Decision No. 1160/2004/QD-NHNN on Issuing the Regulation on Savings Deposits

Pursuant to …;

On the issuance of the Savings Deposit Regulations

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam dated June 6, 2003;

Pursuant to the Law on Credit Organizations dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations dated June 15, 2004;

Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of ministries and ministerial-level agencies;

Pursuant to the proposal of the Director of the Monetary Policy Department,

DECISION:

Article 1. The Savings Deposit Regulations are hereby promulgated along with this Decision.

Article 2. This Decision shall take effect from January 1, 2005 and replace the following Decisions issued by the Governor of the State Bank of Vietnam: Decision No. 30/NH-QĐ dated March 17, 1989 on the issuance of the Savings Rules, Decision No. 72/NH-QĐ dated May 31, 1989 on the supplementation of the Savings Deposit Rules, Decision No. 167/QĐ-NH1 dated August 26, 1993 on the issuance of the Single Deposit Multiple Withdrawal Rules, Decision No. 15/QĐ-NH1 dated February 2, 1994 on the issuance of the Housing Construction Savings Rules; Decision No. 39/2000/QĐ-NHNN7 dated January 24, 2000 on the foreign currency savings regime.

Article 3. For savings deposits deposited before the effective date of this Decision but not yet due for payment, the savings deposit receiving organization and the depositor shall continue to perform according to the commitments already agreed upon until the maturity date of the savings deposit or agree to implement according to the provisions of the Savings Deposit Regulations issued under this Decision.

Article 4. The Heads of the Office, Heads of units under the State Bank of Vietnam; Governors of provincial and municipal branches of the State Bank of Vietnam; Chairmen of the Board of Directors, General Managers (Directors) of savings deposit receiving organizations and depositors are responsible for implementing this Decision.

REGULATIONS

On savings deposits

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(Issued together with Decision No. 1160/2004/QĐ-NHNN dated September 13, 2004 of the Governor of the State Bank of Vietnam)

Article 1. Scope of Regulation and Applicability

These regulations govern the activities of receiving and paying out savings deposits in Vietnamese dong and foreign currencies within the territory of Vietnam between savings deposit receiving organizations and depositors.

Article 2. Savings Deposit Receiving Organizations

1. Credit organizations established and operating in accordance with the Law on Credit Organizations.

2. Other organizations engaged in banking activities permitted by law to receive savings deposits.

Article 3. Subjects of Savings Deposits

1. Subjects of savings deposits in Vietnamese dong are Vietnamese individuals and foreign individuals residing and legally operating in Vietnam.

2. Subjects of savings deposits in foreign currencies are resident individuals.

Article 4. Scope of Savings Deposit Acceptance

1. Commercial banks, development banks, investment banks, policy banks, cooperative banks, people's credit funds may accept savings deposits from all individuals under various terms.

2. Non-bank credit organizations may accept savings deposits with terms of one year or longer from all individuals.

3. As for foreign bank branches, joint venture banks, and wholly foreign-owned credit organizations, the scope of savings deposit acceptance shall be carried out in accordance with the current regulations of the Governor of the State Bank of Vietnam regarding deposit subjects, terms, and maximum mobilization limits.

4. Other organizations engaged in banking activities may accept savings deposits in accordance with their business licenses and other relevant laws and regulations concerning savings deposits.

5. The acceptance of foreign currency savings deposits shall only apply to savings deposit receiving organizations authorized to conduct foreign exchange operations and must comply with the current regulations of the Government and the State Bank of Vietnam on foreign exchange management.

Article 5. Application of international treaties

In cases where an international treaty to which the Socialist Republic of Vietnam is a party contains provisions different from those set forth in this Regulation, the provisions of that international treaty shall be applied.

Article 6. Interpretation of terms

In this Regulation, certain terms are understood as follows:

1. Savings deposit is a sum of money belonging to an individual deposited into a savings deposit account, confirmed on a savings certificate, earning interest according to the regulations of the organization receiving the savings deposit, and insured according to the laws on deposit insurance.

2. Depositor is the person conducting transactions related to savings deposits. The depositor may be the owner of the savings deposit, or a co-owner of the savings deposit, or a guardian or legal representative of the owner of the savings deposit, or a co-owner of the savings deposit.

3. Owner of the savings deposit is the person named on the savings certificate.

4. Co-owner of the savings deposit is two individuals or more named on the savings certificate.

5. Transactions related to savings deposits are transactions of depositing, withdrawing savings deposits, and other transactions related to savings deposits.

