Circular No. 08/TT-NH2 guiding the implementation of rules for cashless payment transactions

CIRCULAR OF THE

STATE BANK OF VIETNAM

Guidelines for Implementing the Rules on Cashless Payment Transactions

On February 21, 1994, the Governor of the State Bank issued Decision No. 22/QĐ-NH1 establishing the Rules on Cashless Payment Transactions. This Circular stipulates procedures for opening and using deposit accounts, payment procedures based on existing regulations, and supplements and amends these rules to align with newly issued payment rules, the application of information technology, and banking technological advancements.

 

PART I

OPENING AND USING DEPOSIT ACCOUNTS

 

I. PROCEDURES FOR OPENING DEPOSIT ACCOUNTS

1. To open a deposit account, enterprises, agencies, organizations, associations, armed units, Vietnamese citizens, and foreigners operating within Vietnam (hereinafter referred to as customers) shall submit to the bank where the account will be opened the following documents:

1.1. For customers who are enterprises, agencies, organizations, associations, and armed units:

a. An account registration form signed by the account holder (the account holder must be the General Director, Director, business owner, or unit head), specifying:

The name of the unit (enterprise, agency, organization, association, or armed unit).

The full name of the account holder.

The transaction address of the unit.

The ID number, date, month, year, and issuing authority of the account holder's identification card.

The name of the bank where the account will be opened.

b. A sample signature and stamp registration form for transactions with the bank, including:

The signature of the account holder and those authorized to sign on behalf of the account holder on payment documents (first signature).

The signature of the accounting manager and those authorized to sign on behalf of the accounting manager (second signature).

The unit's stamp.

c. Documents proving the legal status of the unit such as establishment decisions, business licenses, appointments of general directors or directors (if copies, they must have a notarized seal from a state notary).

1.2. For individual customers:

a. An account opening registration form signed by the account holder (the depositor), specifying:

The full name of the account holder.

The transaction address of the account holder.

The ID number, date, month, year, and issuing authority of the account holder's identification card.

The name of the bank where the account will be opened.

b. A signature sample registration form for transactions with the bank where the account will be opened. For personal accounts that do not authorize proxy signatures, all payment documents must be signed by the account holder.

1.3. When there is a change in the signature of the person authorized to sign on payment documents or when changing the stamp, the account holder must submit to the bank where the account is opened a new signature or stamp registration form indicating the effective date of the new signature or stamp replacing the previously registered one.

1.4. The method of preparing the account opening registration form, the stamp and signature registration form is specifically guided by the banks for customers to follow.

2. Upon receipt of the customer's account opening registration form, the bank is responsible for processing the customer's deposit account opening on the same working day. After accepting the account opening, the bank informs the customer of the account number and the start date of the account operation.

 

II. USE OF DEPOSIT ACCOUNTS

1. For account holders:

1.1. Account holders have full rights to use the funds in their deposit accounts.

Within the account balance and according to payment requirements, account holders can make payments through the bank or withdraw cash for use.

1.2. Account holders are responsible for overdrawn payments exceeding the account balance and will be subject to penalties as stipulated in Article 15 of the Rules on Cashless Payment Transactions; they are also responsible for any errors or misuse of payment documents by authorized signatories.

1.3. When making payments through the bank, account holders must comply with the bank's regulations and instructions regarding the preparation of payment documents, methods of depositing and withdrawing money at the bank. The signatures and stamps on payment documents must match the samples registered at the bank.

1.4. Account holders must organize their own accounting and monitor the balance of their deposits at the bank. Within three working days from receiving the bank's notification of debits, credits, or monthly account balance statements, account holders must reconcile these with their records. If discrepancies are found, they must immediately notify the bank for joint reconciliation and adjustment.

2. For the bank:

2.1. Withdrawals from customer deposit accounts for payments must be based on the account holder's request, except in cases where the account holder violates payment discipline or is required by a competent authority to make payments under the law, in which case the bank has the right to withdraw funds from the customer's account to fulfill the payment obligation.

2.2. The bank is responsible for controlling customer payment documents, ensuring compliance with established procedures, matching stamps (if registered) and signatures on payment documents with the registered samples, and verifying sufficient account balances for payments.

The bank has the right to refuse payment if the payment documents do not meet these requirements.

2.3. Upon occurrence of transactions on deposit accounts, the bank must promptly send debit and credit notifications and monthly account balance statements to the account holder.

 

III. CLOSURE OF DEPOSIT ACCOUNTS

THE BANK SHALL CLOSE CUSTOMER DEPOSIT ACCOUNTS WHEN:

The account holder submits a written request for account closure.

The account has been inactive for six consecutive months after the balance has been exhausted, which is considered account closure. If the customer wishes to conduct further transactions, they must follow procedures to open a new account.

After account closure, the account holder must return unused blank checks to the bank.

 

IV. DEPOSIT ACCOUNTS AT THE STATE TREASURY

REGARDING THE PROCEDURES FOR OPENING AND USING DEPOSIT ACCOUNTS FOR BUDGET UNITS UNDER THE STATE BUDGET AT THE STATE TREASURY, THE DIRECTOR OF THE STATE TREASURY SHALL APPLY THE PROVISIONS IN THIS CIRCULAR TO ISSUE GUIDELINES SUITABLE FOR THE STATE BUDGET MANAGEMENT REGIME.

 

PART II

PAYMENT PROCEDURES BETWEEN CUSTOMERS THROUGH BANKS AND THE STATE TREASURY

THROUGH BANKS, THE STATE TREASURY

 

A. PAYMENT BY CHEQUE

 

I. TRANSFER CHEQUE

1. PROCEDURE FOR ISSUING TRANSFER CHEQUES TO CUSTOMERS:

1.1. WHEN PURCHASING CHEQUES, THE ACCOUNT HOLDER (OR AN AUTHORIZED AGENT) SHALL SUBMIT A REQUEST FORM FOR CHEQUE PURCHASE (IN ACCORDANCE WITH THE MODEL PROVIDED BY THE BANK OR THE STATE TREASURY) TO BE SUBMITTED DIRECTLY TO THE BANK OR THE STATE TREASURY WHERE THE ACCOUNT IS HELD. IF THE ACCOUNT HOLDER DOES NOT PERSONALLY RECEIVE THE CHEQUES, THE ACCOUNT HOLDER MUST AUTHORIZE ANOTHER PERSON TO COLLECT THE CHEQUES ON THEIR BEHALF ON THE REQUEST FORM FOR CHEQUE PURCHASE.

THE PERSON RECEIVING THE CHEQUES MUST BRING THEIR IDENTITY CARD ALONG WITH THE REQUEST FORM FOR CHEQUE PURCHASE FOR THE BANK OR THE STATE TREASURY TO PROCESS THE CHEQUE SALE.

1.2. THE BANK OR THE STATE TREASURY SHALL ONLY SELL CHEQUES TO CUSTOMERS WHO HAVE A DEPOSIT ACCOUNT WITH THE BANK OR THE STATE TREASURY.

