Circular No. 07/2014/TT-NHNN on interest rates for deposits in Vietnamese dong of organizations and individuals at credit institutions

CIRCULAR

Interest rates for deposits in Vietnamese dong of organizations and individuals at credit institutions

individual at credit institution

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

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013, of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Article 1.

The Governor of the State Bank of Vietnam issues this Circular to regulate interest rates for deposits in Vietnamese dong of organizations and individuals at credit institutions.

Article 1

1. Credit institutions and foreign bank branches (hereinafter referred to as credit institutions) shall apply interest rates for deposits in Vietnamese dong of organizations and individuals not exceeding the maximum interest rate for demand deposits, deposits with terms under one month, and deposits with terms from one month to less than six months, as decided by the Governor of the State Bank of Vietnam during each period and for each type of credit institution.

2. Credit institutions shall apply interest rates in Vietnamese dong for deposits with terms of six months or longer of organizations and individuals based on market supply and demand for capital.

3. Deposits include forms of demand deposits, time deposits, savings deposits, deposit certificates, bills, promissory notes, bonds, and other deposit-taking forms of organizations (excluding credit institutions) and individuals as stipulated in Clause 13, Article 4 of the Law on Credit Institutions.

Article 2. The maximum interest rate for deposits prescribed in this Circular includes all promotional allowances in any form, applicable to end-of-period interest payment methods and other interest payment methods converted to end-of-period interest payment methods.

Article 3. Credit institutions shall publicly display interest rates for deposits in Vietnamese dong at locations where deposits are accepted according to the regulations of the State Bank of Vietnam. Strictly prohibited are any promotional activities (in cash, interest rates, and other forms) by credit institutions when accepting deposits that do not comply with the provisions of the law and this Circular.

Article 4. Implementation

1. This Circular takes effect from March 18, 2014, and replaces Circular No. 15/2013/TT-NHNN dated June 27, 2013, issued by the Governor of the State Bank of Vietnam regulating the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches.

2. For interest rates for deposits in Vietnamese dong with terms of organizations and individuals at credit institutions arising before the effective date of this Circular, they shall be implemented until the agreed term expires; if the term has expired and the organization or individual does not withdraw the deposit, the credit institution shall apply the interest rate for deposits as prescribed in this Circular.

3. Banking inspection and supervision agencies and State Bank of Vietnam branch offices in provinces and centrally administered cities shall conduct inspections, audits, and supervision of the implementation of regulations on deposit interest rates in Vietnamese dong; apply measures within their authority to handle violations by credit institutions of this Circular.

4. The Director of the Office, Heads of the Monetary Policy Department and other units under the State Bank of Vietnam, Governors of State Bank of Vietnam branch offices in provinces and centrally administered cities; Chairmen of Management Boards, Chairmen of Board of Members, and General Directors (Directors) of credit institutions and foreign bank branches are responsible for organizing the implementation of this Circular.