6. Savings deposit account is an account in the name of an individual or several individuals and is used to conduct certain payment transactions as stipulated in this Regulation.

7. Savings certificate is a certificate confirming the ownership rights of the owner of the savings deposit or co-owner of the savings deposit over the amount deposited with the organization receiving the savings deposit.

8. Non-term savings deposit is a savings deposit that allows the depositor to withdraw funds at any working day without prior notice.

9. Term savings deposit is a savings deposit that allows the depositor to withdraw funds only after a predetermined deposit period agreed upon with the organization receiving the savings deposit.

10. Deposit term is the period from the date the depositor begins depositing money with the organization receiving the savings deposit until the organization commits to returning the principal and interest of the savings deposit.

11. Resident is understood according to the current regulations of the Government and the State Bank of Vietnam on foreign exchange management.

Article 7. Conditions for conducting transactions related to savings deposits

1. Vietnamese individuals aged 18 years or older with full capacity for civil acts under the Civil Code, and foreign individuals residing and legally operating in Vietnam aged 18 years or older with full capacity for civil acts under Vietnamese law are eligible to conduct transactions related to savings deposits.

2. Vietnamese individuals and foreign individuals residing and legally operating in Vietnam aged 15 years or older but under 18 years old who have their own assets sufficient to ensure the performance of civil obligations under the Civil Code are eligible to conduct transactions related to savings deposits.

3. For minors, individuals lacking capacity for civil acts, and individuals with limited capacity for civil acts as provided by law, such persons can only conduct transactions related to savings deposits through a guardian or legal representative.

Article 8. Procedures for depositing savings deposits

1. Procedures for the first time depositing savings deposits:

a. The depositor must directly carry out the deposit transaction at the organization receiving savings deposits and present the following documents:

- For Vietnamese individuals, they must present their Identity Card.

- For foreign individuals, they must present their passport with remaining validity longer than the deposit term (in cases where visa exemption applies upon entry and exit); present their passport along with the visa having remaining validity longer than the deposit term (in cases where a visa is required for entry and exit).

- For depositors who are guardians or legal representatives, in addition to presenting their Identity Card or passport, they must also present documents proving their status as guardian or legal representative of minors, persons without civil capacity, or persons with limited civil capacity.

b. The depositor registers a sample signature to be kept at the organization receiving savings deposits. In cases where the depositor cannot write in any form, the organization receiving savings deposits will guide the depositor to register a code number or special symbol instead of the sample signature.

c. The depositor carries out other procedures as prescribed by the organization receiving savings deposits.

d. The organization receiving savings deposits implements procedures for accepting savings deposits, opening a savings deposit account, and issuing a savings deposit card to the depositor after the depositor has completed the procedures specified in Points a, b, and c of Clause 1 of this Article.

2. Procedures for subsequent deposits of savings deposits:

a. The procedure for accepting savings deposits is determined by the organization receiving savings deposits in accordance with its business characteristics, conditions, and management model, ensuring convenient, accurate, and safe acceptance of deposits.

b. For transactions depositing into an already issued savings deposit card, the depositor may carry out the transaction directly or through another person as stipulated by the organization receiving savings deposits.

Article 9. Savings Deposit Card

The savings deposit card must include the following main elements:

- Name of the organization receiving savings deposits; type of currency, amount; deposit term; deposit date; maturity date (for term savings deposits); interest rate; method of interest payment; interest payment date; location for principal and interest repayment.

- Name and address of the owner of the savings deposit, co-owner of the savings deposit; Identity Card or passport number of the owner of the savings deposit, co-owner of the savings deposit (except in cases where the owner or co-owner of the savings deposit has not yet reached the age for obtaining an Identity Card or passport).

- Name, address, and Identity Card or passport number of the guardian or legal representative (only applicable in cases where the depositor is a guardian or legal representative).

- Card number, seal, signature of the General Director (Director) of the organization receiving savings deposits or a person authorized by the General Director (Director), and the signature of the transaction officer of the organization receiving savings deposits.

- Regulations on transferring ownership and pledging the savings deposit card within the same organization receiving savings deposits; handling of risk cases.

- Other notes and instructions of the organization receiving savings deposits.

Article 10. Joint deposit account holders

Procedures for receiving and paying out deposits in cases involving joint deposit account holders shall be regulated by the deposit-taking organization in accordance with relevant legal documents.

Article 11. Use of savings deposit accounts

1. Savings deposit accounts may not be used to issue checks or conduct payment transactions, except as provided for in Clause 2 of this Article.