THE BANK OR THE STATE TREASURY SHALL CHECK THE REQUEST FOR CHEQUE PURCHASE AND THE IDENTITY CARD OF THE PERSON COMING TO PURCHASE THE CHEQUES, AND IF THEY MEET THE REQUIREMENTS, SHALL PROCESS THE CHEQUE SALE FOR THE CUSTOMER:

RECORD THE NAME AND CODE OF THE BANK OR THE STATE TREASURY SELLING THE CHEQUES ON ALL PAGES OF THE CHEQUE BOOK (BANK OR STATE TREASURY SERVING THE CHEQUE ISSUER).

RECORD THE NAME AND ACCOUNT NUMBER OF THE CUSTOMER ON ALL PAGES OF THE CHEQUE BOOK.

ISSUE A DOCUMENT TO COLLECT THE MONEY FROM THE SALE OF CHEQUES, WITH THE CONTENT CLEARLY STATED AS: THE NAME AND ACCOUNT NUMBER OF THE CUSTOMER PURCHASING THE CHEQUES; THE QUANTITY AND IDENTIFICATION (SERIES, PAGE NUMBER OF THE CHEQUE BOOK) OF THE CHEQUE BOOKS SOLD TO THE CUSTOMER, THE AMOUNT OF THE CHEQUE SALE. REQUIRE THE CUSTOMER TO SIGN FOR RECEIPT ON THE CHEQUE DELIVERY DOCUMENT BEFORE HANDING OVER THE CHEQUES TO THE CUSTOMER.

THE BANKS AND THE STATE TREASURY SHALL MONITOR THE QUANTITY AND IDENTIFICATION (SERIES, PAGE NUMBER OF THE CHEQUE BOOK) OF THE CHEQUE BOOKS SOLD TO CUSTOMERS.

1.3. WHEN RECEIVING THE CHEQUES, THE CUSTOMER MUST COUNT AND CHECK EACH CHEQUE PAGE SERIES AND NUMBER, AND THE TOTAL NUMBER OF CHEQUE PAGES IN THE CHEQUE BOOK. RECHECK THE NAME AND ACCOUNT NUMBER OF THE UNIT ENTERED ON EACH CHEQUE PAGE, AND REPORT ANY ERRORS TO THE BANK OR THE STATE TREASURY TO EXCHANGE FOR ANOTHER CHEQUE BOOK.

IF THE PERSON COMING TO PURCHASE THE CHEQUES DOES NOT COUNT THEM, AND SHORTAGES OCCUR OR THE CHEQUES ARE MISUSED, THE ACCOUNT HOLDER SHALL BE FULLY RESPONSIBLE FOR ANY LOSSES THAT RESULT.

2. PROCEDURE FOR ISSUING TRANSFER CHEQUES:

2.1. AFTER ISSUING TRANSFER CHEQUES TO PAY THE SELLER OR SERVICE PROVIDER (REFERRED TO AS THE BENEFICIARY), THE ISSUER MUST COMPLETE ALL REQUIRED INFORMATION ON THE CHEQUE IN ACCORDANCE WITH THE PAYMENT RULES AND GENERAL REQUIREMENTS FOR DOCUMENTATION.

THE CHEQUE SHALL BE DELIVERED DIRECTLY TO THE BENEFICIARY.

THE ACCOUNT HOLDER MAY NOT SIGN AND STAMP CHEQUES THAT DO NOT CONTAIN ALL REQUIRED INFORMATION (BLANK CHEQUES). IF THE ACCOUNT HOLDER VIOLATES THIS PROVISION, LEADING TO CHEQUES BEING MISUSED, THEY SHALL BE LIABLE FOR ANY LOSSES; IF THE BANK OR THE STATE TREASURY DISCOVERS SUCH VIOLATIONS, THEY HAVE THE RIGHT TO REVOKE ALL UNUSED CHEQUES OF THE CUSTOMER.

2.2. THE BENEFICIARY MUST VERIFY THE LEGALITY OF THE TRANSFER CHEQUE (ALL REQUIRED INFORMATION IS COMPLETELY FILLED OUT WITHOUT ANY CORRECTIONS OR ERASURES) AND CHECK THE IDENTITY CARD OF THE PERSON RECEIVING GOODS OR SERVICES BEFORE DELIVERING THEM.

IF THE CHEQUE IS LEGAL, THE BENEFICIARY MUST REQUIRE THE RECEIVER TO SIGN AND WRITE THEIR FULL NAME, IDENTITY CARD NUMBER, AND ISSUE DATE ON THE BACK OF THE CHEQUE.

3. PROCEDURE FOR SETTLING TRANSFER CHEQUES:

3.1. TO SETTLE THE AMOUNT ON THE CHEQUE, THE BENEFICIARY SHALL BASED ON THE CHEQUES, PREPARE TWO COPIES OF THE CHEQUE LIST (IN ACCORDANCE WITH THE MODEL ATTACHED AS ANNEX 1) SEPARATELY FOR EACH BANK OR THE STATE TREASURY SERVING THE PAYEE (EACH BANK OR THE STATE TREASURY SHALL PREPARE A SEPARATE CHEQUE LIST) TO BE SUBMITTED TO THE BANK OR THE STATE TREASURY WHERE THE BENEFICIARY HAS AN ACCOUNT OR TO THE BANK OR THE STATE TREASURY WHERE THE PAYEE HAS AN ACCOUNT.

3.2. UPON RECEIPT OF THE TWO COPIES OF THE CHEQUE LIST ACCOMPANIED BY THE TRANSFER CHEQUES SUBMITTED BY THE BENEFICIARY, THE BANK OR THE STATE TREASURY SHALL CHECK THE LEGALITY OF THE CHEQUE; CHECK THE VALIDITY PERIOD OF THE CHEQUE; COMPARE THE INFORMATION ON THE CHEQUE WITH THE CHEQUE LIST; IF THERE ARE NO ERRORS, THE BANK OR THE STATE TREASURY AND THE CUSTOMER SHALL PROCEED WITH THE SIGNATURE AND ACKNOWLEDGEMENT OF THE CHEQUE (THE CUSTOMER MAY ALSO PREPARE AN ADDITIONAL COPY OF THE CHEQUE LIST TO BE USED AS A RECORD OF RECEIPT AND ISSUE OF DOCUMENTS FOR THE BANK OR THE STATE TREASURY TO SIGN AND ACKNOWLEDGE).

IF THERE ARE ERRORS IN THE CHEQUE LIST OR THE CHEQUES ARE NOT LEGAL OR EXPIRED, THE CHEQUES SHALL BE RETURNED TO THE SUBMITTER AND THE BENEFICIARY SHALL BE REQUIRED TO RE-PREPARE A NEW CHEQUE LIST SUITABLE FOR THE LEGAL CHEQUES.

3.3. IN CASE BOTH THE PAYEE AND THE BENEFICIARY HAVE ACCOUNTS AT THE BANK OR THE STATE TREASURY:

IN ADDITION TO THE CHECKS AS PROVIDED IN POINT 3.2 OF SECTION I/A ABOVE, THE BANK OR THE STATE TREASURY SHALL ALSO CHECK THE FOLLOWING FACTORS: THE NAME AND ACCOUNT NUMBER OF THE PAYEE AND THE BENEFICIARY; THE SIGNATURE AND STAMP ON THE CHEQUE; THE BALANCE OF THE PAYEE'S DEPOSIT ACCOUNT.

