Circular No. 06/2006/TT-NHNN guiding the implementation of Clause 3, Article 6 of Decision No. 270/2005/QĐ-TTg dated October 31, 2005 of the Government Chairman on organizing the mobilization, management, and utilization of postal savings deposits.

CIRCULAR

Guidelines for implementing Clause 3, Article 6 of Decision No. 270/2005/QĐ-TTg dated October 31, 2005 of the Prime Minister on organizing the mobilization, management, and utilization of postal savings deposits

In implementing Clause 3, Article 6 of Decision No. 270/2005/QĐ-TTg dated October 31, 2005 of the Prime Minister on organizing the mobilization, management, and utilization of postal savings deposits, the State Bank of Vietnam (hereinafter referred to as the State Bank) guides the Postal Savings Service Organizations of the Vietnam Post and Telecommunications Corporation to carry out certain banking activities as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. The Vietnam Post and Telecommunications Corporation is organized to provide postal savings services with the following purposes:

a) To mobilize idle funds from residents to supplement capital for investment and development, and capital for lending to poor households and other policy beneficiaries in accordance with the Government's guidelines.

b) To provide certain banking services as stipulated in the Law on Credit Institutions No. 02/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions No. 20/2004/QH11 dated June 15, 2004.

2. The State Bank shall perform its state management functions over currency and banking services in accordance with the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003 regarding the activities of the Postal Savings Service Organizations of the Vietnam Post and Telecommunications Corporation as specified in this Circular.

II. SPECIFIC PROVISIONS

1. Capital Mobilization:

1.1. Postal Savings Service Organizations may mobilize capital from residents as follows:

a) Accepting demand deposits and term deposits in accordance with the Deposit Savings Regulations issued by Decision No. 1160/2004/QĐ-NHNN dated September 13, 2004 of the Governor of the State Bank;

b) Issuing deposit certificates and other securities in accordance with specific regulations of the State Bank.

1.2. Interest rates for deposit savings, issuance of deposit certificates, and other securities of Postal Savings Service Organizations must be consistent with market interest rates at each time of mobilization.

2. Ensuring Regular Payments:

Postal Savings Service Organizations must retain at least 8% of the total postal savings capital to ensure regular payments to depositors when their deposits mature or they have an early withdrawal request.

3. Safeguarding and Transporting Cash and Securities:

Postal Savings Service Organizations shall implement cash safeguarding and transportation, vault management systems, and specialized transport equipment in accordance with current regulations of the State Bank.

4. Postal Savings Service Organizations may provide the following services to individual customers who have opened accounts with them after being granted permission by the State Bank:

4.1. Opening personal accounts.

4.2. Providing check withdrawal services.

Check withdrawals can only be used by the account holder or someone authorized by the account holder to withdraw cash. The provision, use, and settlement of check withdrawal services for customers shall be carried out in accordance with the Rules on Provision and Use of Checks issued together with Decision No. 30/2006/QĐ-NHNN dated July 11, 2006 of the Governor of the State Bank.

4.3. Issuing and settling cash withdrawal cards and debit cards.

Cash withdrawal cards and debit cards can be used by the account holder to withdraw cash and pay for goods and services within the balance on their account at the Postal Savings Service Organization. The issuance, use, and settlement of cash withdrawal cards and debit cards shall be carried out in accordance with the Rules on Issuance, Use, and Settlement of Bank Cards issued pursuant to Decision No. 371/1999/QĐ-NHNN1 dated October 19, 1999 of the Governor of the State Bank.

4.4. Implementing collection and payment services in accordance with the Rules on Payment Operations through Service Providers issued pursuant to Decision No. 226/2002/QĐ-NHNN dated March 26, 2002 of the Governor of the State Bank.

4.5. Conditions for the State Bank to grant permission to provide services as specified in Points 4.1, 4.2, and 4.4 of Clause 4, Section II of this Circular shall be implemented in accordance with Clause 4, Article 2 of the Rules on Payment Operations through Service Providers issued pursuant to Decision No. 226/2002/QĐ-NHNN dated March 26, 2002 of the Governor of the State Bank.

