Directive No. 03/CT-NH2 on rectifying settlement operations and updating accounting work in the banking sector

DIRECTIVE

REGARDING THE ENFORCEMENT OF INTER-BANK PAYMENT PROCEDURES AND THE UPDATING OF ACCOUNTING WORK IN BANKS

Since the implementation of inter-bank payments through computer networks according to Circular No. 432/CV-NH2 dated October 26, 1992 of the Governor of the State Bank, there has been significant improvement in payment operations: Shortening of payment time through banks, faster capital turnover through banks, timely service for production and business activities of customers, and continuous improvement and efficiency. However, the current speed of inter-bank payments still does not meet the requirements of the economy, with many transfers being delayed, taking up to 2-3 days, and even up to 4-5 days in some cases. There are also many issues that need to be resolved such as the circulation of payment documents and information transmission between departments within a bank, and between Bank A and Bank B, which are still slow and cumbersome, and responsibilities among departments in handling transfers have not been clearly defined.

To "Improve payment operations" and to address the aforementioned issues, accelerate the speed of inter-bank payments so that all transfers are recorded and updated on the same day by Bank A and Bank B, branches of the State Bank at provincial and municipal levels, state-owned commercial banks, joint-stock commercial banks, joint venture banks, and foreign bank branches in Vietnam (hereinafter referred to as credit institutions) shall implement the following contents:

1- Organize and arrange working hours for certain departments appropriately:

1.1- Banks need to consider rearranging the transfer and receipt departments of payment documents through banks reasonably, reducing intermediate steps. All tasks related to the transfer and receipt of payment document transfer such as issuing inter-bank notification forms, calculating secret codes, entering data into computers, controlling and transmitting inter-bank files (at Bank A) as well as receiving inter-bank files, printing out, checking secret codes, and recording into appropriate accounts (at Bank B), accounting departments must update these tasks on the same day (including closing books and preparing daily balances).

To align with customer transaction times, the Branch Governors of the State Bank - General Directors, and Credit Institution Directors need to rearrange afternoon working hours of Accounting and Information Technology Departments between banks in the area to ensure that payment documents are processed and updated on the same day. For banks in provinces and cities with high volumes of document transactions such as Hanoi, Ho Chi Minh City, State Bank Trading Departments, Hai Phong, Quang Nam - Da Nang, Can Tho, Nghe An, Quang Ninh, Dong Nai, Ba Ria - Vung Tau..., should study rearranging afternoon working hours of accounting and information technology departments to ensure that transfers are recorded at Bank A and Bank B on the same day. The afternoon working hours of accounting and information technology departments of these banks can be arranged from 14:30 to 18:30. Mountainous provinces with low volumes of generated documents (customer payment transfer documents) and few transfers received from the Interbank Payment Center (or CIB) do not need to change the working hours of accounting and information technology departments.

1.2- Time for document transfer and information transmission:

For mountainous banks or provincial banks with low volumes of documents and few transfers, afternoon working hours of Accounting and Information Technology Departments will continue as usual without changing afternoon working hours.

For provincial and city banks that have changed afternoon working hours of Accounting and Information Technology Departments as mentioned above (banks in Hanoi, Ho Chi Minh City, State Bank Trading Departments, Hai Phong, Quang Nam - Da Nang, Can Tho, Nghe An, Quang Ninh, Dong Nai, Ba Ria - Vung Tau...), they must notify in writing the Interbank Control and Reconciliation Center in the system and implement inter-bank payments with each other according to the following regulations:

1.2.1- At Bank A:

a- At Credit Institution A: Only accept customer transfers up to 15:30 every day (transfers after 15:30 will still be accepted but customers must be informed that the transfer will be made the next morning):

- For transfers outside the system: Must immediately process the transfer and complete the transfer of documents to the State Bank no later than 16:30.

- For transfers within the system: Must transmit inter-bank files to Bank B or the Interbank Payment Center (if the inter-bank payment process requires transmission through the Interbank Payment Center) before 17:00.

In case of multiple simultaneous transfers, they must be handled in the following order:

- Transfers outside the system or requiring passage through the State Bank must be processed first, followed by transfers within the system.

- Large transfers of 100 million dong or more or urgent transfers must be given priority over smaller value transfers.

- System transfers must also prioritize transfers between the North and South regions over internal regional transfers (North or South).

b. At Bank A: Only accept transfer documents from credit institutions and customers up to 16:30 and must complete transfer procedures and transmit inter-bank files to the Banking Information Center (CIB, CIB1) before 17:20 on the same day.

In case of multiple simultaneous transfers, they must also be handled in the following order:

- Transfers between the North and South regions must be transmitted first, followed by internal regional transfers (North or South).

- Large transfers of 100 million dong or more or urgent transfers must be given priority over smaller value transfers.

