Circular No. 08/2013/TT-NHNN on the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches

CIRCULAR

Regulations on the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches

 at credit institutions and foreign bank branches

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Pursuant to the Law on the State Bank of Vietnam number 46/2010/QH12 dated June 16, 2010;1Decision number 156/2013/NĐ-CP dated June 11,

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 20102010;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of Director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam issues this Circulary a) Providing testimonies and expert opinions for the case for which they have been summoned; the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches,

Article 1. Credit institutions and foreign bank branches shall determine the maximum interest rate for deposits in Vietnamese dong of organizations (excluding credit institutions and foreign bank branches) and individuals, including promotional expenses under all forms, as follows:

1. The maximum interest rate applicable to demand deposits and term deposits under one month is 2% per annum.

2. The maximum interest rate applicable to term deposits from one month to less than twelve months is 7.5% per annum: specifically, People's Credit Funds and Microfinance Organizations shall set the maximum interest rate for term deposits from one month to less than twelve months at 8% per annum.

3. The interest rate for term deposits of twelve months or longer shall be determined by credit institutions and foreign bank branches based on market supply and demand for capital.

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

Article 2. The maximum interest rates for deposits prescribed in Article 1 of this Circular shall apply to end-of-period interest payment methods and other interest payment methods converted to end-of-period interest payment methods.

Article 3. Credit institutions and foreign bank branches must publicly display the interest rates for deposits in Vietnamese dong at locations where deposits are accepted according to the regulations of the State Bank of Vietnam. Strictly prohibit credit institutions and foreign bank branches from conducting promotions in any form (cash, interest rates, and other forms) that do not comply with the provisions of the law and this Circular when accepting deposits.

Article 4. Organization of Implementation

1. This Circular takes effect from March 26, 2013, and replaces Circular No. 32/2012/TT-NHNN dated December 21, 2012, issued by the Governor of the State Bank of Vietnam, which regulates the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches.

2. For deposits in Vietnamese dong with terms of organizations and individuals at credit institutions and foreign bank branches that arise before this Circular takes effect, they will continue to be implemented until their maturity; upon expiration of the agreed term, if the organization or individual does not withdraw the deposit, the credit institution or foreign bank branch shall determine the interest rate for the deposit according to this Circular.

3. Banking inspection and supervision agencies and State Bank branches in provinces and centrally-administered cities shall conduct inspections, audits, and supervision of the implementation of regulations on the interest rate for deposits in Vietnamese dong; apply measures within their authority to handle violations by credit institutions and foreign bank branches as prescribed in this Circular.

4. Head of the Office, Director of the Monetary Policy Department, and Heads of units under the State Bank of Vietnam. Directors of State Bank branches in provinces and centrally-administered cities: Chairmen of the Board of Directors, Members of the Board of Management, and General Managers (Directors) of credit institutions, foreign bank branches, and related organizations and individuals are responsible for implementing this Circular.