Decision No. 1557/2001/QD-NHNN On the issuance of the Interbank Electronic Settlement Rules

 

Pursuant to …;

Regarding the issuance of the Rules on Electronic Payment Settlement among Banks

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Organizations numbered 01/1997/QH10 dated December 12, 1997;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;

Pursuant to Decree No. 64/2001/NĐ-CP dated September 20, 2001 of the Government on payment activities through service providers;

Pursuant to Decision No. 196/TTg dated April 1, 1997 of the Prime Minister regarding the use of data information on carriers for accounting vouchers and payment transactions of banks and credit organizations;

At the proposal of the Director of the Accounting and Finance Department of the State Bank,

Pursuant to …;

Article 1. The Rules on Electronic Payment Settlement among Banks are hereby issued pursuant to this Decision.

Article 2. This Decision shall take effect from January 1, 2002.

Article 3. The Heads of the Office, Department of Accounting-Finance, Banking Information Technology Department; Heads of units under the State Bank of Vietnam, Branch Directors of the State Bank of Vietnam, Provincial/City Branch Directors of the State Bank of Vietnam; General Managers (Directors) of banks and other entities engaged in payment services are responsible for implementing this Decision.

REGULATIONS

ELECTRONIC PAYMENT SETTLEMENT AMONG BANKS
(Issued together with Decision No. 1557/2001/QD-NHNN dated December 14, 2001 of the Governor of the State Bank of Vietnam)

Chapter 1

GENERAL PROVISIONS

Article 1. Scope of application

1. These rules regulate electronic payment settlement activities through computer networks for payments valued at less than 500,000,000 VND (five hundred million dong) between banks and other entities engaged in payment services operating within the territory of Vietnam that have opened deposit accounts at a unit of the State Bank of Vietnam, organized and hosted by such unit for electronic payment settlement.

All debt transfer transactions in electronic payment settlement among banks must be authorized in advance: Member banks must sign debt transfer contracts with each other and notify the host bank in writing before implementation.

2. Electronic money transfers; payments between Vietnam and foreign countries and other forms of international payments are not within the scope of these rules.

Article 2. Eligible participants in electronic payment settlement

1. Banks and other entities engaged in payment services operating within the territory of Vietnam (hereinafter referred to as banks) that meet the membership criteria for participating in inter-bank electronic payment settlement as stipulated by the Governor of the State Bank of Vietnam, submit an application to participate in electronic payment settlement and are approved in writing by the host bank.

2. Banks not falling under the provisions of Clause 1 of this Article who wish to participate in electronic payment settlement must select a member bank to act as their direct representative (authorized member bank) to open a deposit account and conduct inter-bank electronic payment settlement transactions through this bank.

The authorized member bank must commit in writing to the host bank and other directly member banks to accept payment settlement documents of indirectly member banks represented by it and fulfill all obligations related to these payments. The authorized member bank shall bear material compensation responsibility if the authorization causes any loss to the parties involved due to any reason. The payment relationship between the authorized member bank and the authorizing bank shall be determined according to current regulations governing payments between banks.

Article 3. Explanation of terms used in these rules

- Inter-bank electronic payment settlement (hereinafter referred to as electronic payment settlement) involves transferring funds and making payments through a computer network between accounts opened at different banking systems or branches of the same bank within a specific geographic area. Using electronic settlement processing technology, banks exchange payment documents through a computer network, offset mutual debts, and settle the net difference.

- Host bank for electronic payment settlement (hereinafter referred to as host bank): is a unit of the State Bank of Vietnam responsible for organizing electronic payment settlement and processing the results of electronic payment settlement; the host bank may participate in electronic payment settlement as a member bank.

- Technical processing center for electronic payment settlement: is a unit responsible for automatically processing inter-bank electronic payment settlement transactions and determining the results of electronic payment settlement for member banks. The technical processing center for electronic payment settlement can be a unit belonging to an organization or a component part of the host bank, or an independent entity (company) handling the receipt, processing of payment data, and reporting the results of electronic payment settlement to the host bank and relevant member banks.

- Directly participating member bank in electronic payment settlement (hereinafter referred to as directly participating member bank): is a bank directly connected to the computer system of the host bank or the technical processing center for electronic payment settlement (in case the technical processing center for electronic payment settlement is an independent entity) to conduct electronic payment settlement transactions. In electronic payment settlement, the directly participating member bank acts both as the sending bank (referred to as the sending bank) and the receiving bank (referred to as the receiving bank).

