of the negotiable instrument (number of days);

L: Discount rate at the time the State Bank of Vietnam discounts the negotiable instrument (% per year);

365: Number of days assumed for one year;

Ls: Issuance interest rate of the negotiable instrument (% per year);

n: Term of the negotiable instrument (years).

1.3. For long-term negotiable instruments that pay principal and interest periodically:

Where:

G: The amount the State Bank of Vietnam pays when discounting negotiable instruments;

C_i: Amount paid for interest and principal on the i-th payment;

i: i-th payment of interest and principal;

L: Discount rate at the time the State Bank of Vietnam discounts the negotiable instrument (% per year);

365: Number of days assumed for one year;

k: Number of interest payments per year;

T_i: Time from the discounting date to the i-th payment of interest and principal (number of days);

2. In the case of term discounting:

2.1. The formula for determining the amount the State Bank of Vietnam pays to credit institutions and foreign bank branches when discounting negotiable instruments (outbound price) is calculated according to the formula stated in Clause 1 of this Article.

2.2. The formula for determining the amount credit institutions and foreign bank branches pay to the State Bank of Vietnam when the discounting period expires (inbound price):

Where:

Gv: The amount credit institutions and foreign bank branches pay to the State Bank of Vietnam when the discounting period expires;

G: The amount the State Bank of Vietnam pays when discounting negotiable instruments;

L: Discount rate at the time the State Bank of Vietnam discounts the negotiable instrument (% per year);

Tb: Discounting term (calculated in days);

365: Number of days assumed for one year.

Article 17. Handling Violations

1. After one working day from the expiry date of the discounting period (in the case of term discounting), if the credit institution or foreign bank branch requesting discounting fails to make payment or makes an insufficient payment to the State Bank of Vietnam to reclaim the negotiable instruments according to the commitment, the State Bank of Vietnam will deduct the amount from the deposit account of the credit institution or foreign bank branch at the State Bank of Vietnam to recover the debt.

If the deposit account of the credit institution or foreign bank branch requesting discounting does not have sufficient funds, the State Bank of Vietnam will take the following measures:

a) Recover the debt from other sources (if available) of the credit institution or foreign bank branch;

b) Transfer the outstanding amount to overdue debt and the credit institution or foreign bank branch must bear an overdue interest rate equal to 150% of the discounting interest rate;

c) Issue a report on the handling of violations to the credit institution or foreign bank branch.

2. After three working days from the date the State Bank of Vietnam issues a Notice of Violation Handling, if the credit institution or foreign bank branch requesting discounting fails to make payment to the State Bank of Vietnam, the State Bank of Vietnam will consider selling the negotiable instruments of the credit institution or foreign bank branch it holds in the money market to recover the outstanding amount according to regulations. The credit institution or foreign bank branch will not be allowed to participate in discounting transactions with the State Bank of Vietnam for a period of six months from the date of receiving the violation handling notice.

3. In the case where the credit institution or foreign bank branch requesting discounting does not comply with the provisions of Clause 1, Article 14 of this Circular, it shall be deemed that the credit institution or foreign bank branch has canceled the discounting request twice, and such credit institution or foreign bank branch will not be allowed to continue participating in discounting transactions with the State Bank of Vietnam for a period of six months from the date the State Bank of Vietnam issues a notice accepting the second discounting request.

Chapter III
IMPLEMENTATION

Article 18. Responsibilities of credit institutions and foreign bank branches

1. Provide complete and timely documents and materials as prescribed in this Circular and bear legal responsibility for the accuracy and legality of the data and materials provided to the State Bank.

2. Submit the application for notification of discount limit, discount request form, and repurchase commitment form in accordance with the regulations of the State Bank of Vietnam.

3. Fulfill all commitments and make full and timely payments to the State Bank of Vietnam when performing discount operations.

4. Carry out procedures for transferring ownership rights and submitting negotiable instruments between credit institutions, foreign bank branches, and the State Bank of Vietnam when performing discount operations with the State Bank of Vietnam.

5. Strictly comply with requirements in notifications from the State Bank of Vietnam regarding debt resolution.

Article 19. Responsibilities of relevant units under the State Bank

1. Monetary Policy Department

a) Take the lead and coordinate with relevant units to determine the amount of funds allocated for discount operations each quarter for approval by the Governor of the State Bank of Vietnam.

b) Advise the Governor of the State Bank of Vietnam on determining and announcing the discount rate.

c) Coordinate with relevant units to resolve difficulties and issues arising during the implementation of discount operations.

