Circular No. 14/2013/TT-NHNN stipulates the maximum interest rate for dollar deposits of organizations and individuals at credit institutions and foreign bank branches.

CIRCULAR

Regulations on the maximum interest rate for dollar deposits of organizations and individuals at credit institutions and foreign bank branchescredit institutions, foreign bank branches

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

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

Pursuant to the Foreign Exchange Ordinance No. 28/2005/PL-UBTVQH11 dated December 13, 2005;

Pursuant to Decree No. 160/2006/NĐ-CP dated December 28, 2006 of the Government detailing the implementation of the Foreign Exchange Ordinance;

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;

Article 1.

The Governor of the State Bank of Vietnam issues this Circular to regulate the maximum interest rate for dollar deposits of organizations and individuals at credit institutions and foreign bank branches,

Article 1. Credit institutions and foreign bank branches shall determine the interest rate for dollar deposits of resident organizations and individuals and non-resident organizations and individuals including promotional expenses in all forms as follows:

1. The maximum interest rate applicable to deposits of resident organizations and non-resident organizations (excluding credit institutions and foreign bank branches) is 0.25%/year.

2. The maximum interest rate applicable to deposits of resident individuals and non-resident individuals is 1.25%/year.

Deposits include demand deposits, time deposits, savings deposits, deposit certificates, bills, treasury bills, bonds, and other deposit 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 rate for deposits prescribed in Article 1 of this Circular applies to end-of-period interest payment methods and other interest payment methods converted to end-of-period payment methods.

Article 3. Credit institutions and foreign bank branches must publicly display the interest rate for dollar deposits 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 implementing promotions in any form (in cash, interest rates, and other forms) that do not comply with the provisions of the law and this Circular when accepting deposits.

Article 4. Implementation

1. This Circular takes effect from June 28, 2013, and replaces Circular No. 14/2011/TT-NHNN dated June 1, 2011, issued by the Governor of the State Bank of Vietnam regulating the maximum interest rate for dollar deposits of organizations and individuals at credit institutions.

2. For dollar term deposits of organizations and individuals at credit institutions and foreign bank branches that arise before this Circular takes effect, they will be implemented until their maturity; if the agreed maturity period has expired and the organization or individual does not withdraw the deposit, then the credit institution or foreign bank branch shall determine the interest rate for the deposit according to the provisions of 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 maximum interest rate for dollar deposits; apply measures within their authority to handle violations by credit institutions and foreign bank branches as prescribed in this Circular.

4. The Director of the Office, Heads of the Monetary Policy Department, and Heads of units under the State Bank of Vietnam; Chairmen of the Board of Directors, Chairmen of the Board of Members, and General Managers (Directors) of credit institutions and foreign bank branches and related organizations and individuals are responsible for enforcing this Circular./.