IF THE CHEQUE MEETS THE SETTLEMENT CONDITIONS, THE SETTLEMENT DATE, MONTH, YEAR, AND SIGNATURE SHALL BE ENTERED ON THE CHEQUES AND THE CHEQUE LIST COPIES, THEN PROCESSED:

THE TRANSFER CHEQUES SHALL BE USED AS EVIDENCE TO RECORD THE DEBIT OF THE PAYEE'S ACCOUNT.

ONE COPY OF THE CHEQUE LIST SHALL BE USED AS EVIDENCE TO RECORD THE CREDIT OF THE BENEFICIARY'S ACCOUNT.

ONE COPY OF THE CHEQUE LIST WITH THE BANK OR THE STATE TREASURY SEAL SHALL BE USED AS A CREDIT NOTICE SENT TO THE BENEFICIARY.

IF THE PAYEE'S DEPOSIT ACCOUNT DOES NOT HAVE ENOUGH FUNDS TO COVER THE SETTLEMENT (CHEQUE ISSUED EXCEEDS THE BALANCE), THE BANK OR THE STATE TREASURY SHALL RETAIN THE UNSETTLED CHEQUES AND THE CHEQUE LIST FOR MONITORING; HOWEVER, THE LEGAL CHEQUES SHALL BE SETTLED BY THE BANK OR THE STATE TREASURY ISSUING A NEW CHEQUE LIST.

WHEN THE PAYEE'S DEPOSIT ACCOUNT HAS ENOUGH BALANCE, THE FUNDS SHALL BE IMMEDIATELY DRAINED FROM THE ACCOUNT TO COVER THE AMOUNT ON THE CHEQUE AND THE PENALTY.

THE CALCULATION OF THE PENALTY FOR CHEQUES ISSUED EXCEEDING THE BALANCE IS AS FOLLOWS:

ISSUING CHEQUES EXCEEDING THE BALANCE: THE AMOUNT OF THE CHEQUE MINUS THE BALANCE TIMES 30%

exceed = over - account balance x 30%

THE BALANCE ON THE DEPOSIT ACCOUNT IS THE BALANCE AT THE TIME THE BANK OR THE STATE TREASURY RECEIVED THE CHEQUE.

LATE PAYMENT PENALTY:

THE AMOUNT OF THE CHEQUE TIMES THE NUMBER OF DAYS LATE TIMES THE LATE PAYMENT RATE

Amount Number of days Late payment rate

THE NUMBER OF DAYS LATE IS CALCULATED FROM THE DAY THE BANK OR THE STATE TREASURY RECEIVED THE CHEQUE TO THE DAY IT WAS SETTLED.

late check payment

Number of days for late check payment calculated from the date when the bank or state treasury receives the check to the date when the check is paid.

3.4. In cases where both the payer and the payee have accounts at a Bank or State Treasury, which participates in local clearing:

3.4.1. In the case where the payee deposits a cheque with the Bank or State Treasury serving the payer:

a. At the Bank or State Treasury serving the payer, process:

Carry out inspection and procedures to accept the cheque according to the provisions set forth in Points 3.2 and 3.3 of Section I/A above.

Process payment for cheques meeting the conditions for payment.

Use the cheques as debit vouchers for the payer's account.

The cheque listing forms are used to prepare clearing settlement vouchers and are transferred to the Bank or State Treasury serving the payee to credit their account.

For cheques issued exceeding the account balance, handle them according to the provisions set forth in Point 3.3 of Section I/A above.

b. At the Bank or State Treasury serving the payee, process:

Receive cheque listing forms (through clearing).

Process payment to the payee.

ONE COPY OF THE CHEQUE LIST SHALL BE USED AS EVIDENCE TO RECORD THE CREDIT OF THE BENEFICIARY'S ACCOUNT.

One copy of the cheque listing form serves as a credit notification sent to the payee.

3.4.2. In the case where the payee deposits a cheque with the Bank or State Treasury where they have an account:

c. At the Bank or State Treasury serving the payee, process:

Carry out inspection and procedures to accept the cheque according to the provisions set forth in Point 3.2 of Section I/A above.

Directly transfer the cheques and cheque listing forms to the Bank or State Treasury serving the payer.

The handover of cheques between Banks or State Treasuries must be recorded in a tracking log and signed off.

Upon receiving payment settlement documents (through clearing) transferred from the Bank or State Treasury serving the payer, process according to the provisions set forth in Point 3.4.1.b of Section I/A above.

b. At the Bank or State Treasury serving the payer, process:

Upon receiving the cheques and cheque listing forms transferred from the Bank or State Treasury serving the payee:

Inspect the cheques and cheque listing forms according to the provisions set forth in Points 3.2 and 3.3 of Section I/A above.

Process payment for cheques meeting the conditions for payment and handle according to Point 3.4.1.a of Section I/A above.

 

II. GUARANTEED CHEQUES

1. Procedures for issuing guaranteed cheques

1.1. Each time there is a need to make payments using guaranteed cheques, the account holder (payer) prepares three copies of the mandate form along with the transfer cheque fully filled out, containing all necessary stamps and signatures on the front of the cheque, and directly submits it to the Bank or State Treasury where they have an account. The Bank or State Treasury will then proceed with the guarantee procedure for the cheque.

1.2. After the Bank or State Treasury serving the payer checks the mandate form and the cheque, the account balance of the customer, if sufficient, will process the guarantee for the cheque and handle:

Record the account number for Debit and Credit on each copy of the mandate form.

Record the account number for Debit in the designated place on the front of the cheque.

Sign and stamp the date on the back of the cheque.

Stamp the word "guaranteed" on the front of the cheque.

Hand over the completed guaranteed cheque to the customer.

Handle the mandate form copies:

One copy of the mandate form serves as a debit voucher for the payer's account.

One copy of the mandate form serves as a debit notification sent to the payer.

One copy of the mandate form serves as a credit voucher for the deposit account to ensure the payment of the guaranteed cheque.

1.3. When receiving guaranteed cheques, the payee must check the validity of the cheque and verify the stamps and signature of the Bank or State Treasury that guaranteed the cheque.

2. Procedures for paying guaranteed cheques:

2.1. If both the payer and the payee have accounts at the same Bank or State Treasury, the payment procedures are handled as per the transfer cheque payment regulations stipulated in Point 3.3 of Section I/A above.

2.2. If both the payer and the payee have accounts at Banks or State Treasuries participating in local clearing:

a. If the payee deposits the cheque with the Bank or State Treasury that guaranteed the cheque, handle it as per the transfer cheque payment regulations stipulated in Point 3.4.1 of Section I/A above.

b. If the payee deposits the cheque with the Bank or State Treasury serving themselves, handle:

At the Bank or State Treasury serving the payee:

Check the validity of the cheque and the cheque listing form, the stamps and signature of the Bank or State Treasury that guaranteed the cheque, if the cheque meets the conditions for payment, handle:

One copy of the cheque listing form serves as a credit voucher for the payee's account.