4.6. Documents required for applying for permission to provide services as specified in Points 4.1, 4.2, and 4.4 of Clause 4, Section II of this Circular include:

a) Application for permission to provide payment services;

b) Charter of the Postal Savings Service Organization;

c) Decision or license for establishment, business registration certificate for current business operations;

d) List and resumes of General Director (Director) and members of the Supervisory Board;

đ) Balance sheet financial statements for the last three years;

e) Payment operation plan as stipulated in Point b, Clause 4, Article 2 of the Rules on Payment Operations through Service Providers issued pursuant to Decision No. 226/2002/QĐ-NHNN dated March 26, 2002 of the Governor of the State Bank;

g) Other relevant documents as required by the State Bank.

4.7. Time limit for granting permission to provide payment services:

a) Within 90 days from the date of receipt of complete application documents, the State Bank will issue or refuse permission to provide payment services to Postal Savings Service Organizations. In case of refusal, the State Bank will issue a written notice stating the reasons.

b) Within 12 months from the date of permission, Postal Savings Service Organizations must commence payment service operations.

4.8. Business Registration:

After obtaining permission to provide payment services, Postal Savings Service Organizations must register their business in accordance with the law.

4.9. Conditions for Postal Savings Service Organizations to conduct payment service operations after being granted permission by the State Bank:

a) Having a business registration certificate;

b) Having a business office suitable for the requirements of payment service provision activities;

c) Publishing in central and local newspapers in accordance with the provisions of the law on the contents of the activities specified in the license;

d) Having a team of staff with professional qualifications to manage and implement payment services that have been licensed;

4.10. Postal savings service organizations may have their payment service provision licenses revoked if any of the following circumstances occur:

a) There is evidence that the information in the application for the license was false;

b) After the time limit stipulated in point b, Clause 4, Section II of this Circular, they fail to conduct payment service provision activities;

c) Voluntarily or being compelled by competent state authorities to be dissolved;

d) Splitting, merging, consolidating, or going bankrupt;

đ) Operating contrary to the purpose;

e) Not meeting the conditions prescribed in point 4.9, Clause 4, Section II of this Circular.

4.11. After having their payment service provision license revoked, postal savings service organizations must immediately cease payment service provision activities. The decision to revoke the payment service provision license shall be announced by the State Bank on mass media.

4.12. Postal savings service organizations use electronic vouchers as accounting vouchers for recording and settling funds according to the regulations on the preservation and storage of used electronic vouchers for accounting and fund settlement issued under Decision No. 376/2003/QĐ-NHNN dated April 22, 2003 of the Governor of the State Bank.

5. Remittance services:

Postal savings service organizations can carry out foreign currency receipt and payment services based on agency agreements for foreign currency payments signed with authorized banks or principle agreements for foreign currency receipt and payment services signed with overseas money transfer companies. Conditions, procedures for issuing licenses, suspension, and revocation of foreign currency receipt and payment services are carried out in accordance with Circular No. 02/2000/TT-NHNN7 dated February 24, 2000, guiding the implementation of Decision No. 170/1999/QĐ-TTg dated August 19, 1999 of the Prime Minister encouraging overseas Vietnamese to remit money back home, and Decision No. 878/2002/QĐ-NHNN dated August 19, 2002 of the Governor of the State Bank amending and supplementing certain points in Circular No. 02/2000/TT-NHNN7 dated February 24, 2000, guiding the implementation of Decision No. 170/1999/QĐ-TTg dated August 19, 1999 of the Prime Minister encouraging overseas Vietnamese to remit money back home.

6. Reporting system:

6.1. Monthly, within the first fifteen days of each month, postal savings service organizations must report to the State Bank on postal savings mobilization activities, the use of postal savings funds, and the interest rates for postal savings mobilization of the previous month according to Forms 1, 2, and 3 attached to this Circular.

