Directive No. 05/2007/CT-NHNN on paying salaries through accounts for subjects receiving salaries from the state budget according to Directive No. 20/2007/CT-TTg dated August 24, 2007 of the Prime Minister

DIRECTIVE

Regarding payment of salaries through bank accounts

for subjects receiving salaries from the state budget

pursuant to Directive No. 20/2007/CT-TTg dated August 24, 2007 of the Prime Minister

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On August 24, 2007, the Prime Minister signed Directive No. 20/2007/CT-TTg on payment of salaries through bank accounts for subjects receiving salaries from the state budget (Directive 20). To strictly implement this Directive, the Governor of the State Bank of Vietnam requests the heads of units under the State Bank of Vietnam, service providers, permanent agencies of banking associations, and related units to implement the following specific contents:

1. Units need to understand the objectives, significance, and strictly implement the contents of Directive 20 within their scope of functions and powers. They should disseminate Directive 20 to all staff members, actively promote it to service providers, salary recipients, and related units to effectively implement Directive 20.

2. Branches of the State Bank in provinces and centrally-administered cities:

- Advise provincial People's Committees to direct the promotion, dissemination, and implementation of salary payments through bank accounts for subjects receiving salaries from the state budget where conditions permit, in accordance with the spirit of the Prime Minister's directive.

- Coordinate with departments, agencies, political organizations, social-political organizations, Treasury, and service providers to continue expanding the provision and guidance on the use of payment instruments and salary payment services through bank accounts for subjects receiving salaries from the state budget, while directing service providers to reasonably arrange automatic teller machine networks and point-of-sale terminals (POS) in the area.

3. Service providers:

- Direct units throughout the system to strictly implement Directive 20; open bank accounts for units and individuals; provide payment instruments and services that facilitate salary payments through bank accounts in an active and effective manner.

- Proactively coordinate with Treasuries at various levels, organizations receiving salaries from the State Bank, and service providers supporting cashless transactions to effectively implement Directive 20.

- Expand salary payment services through bank accounts for subjects outside the scope specified in Directive 20.

4. Payment Department of the State Bank:

- Serve as the lead unit assisting the Governor in coordinating with central-level advisory bodies of ministries, departments, agencies, provincial People's Committees, and other relevant entities to implement the provisions of Directive 20.

- Continue to strengthen organizational structures, gradually improve the legal framework and policies for payment, and take the lead in coordinating with the Banking Information Technology Department to develop a proposal for network connection to form a unified card switching center according to the roadmap set out in Decision No. 291-QĐ-TTg dated December 29, 2006 of the Prime Minister, to be submitted to the leadership of the State Bank no later than November 30, 2007.

- Coordinate with the Central Treasury and service providers to study and guide the use of payment instruments and salary payment services through bank accounts for subjects receiving salaries from the state budget.

5. Banking Information Technology Department:

- Accelerate the implementation of Phase 2 of the Modernization of Banking and Payment System Project; organize the development of common information technology standards to ensure the interconnection of payment networks and establish an infrastructure for information technology to quickly form and operate a national unified card switching center.

- Coordinate with the Payment Department, service providers, and data transmission service providers to ensure stable, uninterrupted, and secure communication channels for payment activities. Guide service providers to invest in developing information technology as a basis for developing cashless payment services in the near future, initially serving the implementation of Directive 20.

6. Office of the State Bank:

Lead coordination with banking press units and news agencies to widely publicize the necessity and benefits of salary payments through bank accounts, procedures for opening and using bank accounts, as well as the use of cashless payment services.

7. National Financial Switching Corporation (BanknetVN) needs to strengthen its organization, increase the scale of operations, and prepare technical and human resources to meet the requirements for connecting with service providers, permitted card service operators, and payment systems.

8. Regarding reports:

- During the implementation of Directive 20, if difficulties arise, units must immediately report to the State Bank (Payment Department) for timely consideration and resolution.

- Every six months and annually, branches of the State Bank in provinces and centrally-administered cities must compile the implementation status of Directive 20 in their respective areas, while service providers must compile the implementation status of Directive 20 within their systems, highlighting advantages, difficulties, solutions, and recommendations, and submit them to the State Bank (Payment Department) no later than June 30 and December 31 each year for consolidation and reporting to the Prime Minister.

9. This Directive takes effect fifteen days after its publication in the Official Gazette. The Chief of the Office, Head of the Payment Department, and heads of units under the State Bank of Vietnam, Governors of State Bank Branches in provinces and centrally-administered cities, Boards of Directors and General Managers (Directors) of service providers, and related units are responsible for implementing this Directive./