Circular No. 04/2022/TT-NHNN on the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches

CIRCULAR

Regulations on the application of interest rates for early withdrawal of deposits

at credit institutions and foreign bank branches

Pursuant to the Law on National Financial Management dated June 25, 2015;âof the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law Cof credit institutions dated June 16, 2022010;

Pursuant to the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to Decree No. 16/2017/NĐ-CP dated January 17 the 02 Article 2. The receipt, handling of reflections and petitions from individuals and organizations concerning administrative regulations shall be carried out in accordance with Decree No. 20/2008/NĐ-CP dated February 14, 2008 of the Government on the receipt, handling of reflections and petitions from individuals and organizations concerning administrative regulations (amended and supplemented by Decree No. 48/2013/NĐ-CP dated May 14, 2013 on amending and supplementing certain articles of decrees related to administrative procedure control and Decree No. 92/2017/NĐ-CP dated August 7, 2017 on amending and supplementing certain articles of decrees related to administrative procedure control).7 specialized agency under the People's Committee of the province/city.Deputy ministers of ministerial-level agencies,of the Government stipulating functions, tasks, powersonand organizational structure of ;

At the proposal of the Head of the Monetary policy;

The Governor of the State Bank of Vietnam promulgates this Circular regulations on the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches.

Article 1. Scope of Regulation

Article 1. This Circular stipulates the application of interest rates for early withdrawal, early payment, or early settlement of deposits according to agreement (hereinafter referred to as early withdrawal of deposits) by organizations (excluding credit institutions and foreign bank branches) and individuals depositing money at credit institutions and foreign bank branches.

Article 2. For term deposits made as collateral with credit institutions and foreign bank branches to ensure the fulfillment of obligations under the law, the application of interest rates for early withdrawal of deposits shall be carried out in accordance with separate documents issued by the Government and the State Bank of Vietnam. In cases where these separate documents do not specify interest rates for early withdrawal of deposits, they shall be implemented according to agreements between the parties in compliance with this Circular.

Article 2. Applicability

1. Credit institutions and foreign bank branches (hereinafter referred to as credit institutions) operating in Vietnam in accordance with the Law on Credit Institutions, excluding policy banks.

2. Organizations (excluding credit institutions), individuals depositing money at credit institutions (hereinafter referred to as customers).

Article 3. Forms of Early Withdrawal Deposits

1. Term savings deposits.

2. Term deposits.

4. Other forms of accepting term deposits as prescribed by the Law on Credit Institutions.

Article 4. Early Withdrawal of Deposits

1. Early withdrawal of deposits refers to the case where a customer withdraws part or all of the deposit before the maturity date, payment date, or settlement date of the deposit.

2. Credit institutions and customers agree on early withdrawal of deposits in accordance with the regulations of the State Bank of Vietnam for each specific type of deposit. The agreed interest rate for early withdrawal of deposits must comply with the provisions of Article 5 of this Circular. In cases where there is no agreement on early withdrawal of deposits, the credit institution shall apply the interest rate for early withdrawal of deposits in accordance with the provisions of this Circular.

Article 5. Interest rate for early withdrawal of deposits

1. In cases where the customer withdraws all deposits early: the credit institution shall apply the maximum interest rate equal to the lowest interest rate for demand deposits of that credit institution based on the customer category and/or the currency deposited at the time of early withdrawal.

2. In case the customer withdraws part of the deposit before maturity:

a) For the portion of deposits withdrawn early, the credit institution shall apply the maximum interest rate equal to the lowest interest rate for demand deposits of that credit institution based on the customer category and/or the currency deposited at the time of early withdrawal;

b) For the remaining portion, the credit institution shall apply the current interest rate applicable to the deposit from which the customer has withdrawn part of the amount.

Article 6. Implementation Provisions

1. This Circular takes effect from August 1, 2022, and replaces Circular No. 04/2011/TT-NHNN dated March 10, 2011, of the Governor of the State Bank of Vietnam on the application of interest rates in cases where organizations and individuals withdraw deposits early at credit institutions.

2. For interest rate agreements for early withdrawal of deposits concluded before this Circular takes effect, credit institutions and customers shall continue to implement them according to the commitments made until the maturity date, payment date, or settlement date of the deposit or in accordance with the provisions of this Circular.

Article 7. Implementation Organization

The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam, credit institutions, and foreign bank branches are responsible for organizing the implementation of this Circular./.