2. Resident individuals' savings deposit accounts denominated in Vietnamese dong may be used to transfer funds to pay loans owed by the depositor or co-depositors at the deposit-taking organization; or to transfer funds to other accounts held by the depositor or co-depositors who are account holders at the deposit-taking organization.

Article 12. Locations for receiving and paying out deposits

1. For each savings card, the deposit-taking organization is permitted to receive and pay out deposits at the transaction location where the card was issued or at other transaction locations of the deposit-taking organization.

2. In cases where deposits are received and paid out at multiple transaction locations for each savings card, the deposit-taking organization must have physical facilities, technical equipment, technology, and staff qualifications to ensure convenience, accuracy, confidentiality, and security of assets for depositors and operational safety for the deposit-taking organization.

Article 13. Interest Rates and Methods of Payment of Interest

1. The deposit-taking organization sets interest rates on savings deposits in accordance with market interest rates, ensuring business efficiency and operational safety of the deposit-taking organization.

2. Interest rates on savings deposits are based on a monthly period (30 days) or an annual period (360 days).

3. The method of payment of interest is determined by the deposit-taking organization.

Article 14. Forms of Savings Deposits

1. Forms of savings deposits are classified according to the term of deposit into non-term savings deposits and term savings deposits. Specific terms of deposit are set by the deposit-taking organization.

2. Forms of savings deposits are classified according to other criteria as specified by the deposit-taking organization.

Article 15. Withdrawal of Principal and Interest from Savings Deposits

1. The depositor shall perform the following procedures:

a. Present the savings card

b. Submit a withdrawal slip signed with the registered signature sample at the deposit-taking organization.

c. Vietnamese individuals must present their Identity Card. Foreign individuals must present their passport valid for entry and exit (in cases exempted from visa requirements); present their passport along with a valid visa (in cases requiring a visa for entry and exit).

d. In cases where the depositor is a guardian or legal representative, in addition to performing the procedures mentioned in Points a, b, and c of Clause 1 of this Article, the depositor must also present documents proving the status of the guardian or legal representative of minors, individuals without civil capacity, or individuals with limited civil capacity.

e. The depositor shall perform other procedures as prescribed by the deposit-taking organization.

2. The deposit-taking organization shall establish procedures for paying out deposits that are suitable to its characteristics and business conditions, ensuring accurate and secure payment of deposits.

3. The currency for paying out principal and interest (Vietnamese dong or foreign currency) shall be the currency in which the depositor deposited the funds. For foreign currency savings deposits, if the depositor requests, the deposit-taking organization may pay out principal and interest in Vietnamese dong at the exchange rate set by the deposit-taking organization. Payments for fractional foreign currencies shall be made in accordance with the regulations of the deposit-taking organization.

4. For term savings deposits, in cases where the maturity date coincides with a public holiday or legal holiday, the payment of principal and interest on savings deposits shall be made on the first working day thereafter.

Article 16. Early Withdrawal of Savings Deposits

1. The depositor may withdraw savings deposits early if there is an agreement with the deposit receiving organization at the time of depositing money and must notify the request to withdraw money early in advance according to the regulations of the deposit receiving organization.

2. In cases where the depositor has the need to withdraw savings deposits early and meets the requirements stipulated in Clause 1 of Article 16, the depositor shall be entitled to interest according to the regulations of the deposit receiving organization and the maximum applicable interest rate shall not exceed the current interest rate for non-term savings deposits of the deposit receiving organization.

3. In cases where the depositor wishes to withdraw savings deposits early but does not meet the requirements stipulated in Clause 1 of Article 16, the deposit receiving organization may still allow the depositor to withdraw money early. In this case, the depositor shall be entitled to interest according to Clause 2 of Article 16 but must pay a fee for early withdrawal of savings deposits as prescribed by the deposit receiving organization.

4. Depositors at non-bank credit organizations can only withdraw the principal of savings deposits early for amounts that have been deposited for one year or more.

5. The deposit receiving organization specifies the minimum advance notice period required for requests to withdraw savings deposits early, the interest rates, and the fees applicable to early withdrawals of savings deposits.

Article 17. Withdrawal of Savings Deposits According to Inheritance

Procedures for withdrawing savings deposits according to inheritance are regulated by the deposit receiving organization in accordance with the provisions on inheritance in the Civil Code and related legal documents.

Article 18. Withdrawal of Savings Deposits According to Power of Attorney

1. The deposit receiving organization specifies the necessary elements of the power of attorney to ensure the interests of the savings deposit owner or co-owner and comply with relevant legal documents.

2. After verifying the legality and validity of the power of attorney, the deposit receiving organization will process the payment of savings deposits based on the content of the authorization.