6.2. Postal savings service organizations must comply with the reporting system for payment service provision activities as prescribed in Decree No. 64/2001/NĐ-CP dated September 20, 2001, of the Government on payment activities through payment service providers and the Operational Regulations on Payment Activities through Payment Service Providers issued under Decision No. 226/2002/QĐ-NHNN dated March 26, 2002, of the Governor of the State Bank.

6.3. Postal savings service organizations must comply with the reporting system for remittance activities as prescribed in Circular No. 02/2000/TT-NHNN7 dated February 24, 2000, guiding the implementation of Decision No. 170/1999/QĐ-TTg dated August 19, 1999, of the Prime Minister encouraging overseas Vietnamese to remit money back home, and Decision No. 878/2002/QĐ-NHNN dated August 19, 2002, of the Governor of the State Bank amending and supplementing certain points in Circular No. 02/2000/TT-NHNN7 dated February 24, 2000, guiding the implementation of Decision No. 170/1999/QĐ-TTg dated August 19, 1999, of the Prime Minister encouraging overseas Vietnamese to remit money back home.

6.4. Postal savings service organizations must provide reports and supply information to competent state authorities in accordance with Decree No. 74/2005/NĐ-CP dated June 7, 2005, of the Government on anti-money laundering and other relevant regulations of the State Bank.

6.5. In addition to the reports prescribed in points 6.1, 6.2, 6.3, and 6.4 of Clause 6, Section II of this Circular, postal savings service organizations must report to the State Bank in the following cases:

a) Abnormal developments regarding the withdrawal of postal savings deposits;

b) Upon request of the State Bank.

7. Inspection, supervision, and handling of violations:

7.1. The State Bank's inspection body is responsible for supervising and inspecting postal savings service organizations' compliance with laws and regulations concerning banking services provided as stipulated in this Circular.

7.2. Postal savings service organizations violating the provisions of this Circular and related laws will be subject to administrative penalties in the field of currency and banking operations or suspension of banking activities according to the law, depending on the nature and severity of the violation.

8. Training support and professional development:

8.1. Annually, postal savings service organizations assess employee quality at each level in conjunction with future business expansion or contraction strategies to determine training needs, develop training and professional development plans for employees to submit to the State Bank (Department of Organization and Personnel), specifying the purpose of the training course, skills to be achieved post-training, number of employees participating in training at each level, training duration, and location.

8.2. The State Bank (Department of Organization and Cadres) shall base on the needs and plans for training postal savings service staff to develop the content and training programs; prepare and provide materials, assign trainers, organize the assessment of the training results for postal savings service staff.

8.3. Postal savings service organizations shall be responsible for convening, arranging accommodation and study places for trainees, managing classes, and paying training and development expenses; participate in evaluating the training results.

III. IMPLEMENTATION

1. This Circular takes effect fifteen days from the date of publication in the Official Gazette and replaces Circular No. 05/1999/TT-NHNN dated November 5, 1999 guiding the implementation of Clause 2, Article 5 of Decision No. 215/1998/QĐ-TTg dated November 4, 1998 of the Prime Minister regarding the organization of postal savings fund mobilization, management, and utilization.

2. Postal savings service organizations are not required to reapply for permits for payment services that have been approved by the State Bank under Decision No. 120/QĐ-NHNN dated February 13, 2003 of the Governor of the State Bank allowing Vietnam Post and Telecommunications Corporation to implement payment services.

3. The Chairman of the Board of Directors and General Director of Vietnam Post and Telecommunications Corporation, and the General Director (Director) of Postal Savings Service Organizations are responsible for implementing this Circular.

4. In case of difficulties during implementation, Vietnam Post and Telecommunications Corporation and Postal Savings Service Organizations shall report to the State Bank (Department of Banks and Non-Bank Credit Institutions) for timely review, supplementation, and amendment.