One copy of the cheque listing form serves as a credit notification sent to the payee.

Use the guaranteed cheques to prepare clearing settlement vouchers and transfer them to the Bank or State Treasury that guaranteed the cheque for payment.

The Bank or State Treasury serving the payee decides to credit the payee immediately. If not credited immediately, the Bank or State Treasury serving the payee will process the transfer of the cheque and cheque listing form to the Bank or State Treasury that guaranteed the cheque for payment as per the transfer cheque regulations stipulated in Point 3.4.2 of Section I/A above.

At the Bank or State Treasury that guaranteed the cheque:

Check the guaranteed cheques, if they are for the unit that was guaranteed, use the cheques as debit vouchers for the deposit account to ensure the payment of the guaranteed cheque.

If the cheques were not guaranteed by the unit, refuse payment and process a debit at the Bank or State Treasury serving the payee. 2.3. If both the payer and the payee have accounts at Banks or State Treasuries within the same system, the payment procedures are detailed by the General Director of the Bank or the Director of the State Treasury Bureau for subordinate units to follow.

 

III. FIXED AMOUNT CHEQUES

1.1. When there is a need to open a fixed amount cheque book, the account holder writes a request to purchase fixed amount cheques along with three copies of the mandate form to draw funds to open a fixed amount cheque book and submit it to the Bank or State Treasury where they have an account.

1.2. After the Bank or State Treasury where the fixed amount cheque book is opened checks the request to purchase fixed amount cheques and the mandate form of the customer, if sufficient, will issue documents to collect payment for selling cheques, and simultaneously process the opening of the fixed amount cheque book:

Record the account number for the deposit guarantee to cover the issuance of fixed amount checks on all fixed amount check forms.

Enter the total amount of the fixed amount check book opening balance and the payment validity period of the fixed amount check book on the cover page of the checkbook, then sign and stamp the Bank and State Treasury at the designated place.

Have the customer sign on the delivery voucher for the fixed amount check book, then deliver the fixed amount check book to the customer and process it.

One copy of the payment authorization serves as the debit entry voucher for the customer's account that opened the fixed amount check book.

One copy of the payment authorization is sent to the customer who opened the fixed amount check book as a notice of debit. + One copy of the payment authorization serves as the credit entry voucher for the deposit account to guarantee the payment of fixed amount checks.

2. Procedures for issuing fixed amount checks:

When issuing fixed amount checks, the payer may only issue within the available balance of the check book.

The procedure for issuing fixed amount checks is carried out like the issuance of transfer checks, with the addition of recording the remaining balance of the fixed amount check book on the stub of each issued fixed amount check.

Fixed amount checks are directly handed over to the beneficiary.

Upon receiving fixed amount checks from the payer, the beneficiary must verify the validity of the check and compare the amount on the check with the remaining balance of the fixed amount check book (if necessary, inquire the bank where the fixed amount check book was opened before accepting the check and delivering goods). If conditions are met, accept the check and deliver the goods.

3. Procedures for settling fixed amount checks:

The settlement procedures for fixed amount checks are carried out according to the procedures for settling guaranteed checks as stipulated in Point 2, Section II/A above.

4. Closing the fixed amount check book:

When the fixed amount check book expires or when the customer wishes to close it before its expiration date, the customer returns the fixed amount check book (including all undistributed fixed amount checks if any) to the Bank or State Treasury.

Upon receipt of the fixed amount check book, the Bank or State Treasury must reconcile and verify the number of distributed checks, the number of undistributed checks, then cross out (X) all checks to invalidate them and prepare three copies of the transfer voucher to settle the deposit account guaranteeing the payment of fixed amount checks, transferring any remaining balance (if any) to the account of the person who opened the fixed amount check book.

5. Handling cases of issuing fixed amount checks exceeding the balance:

When the customer issues fixed amount checks exceeding the balance, the Bank or State Treasury where the fixed amount check book was opened calculates and records the penalty for issuing checks beyond the balance and the late payment penalty as specified in Point 3.3, Section I/A above for overdraft transfer checks, while simultaneously notifying the customer to immediately return the check book along with any remaining undistributed fixed amount checks for recovery and processing to invalidate the undistributed checks (cross out the back of the checks).

 

IV. INDIVIDUAL CHECKS

1. Procedures for selling individual checks:

When purchasing checks, the account holder submits a request for purchase of checks directly to the Bank where their account is opened. The Bank processes the sale of individual checks to the customer as when selling transfer checks as stipulated in Point 1, Section I/A above.

Additionally, the account holder must record the following elements: name, date and place of issuance of the ID card, address on the back of the check as designated for the Bank to verify before delivering the check to the customer.

2. Procedures for issuing individual checks:

2.1 For individual checks with amounts up to 5 (five) million VND:

The account holder issues the check and pays directly to the beneficiary. The procedure for issuing individual checks is carried out like the procedure for issuing transfer checks and the procedures stipulated in Point 19.4, Article 19 of the Non-Cash Payment Rules.

When receiving individual checks from the issuer, the beneficiary must request the issuer to present the ID card recorded on the back of the check. If correct, the beneficiary requests the issuer to sign in the designated place. The issuer must sign matching the sample signature registered at the Bank. In case of lack of trust in the issuer, the beneficiary can inquire the Bank serving the issuer before accepting the check.

2.2 For individual checks with amounts over 5 (five) million VND, the account holder must visit the Bank where their account is opened to process a guaranteed check.

The procedure for guaranteeing individual checks is carried out as the procedure for issuing guaranteed checks as stipulated in Point 1, Section II/A above.

3. Procedures for settling individual checks:

The procedures for settling individual checks are carried out according to the regulations for transfer checks and guaranteed checks as stipulated in Point 3, Section I/A and Point 2, Section II/A above.

 

B. PAYMENT BY AUTHORIZATION TO PAY - TRANSFER

 

I. AUTHORIZATION TO PAY

1. Procedures for issuing an authorization to pay

The payer prepares four copies of the authorization to pay and submits them to the Bank or State Treasury serving them (where the deposit account is opened) to deduct funds from their deposit account to pay the beneficiary. On the authorization to pay, the payer must accurately fill in all required elements, ensure consistency between all copies of the authorization to pay, and sign and stamp all copies.

2. Procedures for settling an authorization to pay:

2.1 At the Bank or State Treasury serving the payer:

Upon receiving the authorization to pay submitted by the customer, the Bank or State Treasury verifies the issuance procedures, the account balance of the depositor before processing the payment.

If there are errors in the issuance such as incorrect or incomplete entries, missing signatures or stamps of the customer, or insufficient funds in the depositor's account to make the payment, the authorization to pay will be returned to the customer.