- Authorized member bank: is a directly participating member bank representing one or more indirectly participating member banks to conduct electronic payment settlement transactions.

- Indirectly participating member bank in electronic payment settlement (hereinafter referred to as indirectly participating member bank): is a bank conducting electronic payment settlement transactions through an authorized member bank. An indirectly participating member bank may be a branch directly under the authorized member bank or another bank system that has opened a deposit account at the authorized member bank.

- Payment Order: is a designation in the form of accounting voucher elements encoded by the bank sent to the Lead Bank, the Electronic Payment Settlement Center, and the receiving bank for the purpose of executing electronic payment settlement.

- Credit Transfer Order is a payment order, considered as a payable amount of the sending bank to the receiving bank in electronic payment settlement.

- Debit Transfer Order with Authorization is a payment order, considered as a receivable amount of the sending bank to the receiving bank in electronic payment settlement.

- Debit Transfer Order Cancellation Order: is an electronic message having the value of a Credit Transfer Order; established and transferred by the sending bank to the receiving bank to cancel the previously sent Debit Transfer Order (cancelling part or all of the amount).

- Request to Cancel Credit Transfer Order: is an electronic message established and transferred by the sending bank to the receiving bank requesting to cancel the previously sent Credit Transfer Order (cancelling part or all of the amount depending on specific errors); serves as the basis for the receiving bank to establish a Credit Transfer Order to return the amount to the sending bank upon recovery of the paid funds.

- Electronic Payment Settlement Transaction Date (referred to as Transaction Date): is a period within a working day, determined from the start of the working day until the time when banks cease sending payment orders according to the regulations of the State Bank.

- Electronic Payment Settlement Session: is a period defined within the transaction date during which payment orders sent by member banks to the Lead Bank or the Electronic Payment Settlement Technical Processing Center (if the Electronic Payment Settlement Technical Processing Center is an independent unit) will be processed at a specified time. Within the transaction date, there may be one or several electronic payment settlement sessions.

- Electronic Payment Settlement Result Sheet: is a data sheet prepared by the Lead Bank or the Electronic Payment Settlement Center (if the Electronic Payment Settlement Technical Processing Center is an independent unit) for each direct member bank after the end of the electronic payment settlement session and at the time of final settlement, reflecting the total receivables and payables according to the payment orders sent and received by the member bank, and showing the actual amount payable or receivable for each member bank. The Electronic Payment Settlement Result Sheet is considered a type of accounting voucher.

- Liquidity of Member Banks: is the balance on the deposit account of the direct member bank at the Lead Bank.

Chapter 2

SPECIFIC PROVISIONS

Article 4. Procedures for Application and Approval of Member Banks Participating in Electronic Payment Settlement

1. When banks have met the conditions and standards for participating in interbank electronic payments, if they wish to participate in interbank electronic payment settlement, they must prepare and submit the following documents to the State Bank where their accounts are opened:

- Application for Participation in Interbank Electronic Payment Settlement.

- Commitment Letter to comply with relevant regulations upon becoming a member bank participating in interbank electronic payment settlement.

2. Upon receipt of the application and documents from a bank applying for participation in electronic payment settlement, after review and verification, if the bank meets the conditions and standards for interbank electronic payment settlement member banks and follows the procedures for application for electronic payment settlement as prescribed, the Lead Bank will accept and admit the bank as a member bank participating in interbank electronic payment settlement and notify in writing all member banks to be informed for transactions.

In case a bank applying for participation in electronic payment settlement does not meet the conditions and standards for admission as a member bank participating in interbank electronic payment settlement, the Lead Bank must issue a rejection letter stating the reasons.

Article 5. Documents Used in Electronic Payment Settlement

1. Accounting entries in interbank electronic payment settlement are Payment Orders and Electronic Payment Settlement Statement Sheets as prescribed by the State Bank. Original documents used as the basis for establishing Payment Orders are payment documents used to transfer money according to current regulations. The establishment, control, circulation, processing, storage, and preservation of documents in electronic payment settlement must comply strictly with the accounting voucher system regulations for banks and credit organizations issued by the Governor of the State Bank.