Note: All transfers received from customers after acceptance must be immediately processed and transferred, not accumulated or delayed.

1.2.2- At Bank B:

a. At the State Bank B: Upon receiving the inter-bank file transmitted by CIB after 16:30, it must be recorded immediately on the same day. For transfers to credit organizations, the State Bank must record immediately and send the notification of receipt to the credit organization before 18:00.

b. At Credit Organization B: Upon receiving a transfer from the State Bank or Bank A (within the system) after 16:30, it must also be recorded immediately on the same day.

1.3- At the Banking Computer Center (the Banking Computer Center and the Banking Computer Center Region I of the State Bank) and the inter-bank settlement center (of credit organizations): it is necessary to reorganize the department for receiving and transmitting inter-bank information to ensure smoothness. When receiving inter-bank files transmitted by banks within the system, they must be transmitted immediately to ensure continuous reception and transmission of information without delay, not to form batches or sessions (do not wait until there are many transfer amounts) before transmitting. The working hours of the transmission department must be continuous from 07:30 to 18:30 (excluding lunch break) to transmit information to Bank A and Bank B, and all inter-bank files received during the day must be transmitted before 17:40, absolutely not to be carried over to the next day.

2- Apply appropriate methods of transferring funds to meet the requirements of quick payment by customers.

Banks must ensure convenient and prompt service for customers, facilitate customers in the payment process, and use the following methods of transferring funds:

2.1- Transfer funds through the bank's computer network or Telex. Banks need to prioritize technical equipment for information technology, the transmission department must have an additional backup machine running in parallel with the main machine so that when the main machine has a problem, the backup machine can be used for transmission, ensuring uninterrupted inter-bank transmission within the system. In case of failure (machine breakdown, transmission line failure, power outage...), the bank must immediately transmit by telegraph through the Post Office.

2.2- Transfer funds by telegraph through the Post Office: the transfer of funds by telegraph through the Post Office must be carried out according to the current inter-bank payment regime.

2.3- Transfer funds directly by letter between Bank A and Bank B.

In cases where Bank A and Bank B are located in the same area (district, city) and have the conditions to exchange documents directly with each other, or when requested by the customer. The accounting procedures for transferring funds by letter shall be carried out according to the current inter-bank payment regime.

Departments responsible for fund transfers (both incoming and outgoing) must process the customer's transfer documents immediately upon receipt, without delay or loss of documents. If any unit or individual fails to comply with accounting regulations causing delays in inter-bank payments, they shall be subject to late payment penalties and administrative fines according to the current administrative penalty regime in the field of accounting and statistics.

3. The Banking Computer Center must quickly implement the software program connecting transaction accounting and payment transfer accounting to process ONLINE (automatically) at the remaining State Banks and study the development of a software program connecting the bookkeeping stage with the transmission of information and vice versa to speed up payment time; reduce intermediate stages in the transmission and receipt of inter-bank files, not having to go through multiple information processing departments as currently practiced.

4- Rectify inter-bank settlement operations in provinces and cities: Branches of the State Bank in provinces and cities and credit organizations must effectively implement inter-bank settlement according to Decision No. 181/QD-NH2 dated October 10, 1991 of the Governor of the State Bank, specifically:

4.1- Depending on the volume of business on the territory, branches of the State Bank in provinces and cities organize an increase in the number of inter-bank settlement sessions and document exchanges in a day. Provinces with low transaction volumes (mountainous provinces) must organize at least one session per day; provinces and cities with moderate transaction volumes must organize at least two sessions per day; large cities (Hanoi, Ho Chi Minh City, Quang Nam - Da Nang, Hai Phong, Can Tho, Nghe An, Quang Ninh, Dong Nai, Ba Ria - Vung Tau...) must organize at least three sessions per day to facilitate the processing of documents and recording into the accounts of credit organizations on the same day. For places that have already implemented inter-bank settlement on a computer network, it is necessary to organize multiple transmissions in a day, timely bookkeeping but safely, and organize document exchanges on the same day.

4.2- For large-value transfers of 100 million dong or more, they must be transferred immediately, without waiting for the inter-bank settlement session; Transfers received from customers before the closing time (before 15:30) but after the inter-bank settlement session must also be transferred immediately on the same day according to the time specified in point 2 of this directive, not to be carried over to the next day.

5- The Accounting and Finance Department of the State Bank must urgently complete the new inter-bank payment system and coordinate with the Banking Computer Center to quickly research to suit the current level of mechanization in the banking sector, with automatic processing procedures for bookkeeping and issuing inter-bank notifications on computers, and modify the customer transfer document format to ensure compatibility with the application of information technology in the accounting and payment fields of the bank.

General Director, Directors of credit organizations, Heads of relevant units at the Central State Bank, Directors of State Bank Branches in provinces and cities within their scope of responsibility, must strictly implement this directive from June 1, 1995.