If the authorization to pay meets the conditions for payment, the Bank or State Treasury will record the date, account number for debit and credit (on all four copies of the authorization to pay if both the payer and the beneficiary have accounts at the same Bank or State Treasury; on two copies of the authorization to pay used as debit entry vouchers and notice of debit if the beneficiary has an account at another Bank or State Treasury); sign on all copies and process accordingly.

a. In the case where both the payer and the beneficiary have accounts at the same Bank or State Treasury, the following actions are taken:

One copy of the authorization to pay serves as the debit entry voucher for the payer's account.

One copy of the authorization to pay is used as a notice of debit sent to the payer.

One copy of the authorization to pay serves as the credit entry voucher for the beneficiary's account.

On the debit notice and credit notice sent to customers, the Bank and State Treasury shall affix their seals at the designated place (on the signature of the Bank or State Treasury).

b. In the case where the beneficiary has an account with another Bank or State Treasury:

The two copies of the payment order shall be processed as stipulated in point a above, while the two copies of the payment order for the paying Bank or State Treasury shall serve as the basis for establishing settlement documents to settle with the Bank or State Treasury serving the beneficiary according to the following cases:

Establish a net settlement document with the participating Bank or State Treasury within the province/city to credit the account of the beneficiary or transfer through inter-bank settlement to other Banks or State Treasuries in the system (where the beneficiary has an account) to credit the beneficiary's account.

Establish a settlement document with the Bank or State Treasury in the system to credit the account of the beneficiary or establish a net settlement document with the Bank or State Treasury serving the beneficiary to credit the beneficiary's account.

Establish a settlement document through the Central Bank on the local level to credit the account of the beneficiary or transfer funds to the Central Bank in another province/city to credit the beneficiary's account.

2.2. At the Bank or State Treasury serving the beneficiary:

Upon receipt of the settlement document transferred from the Bank or State Treasury serving the payer, after reviewing the document, if it meets the conditions for payment, the Bank or State Treasury serving the beneficiary shall record the date, ledger, debit and credit account numbers, sign on the document, and use the payment order copies or settlement documents established by the Bank or State Treasury serving the beneficiary (in the case where the Bank or State Treasury serving the payer does not directly transfer the payment order copies to the Bank or State Treasury serving the beneficiary) to credit the beneficiary's account and send a credit notice to the beneficiary.

If the beneficiary does not have an account, the Bank or State Treasury serving the beneficiary shall credit the payable account and notify the beneficiary to collect the money.

 

II. TRANSFER CHEQUE

1. Procedures for issuing a transfer cheque:

1.1. When there is a need to transfer money using a transfer cheque, the customer submits three copies of the payment order to the Bank or State Treasury to withdraw from their deposit account or two copies of the cash deposit slip or bank draft payment slip; the content of the document must clearly state: Name, number, date of issue, place of issuance of the ID card of the person holding the transfer cheque; the payment details of the transfer cheque.

1.2. At the Bank or State Treasury transferring money:

Upon receipt of the payment order or cash deposit slip/bank draft payment slip submitted by the customer, after checking the procedures for preparing the document, verifying the ID card of the person holding the transfer cheque, and confirming that the balance in the customer's deposit account is sufficient for payment or that the required cash or bank draft has been received, if all conditions are met, the Bank or State Treasury will proceed to issue the transfer cheque to the customer.

The Bank or State Treasury must directly write the transfer cheque. All necessary elements, security symbols, signatures, and stamps of the Bank or State Treasury must be affixed in the designated places on the cheque.

A transfer cheque can be issued in two versions including the original and duplicate or only one version (the original). Both the original and duplicate contain identical information but only the original is valid for payment to the holder of the cheque, while the duplicate serves as an internal settlement document between the paying Bank or State Treasury and the issuing Bank or State Treasury. Depending on the settlement procedures among Banks or State Treasuries, the General Directors of Banks or the Heads of State Treasuries may decide whether to issue duplicates of transfer cheques or not, to ensure uniform application within their respective systems.

Require the recipient of the cheque to sign on the back of the cheque stub before delivering the cheque to the customer.

Process the payment order or cash deposit slip/bank draft payment slip as follows:

If it is a payment order:

One copy of the payment order serves as the debit document for the customer's transfer account.

One copy of the payment order serves as the debit notice sent to the customer.

One copy of the payment order serves as the credit document to ensure the settlement of the transfer cheque.

If it is a cash deposit slip or bank draft payment slip:

One copy is used as the collection document to debit the cash account at the treasury or the bank draft account at the treasury and credit the deposit account to ensure the settlement of the transfer cheque.

One copy serves as a receipt sent to the customer.

2. Procedures for settling a transfer cheque.

2.1. At the paying Bank or State Treasury:

Upon receipt of the transfer cheque directly submitted by the customer, the Bank or State Treasury shall check the elements of the cheque, security symbols, validity period of the cheque, and compare the name, number, date of issue, and place of issuance of the ID card recorded on the cheque with the ID card of the cheque holder, the stamp and signature of the Bank or State Treasury issuing the transfer cheque. Only if these are complete and correct will the payment be made to the cheque holder.

The cheque holder must record the usage request and sign in the designated place on the back of the cheque.

Based on the cheque holder's usage request (cash, bank draft, or transfer), make the corresponding payment to the customer.

Carry out the payment procedures for the customer (cash, bank draft, or transfer).

Issue a debit notice to the Bank or State Treasury that issued the transfer cheque.

The original transfer cheque shall be retained by the paying Bank or State Treasury.

2.2. At the Bank or State Treasury issuing the transfer cheque:

Upon receipt of the debit notice from the paying Bank or State Treasury, the Bank or State Treasury issuing the transfer cheque shall verify and reconcile the cheque number and amount. If confirmed as issued by itself, it shall settle the transfer cheque by debiting the deposit account to ensure the settlement of the transfer cheque and crediting the inter-bank account.

 

C. PAYMENT BY COLLECTION ORDER

1. PROCEDURE FOR COLLECTION ORDER:

The beneficiary shall prepare four copies of the collection order accompanied by invoices and delivery documents for services provided, to submit to the Bank or State Treasury serving them, or directly to the Bank or State Treasury serving the payer. On the collection order, the beneficiary must fully complete all required elements and sign and stamp their unit on all copies of the collection order.

The beneficiary is responsible for monitoring the payment of issued collection orders to coordinate with the Bank or State Treasury serving the payer to urge timely payment from the payer.

2. PROCEDURE FOR PAYMENT OF COLLECTION ORDER:

2.1. CASE WHERE THE BENEFICIARY AND PAYER HAVE ACCOUNTS IN THE SAME BANK OR STATE TREASURY:

Upon receiving the four copies of the collection order accompanied by invoices and delivery documents submitted by the beneficiary, the Bank or State Treasury shall check the procedure for issuing the collection order and verify that the payer and beneficiary have agreed to payment by collection order. If the conditions for payment are met, the date and year of receipt shall be recorded on all copies of the collection order, and the Bank or State Treasury shall sign and stamp the documents with the customer.

a. IF THE BALANCE OF THE PAYER'S ACCOUNT IS SUFFICIENT FOR PAYMENT:

One copy of the collection order serves as the debit entry for the payer's account.