2. Member banks must convert paper documents into electronic documents or vice versa when necessary, in accordance with the technical and operational procedures of electronic payment settlement. Document conversion must ensure accurate matching between the basis document and the converted document, conform to the prescribed format, and ensure the legal validity of the document.

3. The sending bank (including both direct and indirect member banks) is responsible for preserving and storing valid payment documents used as the basis for establishing Payment Orders in accordance with current regulations.

Article 6. Transaction Time in Electronic Payment Settlement

1. The start time of transactions, the stop time for sending Payment Orders by member banks, the processing time of the electronic payment settlement session, and the settlement time of electronic payment settlement on the transaction date are determined by the Lead Bank based on the following grounds:

- The processing capacity of the Electronic Payment Settlement Technical Processing Center and the requirements of direct member banks;

- The network connection of the electronic payment settlement system with related business activities and other banks of direct member banks.

2. When there is a change in the transaction time for electronic payment settlement, the Lead Bank must promptly notify the direct member banks.

Article 7. Transmission, Reception, and Data Processing in Electronic Payment Settlement

1. When transmitted over a computer network, electronic payment settlement data must be encrypted and security measures applied in accordance with current regulations for electronic documents and other relevant provisions on information transmission and data processing through a computer network in banking activities issued by the State Bank.

2. The leading bank or the Electronic Payment Settlement Processing Center (in cases where the Electronic Payment Settlement Processing Center is an independent entity) and member banks must comply with regulations on methods of transmitting, receiving, and processing data in electronic payment settlement. Methods of transmitting, receiving, and processing data in electronic payment settlement shall be stipulated by the leading bank or the Electronic Payment Settlement Processing Center after reaching consensus with member banks and must be consistent with regulations on transmitting, receiving, and processing payment transfer data issued by the State Bank or approved by the State Bank.

3. In cases of technical failures, information transmission issues, and other force majeure factors that prevent the transmission and receipt of electronic payment settlement data over a computer network, the leading bank or the Electronic Payment Settlement Processing Center (in cases where the Electronic Payment Settlement Processing Center is an independent entity) and member banks must have appropriate solutions; if possible, direct data exchange on storage media (tapes, magnetic disks, etc.) may be applied according to current regulations of the State Bank while simultaneously taking all measures to quickly resolve the failure.

Article 8. Ensuring safety for computer systems, equipment, and databases serving electronic payment settlement activities.

1. The leading bank and member banks must have strict regulations regarding the installation, use, maintenance, and preservation of equipment and computer programs serving electronic payment settlement within their respective management scope.

2. The leading bank and member banks must have backup computer systems, equipment, and databases for electronic payment settlement activities and organize the storage of both active and backup data. Backup systems, equipment, and databases must be located at safe, separate locations from the main operational systems and must have specific usage plans to ensure the safe and continuous operation of electronic payment settlement activities.

Article 9. Security in electronic payment settlement.

1. The leading bank and each member bank are responsible for stipulating appropriate security measures to be applied internally within their respective units.

2. The leading bank is responsible for stipulating the electronic signature to be used to protect and control electronic payment settlement data when transmitting and receiving between the leading bank and member banks via a computer network. In necessary cases, the leading bank may stipulate additional security measures to ensure the safety of encoded transaction documents.

3. The Electronic Payment Settlement Processing Center is responsible for stipulating the security key code to be used to access the Electronic Payment Settlement Processing Center's computer system (referred to as the computer security key code).

4. Regulations on electronic signatures and computer security key codes in electronic payment settlement as stipulated in Clause 2 and Clause 3 of this Article must comply with current regulations of the State Bank on the establishment, issuance, use, preservation, and management of electronic signatures and computer security key codes in electronic payment transfers.

Article 10. Processing at the electronic payment settlement session.

1. At the time of settlement processing specified for each electronic payment settlement session, the Electronic Payment Settlement Processing Center (if the settlement center is an independent entity) or the leading bank shall perform:

- Settling offsetting against valid payment orders received from member banks.

- Preparing and sending the Electronic Payment Settlement Result Table to serve the verification and accounting at the leading bank and directly affiliated member banks in accordance with the State Bank's regulations.