2. Credit Department

a) Take the lead and coordinate with relevant units to propose to the Governor of the State Bank of Vietnam decisions on priority sectors for discount operations during each period.

b) Publicize the allocation of discount limits to credit institutions and foreign bank branches based on the total approved discount limit for priority sectors.

c) Notify discount limits to credit institutions, foreign bank branches, and Trading Departments.

d) Take the lead and coordinate with relevant units to propose to the Governor of the State Bank of Vietnam to supplement or adjust the list of negotiable instruments eligible for discount by the State Bank of Vietnam when necessary.

đ) Summarize the situation of discount limit allocation and implementation of discount operations from Trading Departments and authorized State Bank branches quarterly to report to the Governor of the State Bank of Vietnam.

3. Trading Department

a) Guide the process of implementing discount operations on negotiable instruments at Trading Departments and authorized State Bank branches.

b) Perform discount operations for credit institutions and foreign bank branches within the notified discount limits, recover principal and interest according to this Circular.

c) Organize the transfer, storage, and preservation of discounted negotiable instruments, file documents, return negotiable instruments, and record negotiable instruments according to regulations.

d) Serve as the focal point and coordinate with related units to handle issues concerning the transfer of ownership of negotiable instruments and resolve difficulties and issues arising during the implementation of discount operations.

đ) Implement securities registration for negotiable instruments used for discounting at the State Bank of Vietnam according to regulations, confirm the registration of negotiable instruments of credit institutions and foreign bank branches requesting discounting if such institutions are currently registering negotiable instruments at the State Bank of Vietnam.

e) Carry out procedures for transferring ownership rights of negotiable instruments between the State Bank of Vietnam and credit institutions, foreign bank branches when performing discount operations with the State Bank of Vietnam.

g) Establish and handle violations by credit institutions and foreign bank branches that breach the repurchase commitment of negotiable instruments as stipulated in Article 17 of this Circular.

h) Regularly compile results of discount operations across the entire system quarterly to report to the Governor of the State Bank of Vietnam, while sending reports to the Credit Department and the Monetary Policy Department (using Form No. 08/NHNN-CK).

i) Advise the Governor of the State Bank of Vietnam on delegating authority to provincial State Bank branches to perform all or part of discount operations for credit institutions and foreign bank branches within their jurisdictions.

4. Accounting and Finance Department

Guide the accounting entries related to discount operations.

5. Information Technology Bureau

a) Coordinate with Trading Departments in issuing new and revoking access codes and electronic signature codes for personnel involved in State Bank of Vietnam's and credit institutions' discount operations.

b) Be responsible for developing software programs, technical systems, and communication links, and coordinate with Trading Departments in technical processing to ensure smooth communication and secure, accurate transactions in discount operations.

6. Authorized State Bank Branches

a) Perform discount operations for credit institutions and foreign bank branches within the scope of delegated authority.

b) Report quarterly on the results of discount operations in their jurisdiction to the Credit Department and Trading Departments (using Form No. 08/NHNN-CK).

7. Banking Supervision Authority

Coordinate in notifying the activities of credit institutions and foreign bank branches to the Credit Department upon request.

Article 20. Effective Date

1. This Circular takes effect from March 31, 2012, and replaces Decision No. 898/2003/QĐ-NHNN dated August 12, 2003, of the State Bank of Vietnam on the issuance of the Discount and Re-discount Regulations for Banks, Decision No. 12/2008/QĐ-NHNN dated April 29, 2008, of the State Bank of Vietnam on amending certain provisions of the Discount and Re-discount Regulations for Banks issued pursuant to Decision No. 898/2003/QĐ-NHNN dated August 12, 2003, Clause 1 of Circular No. 26/2011/TT-NHNN dated August 31, 2011, of the State Bank of Vietnam on implementing the plan to simplify administrative procedures in monetary activities according to Government Resolutions.

2. The Head of the Office, Heads of the Credit Department and other units under the State Bank of Vietnam, Governors of provincial State Bank branches; Chairmen of Management Councils, Chairmen of Member Councils, General Managers (Directors) of credit institutions, Central People's Credit Funds, and foreign bank branches are responsible for implementing this Circular./.