One copy of the collection order, along with invoices and delivery documents, serves as a notice of debit sent to the payer.

One copy of the collection order serves as the credit entry for the beneficiary's account.

One copy of the collection order serves as a notice of credit sent to the beneficiary.

b. IF THE BALANCE OF THE PAYER'S ACCOUNT IS INSUFFICIENT FOR PAYMENT:

The unpaid collection order shall be filed in the record and the payer shall be informed to take measures for payment. When the payer's account has sufficient funds for payment, the payment date shall be recorded on the collection order to proceed with payment and calculate late payment penalties against the payer as specified in point 3.3 section I/A above.

2.2. CASE WHERE THE PAYER AND BENEFICIARY HAVE ACCOUNTS IN DIFFERENT BANKS OR STATE TREASURIES (WITHIN THE SAME SYSTEM OR DIFFERENT SYSTEMS):

a. AT THE BANK OR STATE TREASURY SERVING THE BENEFICIARY:

The acceptance and control of the collection order shall be carried out according to the provisions in point 2.1 above. Subsequently, the Bank or State Treasury serving the beneficiary shall sign and stamp, record in the tracking book for received collection orders (used as a basis for searching and handling lost or delayed documents), and send all four copies of the collection order along with invoices and delivery documents to the Bank or State Treasury serving the payer.

Upon receiving the payment documents for the collection order from the payer's Bank or State Treasury, these documents shall be used to debit the incoming account, settlement account, or deposit account at the Central Bank, credit the beneficiary's account, and send a notice of credit to the beneficiary.

b. AT THE BANK OR STATE TREASURY SERVING THE PAYER:

Upon receiving the four copies of the collection order accompanied by invoices and delivery documents from the beneficiary's Bank or State Treasury or directly from the beneficiary, the Bank or State Treasury shall check the issuance of the collection order and verify that the payer and beneficiary have agreed to payment by collection order. Then, if the conditions for payment are met, the Bank or State Treasury shall process the deduction from the payer's deposit account to transfer funds to the Bank or State Treasury serving the beneficiary for payment to the beneficiary as stipulated in point 2.1.b section I/B above.

If the payer's deposit account does not have sufficient funds for payment, it shall be handled as specified in point 2.1.b section C above.

 

D. PAYMENT BY LETTER OF CREDIT

1. PROCEDURE FOR OPENING A LETTER OF CREDIT:

1.1. WHEN THERE IS A NEED FOR PAYMENT BY LETTER OF CREDIT, THE PAYER SHALL PREPARE FIVE COPIES OF THE LETTER OF CREDIT APPLICATION FORM, COMPLETE WITH ALL REQUIRED INFORMATION, AND SUBMIT IT TO THE BANK WHERE THEY HAVE AN ACCOUNT.

The payer shall prepare a sample signature registration form for the authorized person to receive goods, specifying their full name, position, ID number, date of issue, place of issuance, and the sample signature of the authorized person, the signature of the account holder, and the stamp of the payer. The authorized person to receive goods shall submit this form to the Bank serving the beneficiary (the Bank that will settle the letter of credit) as a basis for verification and comparison during the letter of credit settlement.

1.2. AT THE BANK SERVING THE PAYER:

The Bank serving the payer shall open a letter of credit for the customer when the beneficiary has an account in the same banking system. If the beneficiary has an account in a different banking system, the Bank shall only open a letter of credit if there is a bank in the same system operating in that area and participating in inter-bank clearing.

Upon receiving the application form for the letter of credit, the Bank serving the payer shall process:

Checking the procedure for issuing the letter of credit application form.

Recording the date and year of receipt and account number on the first three copies of the letter of credit application form.

Signing and stamping all copies of the letter of credit application form.

Marking the confidential code on the letter of credit application form.

Processing the letter of credit application form:

One copy of the letter of credit application form serves as the debit entry for the payer's account.

One copy of the letter of credit application form serves as a notice of debit sent to the payer.

One copy of the letter of credit application form serves as the credit entry for the letter of credit deposit account.

Two copies of the letter of credit application form shall be sent to the Bank serving the beneficiary (the Bank in the same system where the beneficiary has an account or operates).

2. PROCEDURE FOR SETTLEMENT OF LETTER OF CREDIT:

2.1. FOR THE BENEFICIARY:

After receiving the letter of credit application form from the payer through the Bank serving them (the Bank that will settle the letter of credit), the beneficiary shall compare it with the contract or purchase order, check the collection order for receiving goods, and verify the identity card of the receiver. If everything is correct, they shall deliver the goods and request the receiver to sign the invoice or delivery document.

Based on the invoice and delivery documents, the beneficiary establishes four copies of the invoice and delivery document list (according to Model 2 in the Appendix) and submits them to the serving bank for payment of the sale proceeds. On this list, the beneficiary must sign, stamp the unit, and have the signature confirmation of the receiver regarding the total amount paid to the beneficiary.

2.2. For the serving bank of the beneficiary:

a. Upon receiving two copies of the letter of credit opening form sent by the serving bank of the payer, proceed to check the procedures for establishing the letter of credit opening form, the code, seal, and signature of the issuing bank, then record the receipt date, sign, and stamp the unit on all copies of the letter of credit opening form, and send one copy to the beneficiary as the basis for delivery, while keeping one copy and opening a tracking ledger for incoming letters of credit.

b. Upon receiving four copies of the invoice and delivery document list submitted by the beneficiary, the bank checks the procedures for establishing the invoice and delivery document list; compares the signature of the authorized receiver on the invoice and delivery document list with the sample signature registration; checks the validity period of the letter of credit; the amount requested for payment by the beneficiary within the scope of the letter of credit opening amount; if correct, process as follows:

Record in the ledger of incoming letters of credit that have been paid.

Record the payment date, month, year, and account number debit-credit on two copies of the invoice and delivery document list and use it as accounting documentation at the serving bank of the beneficiary.

One copy of the invoice and delivery document list, together with the retained copy of the letter of credit opening form that has been paid, serves as the credit entry documentation for the beneficiary's account.

One copy of the invoice and delivery document list serves as the credit notification sent to the beneficiary.

In case the beneficiary maintains an account at another bank in the same area, based on the invoice and delivery document list, prepare the settlement documentation to offset with the bank where the beneficiary maintains an account to credit the beneficiary's account.

Based on the invoice and delivery document list, prepare the debit notification for the payer's bank to debit the payer's account (the debit notification includes two copies of the invoice and delivery document list) for payment.

2.3. For the serving bank of the payer:

Upon receiving the debit notification for the payer's bank to pay the letter of credit from the serving bank of the beneficiary, after checking the procedures for preparing the documentation and the content of the documentation, if correct, process as follows:

One copy of the invoice and delivery document list serves as the debit entry documentation for the letter of credit deposit account.

One copy of the invoice and delivery document list serves as the debit notification sent to the payer.

The debit notification serves as the credit entry documentation for the incoming payer's account.