2. The leading bank bases the Electronic Payment Settlement Result Table to settle and account for the net amount payable or receivable of each directly affiliated member bank.

3. Upon receiving the electronic payment settlement result transferred by the leading bank or the Electronic Payment Settlement Processing Center to directly affiliated member banks, they must strictly verify and reconcile according to regulations for payment orders and electronic payment settlement results before processing and accounting.

Article 11. Final settlement of electronic payment settlement.

1. Final settlement of electronic payment settlement is the final processing of electronic payment settlement transactions on the transaction day and at a specified time after the leading bank and member banks have accurately reconciled all receivables, payables, and actual amounts payable or receivable of each member bank on the transaction day. If the leading bank and member banks have not yet resolved discrepancies and data discrepancies before the specified final settlement time, the leading bank may postpone the final settlement time of the transaction day and must notify all member banks to take appropriate measures in accordance with regulations.

2. At the final settlement time of electronic offsetting, the leading bank processes:
- Adjusting offsetting processing for payment orders of directly affiliated member banks that have supplemented sufficient capital to cover shortfalls in electronic payment settlement.

- Returning or canceling payment orders exceeding the payment capacity of directly affiliated member banks at the leading bank.

- Sending the final settlement results to directly affiliated member banks.

- Based on the adjusted settlement reconciliation results, the Bank shall be responsible for recording Debit and Credit entries directly to the accounts of member banks according to the final amounts payable or receivable on the transaction day. After settlement is completed, the settlement account of the main bank must have zero balance.

3. Member banks shall perform the following:

- Strictly check and reconcile their payment orders, final amounts payable or receivable on the transaction day with the received electronic settlement reconciliation results before processing and recording.

- If they match correctly, they must immediately send an electronic confirmation to the main bank or the Electronic Settlement Reconciliation Technical Processing Center (if the Center is an independent entity); In case of errors or mistakes, they must immediately investigate and cooperate with the main bank, the Electronic Settlement Reconciliation Technical Processing Center, and related member banks to adjust according to regulations.

- At member banks, after recording the final amounts payable or receivable on the transaction day based on the settlement reconciliation results, the settlement account of the member bank must have zero balance.

Article 12. Measures to prevent and handle cases of insufficient liquidity of direct member banks in electronic settlement.

1. Direct member banks must commit to maintaining sufficient liquidity to ensure timely and full payment of amounts payable in electronic settlement, including payments to customers and other related member banks.

2. From the time of stopping sending payment orders until the settlement of electronic settlement, direct member banks with insufficient liquidity must take measures to find sources to cover the shortfall of their own bank.

3. In case when conducting electronic settlement reconciliation or after a period as specified and announced, if a direct member bank with insufficient liquidity has not created enough sources to cover the shortfall in settlement, the main bank has the right to return or cancel (as stipulated in the Interbank Electronic Settlement Reconciliation Technical Process) payment orders exceeding the liquidity capacity of that bank and will suspend its participation in settlement if this occurs three times consecutively, while notifying related member banks.

Article 13. Control and reconciliation in electronic settlement.

1. The main bank or the Electronic Settlement Reconciliation Technical Processing Center (if the Center is an independent entity), and direct member banks must comply with regulations on control and reconciliation of electronic settlement transactions to ensure accurate and consistent data; promptly detect and handle errors.

2. Direct member banks, the main bank, or the Electronic Settlement Reconciliation Technical Processing Center (if the Center is an independent entity) must strictly check according to regulations on electronic signatures, security key codes, and other secret symbols (if any), payment orders, electronic settlement reconciliation result tables, and related documents used in electronic settlement.

3. The main bank and direct member banks must regularly check and reconcile deposit account balances of member banks at the main bank.

4. The main bank must calculate, control, and strictly reconcile according to regulations on the settlement reconciliation results of each settlement reconciliation process on the transaction day to ensure accurate and consistent data.

Article 14. Organization of accounting and handling of errors, correction of errors in electronic settlement.

1. Accounting organization: The main bank and member banks must comply with the accounting system in electronic settlement as prescribed by the State Bank.

Direct member banks must organize computerized accounting to ensure compatibility and synchronization with the electronic settlement system; accurately, timely, and fully fulfill payment obligations and bear responsibility for delays and errors causing damage to related parties.