Article 19. Extension of Deposit Period

When the term of a fixed-term savings deposit expires, if the depositor does not claim it and does not make any other request, the deposit receiving organization may roll over the deposit for another term according to the agreement between the deposit receiving organization and the depositor.

Article 20. Transfer of Ownership Rights

The deposit receiving organization regulates procedures for transferring ownership rights of savings deposit certificates in accordance with relevant legal documents.

Article 21. Using Savings Deposit Certificates as Collateral for Loans

1. Savings deposit certificates may be used as collateral at credit institutions according to the provisions of the law on loan guarantees if such credit institution agrees.

2. When using savings deposit certificates as collateral, the savings deposit owner or co-owner must commit that in the event of default upon maturity of the debt, the lending credit institution has the right to request the deposit receiving organization to deduct from their savings deposit account to settle the principal and interest of the loan.

Article 22. Fee Levels for Receiving and Paying Out Savings Deposits and Related Services

1. The receipt and payment of savings deposits at organizations receiving savings deposits shall be free of charge (except as provided in Clause 3 of Article 16 of this Decision).

2. For other related services concerning savings deposits, organizations receiving savings deposits shall establish appropriate fee levels commensurate with the content, conditions, and methods of service implementation of their own organization.

Article 23. Handling Risk Cases

Organizations receiving savings deposits shall stipulate the handling of cases involving damaged, torn, lost savings deposit cards, and other risk cases associated with savings deposit cards in accordance with the law, consistent with their characteristics and business conditions, and ensuring the legitimate rights and interests of the owners or co-owners of savings deposits.

Article 24. Rights of Depositors

1. Depositors shall be paid the full principal and interest on savings deposits according to agreements with organizations receiving savings deposits.

2. Depositors who are the owners or co-owners of savings deposits have the right to transfer ownership of the savings deposit card, leave savings deposits as inheritance, and authorize others to perform withdrawal transactions on savings deposits in accordance with the law.

3. Depositors who are the owners or co-owners of savings deposits may pledge the savings deposit card to borrow funds from credit institutions if such credit institutions approve.

4. Depositors who are guardians or legal representatives have the right to perform transactions related to savings deposits in accordance with this Regulation and relevant laws and regulations.

Article 25. Obligations of Depositors

1. To comply with the provisions of this Regulation and agreements already committed to with organizations receiving savings deposits.

2. To notify in advance about requests to withdraw savings deposits before maturity as stipulated by organizations receiving savings deposits.

3. To promptly inform organizations receiving savings deposits about the loss of savings deposit cards upon discovery to prevent misuse causing asset losses.

4. To bear responsibility for damages caused by failing to promptly report the loss of savings deposit cards to organizations receiving savings deposits.

Article 26. Rights of Organizations Receiving Savings Deposits

1. To refuse to accept and pay out savings deposits if depositors do not comply with the provisions of this Regulation and agreements already committed to with organizations receiving savings deposits.

2. To refuse to pay out savings deposits for savings deposit cards that have been misused but not due to the fault of the organization receiving savings deposits.

Article 27. Obligations of Organizations Receiving Savings Deposits

1. Based on this Regulation and relevant legal documents, organizations receiving savings deposits shall issue and publicly announce regulations on savings deposits within their systems.

2. To receive savings deposits from individuals during transaction hours.

3. To pay out the principal and interest on savings deposits on time and fully.

4. To publicly announce interest rates on savings deposits, methods of interest payment, fees for early withdrawals (if applicable), and fees for related services at locations for receiving and paying out savings deposits.

5. To keep confidential the balance of savings deposits of the owners or co-owners of savings deposits in accordance with the law and ensure the safety of savings deposits for the owners or co-owners of savings deposits.

6. To be responsible for damages, violations, and misuse of savings deposits due to the fault of organizations receiving savings deposits.

7. Credit institutions shall have the responsibility to report to the State Bank relevant data on activities of receiving and paying out savings deposits in accordance with current reporting and statistical regulations.

8. Other organizations permitted by law to engage in banking activities and receive savings deposits shall have the responsibility to report to the State Bank on the situation of receiving and paying out savings deposits in accordance with the regulations of the State Bank.

Article 28. Handling Violations

Organizations and individuals violating the provisions of this Regulation shall be subject to administrative penalties in the field of currency and banking operations or criminal liability as prescribed by law, and must compensate for material losses caused.

Article 29. Amendment and supplementation

Amendments and supplements to this Regulation shall be decided by the Governor of the State Bank.