The letter of credit only pays once. Therefore, after completing the payment, if there is still money remaining in the letter of credit deposit account,

The bank prepares a transfer voucher to close out this account and processes as follows:

The debit transfer voucher serves as the debit entry documentation for the letter of credit deposit account.

The credit transfer voucher serves as the credit entry documentation for the payer's account.

Send a credit notification to the payer.

 

E. PAYMENT ORDER PROCEDURES

1. Procedures for collecting payment orders:

1.1. For customers:

When there is a need to use payment orders, the account holder prepares the collection documentation for payment orders (which can be a cash withdrawal check stamped or marked: "collect payment order") and directly submits it to the bank or state treasury where they maintain an account to withdraw funds from their deposit account (or borrow from the bank) to receive payment orders.

For customers without a deposit account at the bank or state treasury, they prepare a payment submission form and submit money to the bank or state treasury; the content of the payment submission form clearly states: deposit cash to receive payment orders.

1.2. For banks and state treasuries:

In cases where customers request withdrawals from their deposit accounts or are granted loans by the bank:

Upon receiving the collection documentation for payment orders submitted by the customer, the bank or state treasury checks the procedures for preparing the documentation and the balance of the customer's deposit account, if conditions are met, they process the issuance of payment orders to the customer as per the cash disbursement procedures. The collection documentation for payment orders is used to debit the customer's deposit or loan account and credit the payment order account at the entity.

In cases where customers deposit cash to receive payment orders:

Proceed with cash collection according to the current procedures.

After collecting cash, prepare a disbursement voucher to issue payment orders to the customer (using the current disbursement voucher).

2. Procedures for submitting payment orders:

2.1. For customers:

Prepare a payment order submission form (which can be a current cash submission form stamped or marked: "submit payment order") accompanied by a detailed list indicating: type of payment order (by denomination), quantity of each type, total value of the submitted payment orders to the bank or state treasury.

2.2. At the bank or state treasury receiving payment orders:

Upon receiving the payment order submission form along with the detailed list and the submitted payment orders from the customer, the bank or state treasury checks the procedures for preparing the payment order submission form and the payment orders, ensuring that the detailed list matches the submitted payment orders accurately.

The procedure for receiving (collecting) payment orders is carried out according to the current cash collection procedures.

In cases where customers submit payment orders to credit their deposit account or repay borrowed money, process as follows:

One copy of the payment order submission form serves as the debit entry documentation for the payment order account at the entity and credits the customer's deposit or loan account.

One copy of the payment order submission form serves as the credit notification sent to the customer.

In cases where customers submit payment orders to reconcile cash:

Follow the procedures for collecting payment orders as specified above.

Follow the procedures for disbursing cash to the customer (prepare a disbursement voucher).

In cases where customers submit payment orders to the bank or state treasury to request a transfer to the bank or state treasury where they maintain an account to credit their own account, process as follows:

At the Bank, the State Treasury receives payment drafts and performs the procedures to collect payment drafts according to the above regulations. Subsequently, it carries out the procedures to transfer funds to the Bank. The State Treasury then credits the account of the person who submitted the payment draft at the State Treasury.

The procedure for transferring funds is carried out like the collection of a mandate payment.

3. Recovery of payment drafts that have lost their circulation value:

3.1. When payment drafts are approaching the end of their circulation period (the circulation period is printed on the payment draft), customers holding payment drafts must submit them to the Bank or the State Treasury no later than the last day of the circulation period to credit their deposit accounts or exchange them for cash or payment drafts still within their circulation period.

The procedure for submitting payment drafts to the Bank or the State Treasury is carried out as stipulated in point 2 of section E above.

3.2. Within a maximum of 15 days from the date when the payment draft expires, financial institutions and the State Treasury must submit all expired payment drafts they are holding to the Central Bank where their accounts are opened for settlement.

The procedure for submitting expired payment drafts is carried out like the submission of payment drafts still in circulation, but financial institutions and the State Treasury must prepare separate submission forms for each type of expired payment draft.

 

G. PAYMENT BY PAYMENT CARD

1. Issuance procedures for payment cards:

1.1. For customers:

When there is a need to use a payment card, the customer prepares and submits to the issuing bank a request form for issuance of a payment card (according to the model prescribed by the issuing bank). The request form for issuance of a payment card includes the following main contents: Name of the issuing bank; Name and address of the customer requesting the issuance of the card; Surname, name, number, and date of birth of the identification card of the card user; Type of card; Credit limit of the card; Account number for card payments (account debited when the customer uses money from the card); Date, month, year of the request form; Signature and stamp (if any) of the customer requesting the issuance of the card.

If using a secured payment card, the customer must also submit a mandate to deduct funds from their deposit account or submit cash or payment drafts to secure funds in the payment card account at the issuing bank.

1.2. For the issuing bank:

Based on the customer's request form for issuance of a payment card, after checking the issuance documentation and the conditions for using the card, if the conditions are met, the issuing bank will carry out the following procedures to issue the card to the customer:

a. Perform the procedures to debit the customer's account or collect cash or payment drafts to secure funds in the payment card account (account number 3823 in the current accounting system of financial institutions) for secured payment cards or set the credit limit for the card for debit cards and credit cards.

b. Collect the card issuance fee (card sale price).

c. Issue the payment card.

A payment card contains the following main elements:

Name of the issuing bank.

Card number.

Date, month, year of card issuance.

Surname, name of the card user.

Identification card number of the card user.

Account number for card payments.

Credit limit of the card.

Validity period of the card.

Bank code.

User's card password.

The issuance of payment cards must be performed by a specialized department of the issuing bank equipped with dedicated machines to ensure technical requirements and security to prevent counterfeit cards and other loopholes that could cause property damage.

d. Deliver the payment card and the card usage password to the customer and guide the customer on how to use the card for payments.

The issuing bank must manage and keep the customer's card usage password strictly confidential. When delivering the card usage password to the customer, it must be placed in a sealed envelope marked "confidential" and only the card user should know the password and must keep it secret without disclosing it to others.

Upon receiving the payment card, the customer must sign for receipt with the issuing bank.

d. Prepare records to track issued payment cards.

2. Payment procedures for goods and services at establishments accepting payment by card:

Accepting payment by card must be based on an agreement between the issuing bank or the card processing bank and the establishment accepting payment by card.

The issuing bank or the card processing bank must provide full guidance on the card payment process to establishments accepting payment by card.

At establishments accepting payment by card, there must be dedicated machines for card payments.

When making a payment, the card user presents their identification card and hands over the card to the establishment for verification, inserts the card into the card payment machine, and both parties must follow the card payment procedures as guided by the issuing bank.

After verifying that the card meets the payment conditions, the machine automatically records the payment amount and prints a payment receipt. The payment receipt is made in three copies, the card user must sign on the payment receipt and it is used as follows:

One copy is given to the card user along with the payment card.

One copy is kept at the establishment accepting payment by card.

One copy accompanies the list of payment receipts (prepared by the establishment accepting payment by card at the end of the day or the end of the payment cycle and sent to the card processing bank for settlement).

Upon receiving the payment receipt accompanied by the list mentioned above from the establishment accepting payment by card, after verifying that the payment conditions are met, the card processing bank is responsible for immediately settling the payment to the establishment accepting payment by card.

The settlement between the card processing bank and the issuing bank regarding the payment amount to the establishment accepting payment by card is carried out according to the agreement between the two parties through the inter-bank settlement procedures.

3. Procedures for receiving cash at the card processing bank:

When needing to withdraw cash, the card user presents the card along with their identification card to the card processing bank.

The agency bank inserts the card into the card payment machine, enters the amount requested by the customer, and if the conditions for payment are met, the machine will automatically generate a payment receipt. The payment receipt is made in two copies for use:

One copy serves as a cash disbursement voucher.

One copy is given to the card user along with the payment card and cash. Upon receiving the full amount, the card user must sign on the payment receipt.

The procedure for the agency bank to settle with the issuing bank regarding the cash paid to the card user shall be carried out as stipulated in point 2 above.

4. Procedures for changing the payment limit of the card and extending the card usage period:

4.1. Procedure for changing the payment limit of the card:

When the card's payment limit has been exhausted and there is a need to continue using it, the card user prepares a request form to increase the card's payment limit (in accordance with the model prescribed by the issuing bank) together with the card and submits it to the issuing bank. For a secured payment card, the card user also prepares a payment authorization form to deduct funds from their deposit account or submit additional cash, negotiable instruments for deposit into the payment card account at the issuing bank.

After reviewing the documentation and accepting the customer's request, the issuing bank (card issuance management department) uses a dedicated machine to update the card's payment limit and then returns the card to the customer.

In cases where the cardholder wishes to withdraw some of the deposited funds to pay off the card (for a secured payment card), the card user prepares a request form to reduce the card's payment limit (in accordance with the model prescribed by the issuing bank) together with the card and submits it to the issuing bank.

After reviewing the documentation and confirming that the remaining balance matches the records, the issuing bank (card issuance management department) uses a dedicated machine to reduce the card's payment limit and generates a payment receipt for the withdrawn amount. The card user must sign to confirm on the payment receipt. The issuing bank uses the payment receipt as evidence to debit the card payment account and credit the customer's account (previously debited for depositing funds into the card payment account) and provides a copy of the payment receipt to the customer along with the card.

4.2. Procedure for extending the card usage period.

When the card usage period expires and there is a need to continue using it, the card user prepares a request form to extend the card usage period (in accordance with the model prescribed by the issuing bank) together with the card and submits it to the issuing bank.

After reviewing the documentation and accepting the customer's request, the issuing bank (card issuance management department) uses a dedicated machine to extend the card usage period and then returns the card to the customer.

 

PART III

PAYMENTS BETWEEN BANKS AND TREASURY DEPARTMENTS

STATE

1. Single payments through accounts opened by banks and treasury departments at the State Bank:

1.1. At the State Bank, the paying entity:

a. For payments made by the bank or treasury department itself (as the paying entity), the bank or treasury department prepares and submits payment vouchers to the State Bank where the account is held to process the payment according to Part II of this Circular.

b. For payments made by customers, the bank or treasury department additionally prepares a list of payment vouchers through State Bank accounts (according to Model 3 in the Appendix) and submits it to the State Bank along with the customer's payment vouchers. The list of payment vouchers is prepared separately for each beneficiary bank or treasury department; four copies are prepared if both the beneficiary bank or treasury department and the paying bank or treasury department have accounts at the same State Bank unit; two copies are prepared if the beneficiary bank or treasury department has an account at another State Bank.

Upon receiving the list of payment vouchers submitted by the paying bank or treasury department along with the accompanying payment vouchers, after verifying that the vouchers meet the payment conditions, the State Bank proceeds to make the payment immediately and processes the vouchers as follows:

If the beneficiary bank or treasury department maintains an account with the same State Bank:

One copy of the list of payment vouchers serves as evidence to debit the account of the paying bank or treasury department.

One copy of the list of payment vouchers serves as a notice of debit sent to the paying bank or treasury department.

One copy of the list of payment vouchers serves as evidence to credit the account of the beneficiary bank or treasury department.

One copy of the list of payment vouchers serves as a notice of credit along with the customer's payment vouchers sent to the beneficiary bank or treasury department.

If the beneficiary bank or treasury department maintains an account at another State Bank:

The paying State Bank uses two copies of the list of payment vouchers as evidence to debit the account and send a notice of debit to the paying bank or treasury department as specified above and prepares a notice of credit based on the customer's payment vouchers to send to the beneficiary State Bank.

1.2. Beneficiary State Bank:

Upon receiving the notice of credit, after verification and processing the vouchers according to the inter-bank settlement regulations, the beneficiary State Bank credits the account and sends a notice of credit to the beneficiary bank or treasury department.

Based on the notice of credit from the State Bank, the beneficiary bank or treasury department debits its account at the State Bank, credits the beneficiary's account, and sends a notice of credit to the customer.

2. Inter-bank netting settlements within provinces and cities, organized and conducted by the provincial or city State Bank:

Inter-bank netting settlements within provinces and cities, organized and conducted by the provincial or city State Bank, shall be carried out according to the rules and technical procedures for inter-bank netting settlements issued by the Governor of the State Bank under Decision No. 181/NH-QĐ dated October 10, 1991, and the implementing guidelines issued by the Central State Bank.

3. Direct netting settlement between two or more Banks within a district without a State Bank branch:

The Banks and Treasury on the territory shall select one unit as the Host Bank, and other units as Member Banks. The Member Banks must open deposit accounts at the Host Bank to carry out netting settlement.

The netting settlement shall be conducted as provided for in point 2 above.

4. Payment through agency collection and payment services among Banks:

4.1. Opening deposit accounts with another Bank for transaction purposes: Payment through deposit accounts with another Bank shall be carried out as in the case where Banks open deposit accounts with the State Bank.

4.2. Entrusted agency collection and payment services among Banks that have payment relationships with each other under entrustment contracts:

Agency collection and payment services among Banks shall only be conducted within the scope of payments agreed upon and stipulated in the entrustment contracts between the Banks. Each time agency collections or payments arise, the Bank where they occur must send payment documents to the related Bank for accounting records. At the end of each settlement period, the Banks must reconcile their figures with each other, settle the amounts collected or paid on behalf of each other, and settle the differences owed to or by each other.

 

PART IV

IMPLEMENTATION

1. Based on the Non-Cash Payment Rules and this Circular, the General Directors of Commercial Banks, Development Banks, Branches of Foreign Banks, Joint Venture Banks, and the Heads of the National Treasury Departments are responsible for guiding and organizing the implementation for their subordinate units and customers, ensuring timely, swift, accurate, and secure payments.

2. This Circular takes effect from the date of issuance and the following documents cease to be effective:

Circular No. 110/NH-TT dated August 20, 1991 guiding the implementation of the Bank Payment Rules;

Circular No. 15/TT-NH1 dated November 12, 1992 guiding the implementation of the rules for the issuance and use of Payment Bills;

Any provisions in other documents issued prior to this Circular that conflict with it shall also cease to be effective./.