2. Errors and correction of errors: When discovering errors or discrepancies in electronic settlement (collectively referred to as errors), the main bank, or the Electronic Settlement Reconciliation Technical Processing Center (if the Center is an independent entity), and related member banks must take measures to handle and correct errors according to regulations to ensure accurate and consistent data, asset safety, and not affect electronic settlement operations and cause damage to customers. Error corrections in electronic settlement must adhere to the following principles:

a. Strictly follow regulations and methods for correcting errors in accounting and electronic settlement; errors occurring at which stage must be corrected at that stage. Unauthorized modification of data or error correction is strictly prohibited.

b. Individuals or entities causing errors or violating error correction principles and regulations, depending on the nature and degree of violation, may be subject to disciplinary action, administrative penalties, and must bear material compensation responsibilities for damages caused to related parties according to current laws.

Article 15. Cancellation of Payment Orders.

1. At the settlement time, the main bank has the right to return or cancel payment orders from direct member banks that do not meet payment conditions. In such cases, direct member banks must unconditionally accept returned or canceled payment orders.

2. Prior to settlement, a Payment Order may be stopped for payment by a Cancellation Order (for cancelling an Authorized Debit Transfer Order) or a Cancellation Request (for cancelling an Authorized Credit Transfer Order) sent by the Sending Bank. The Cancellation Order or Cancellation Request of the Sending Bank shall only be effective in the following specific cases:

- An Authorized Debit Transfer Order can only be cancelled when the Sending Bank has not yet paid the customer according to the erroneous order or has already paid but can recover the amount.

- An Authorized Credit Transfer Order can only be cancelled when the Receiving Bank has not yet credited the account of the customer or has credited the account of the customer but the customer has returned the amount.

Article 16. Provisions on fees in electronic clearing payments

1. Direct Member Banks must fully and promptly pay the following fixed fees to the Host Bank:

a. The Participation Fee for electronic clearing payments is a one-time fee that banks must pay before being admitted as a Direct Member Bank. This fee is prescribed by the State Bank of Vietnam or approved based on the proposal of the Host Bank.

b. The Annual Fee is a yearly fee that Direct Member Banks must pay to maintain the operation of the system. The application of the Annual Fee is decided by the Host Bank after reaching consensus with the Direct Member Banks.

2. The Host Bank or the Electronic Clearing Payment Processing Center (in case the Electronic Clearing Payment Processing Center is an independent entity) may charge service fees for electronic clearing payments from Direct Member Banks in accordance with the current regulations of the State Bank regarding the collection of service fees for bank transactions.

3. Direct Member Banks may charge service fees for electronic clearing payments from customers, Indirect Member Banks, and related banks in accordance with the current regulations of the State Bank regarding the collection of service fees for bank transactions.

Chapter 3

RIGHTS AND OBLIGATIONS OF SUBJECTS PARTICIPATING IN ELECTRONIC CLEARING PAYMENTS

Article 17. Rights and obligations of Direct Member Banks

1. Direct Member Banks have the right:

- To use electronic clearing payment services and related services prescribed and provided by the Host Bank or the Electronic Clearing Payment Processing Center.

- To act as an agent (authorized) for electronic clearing payments for Indirect Member Banks and collect fees in accordance with current regulations.

- To refuse to execute in the following cases: an invalid Payment Order or incorrect address; an Unauthorized Debit Transfer Order or exceeding the authorized limit; a Cancellation Request for an Authorized Credit Transfer Order due to insufficient funds in the account of the recipient person or unit or inability to recover the amount.

- To request the Host Bank to notify the balance and operational status of their deposit account at the Host Bank.

- To claim compensation for losses caused by errors of the Host Bank or other Member Banks. The compensation amount is limited to the amount payable plus late payment penalties calculated based on the payable amount multiplied by the current late payment interest rate.

2. Direct Member Banks have the obligation:

- To ensure liquidity to make timely and full payments for all amounts payable in electronic clearing payments of their own bank (as well as for indirect member banks in cases where they act as agents).

- To fully and promptly pay all fees for electronic clearing payments in accordance with the regulations.

- To ensure the safety of computer systems, equipment, and databases serving electronic clearing payment activities within their management scope; To comply strictly with the regulations on data transmission, receipt, processing, and security in electronic clearing payments.

- To accept inspections conducted by the Host Bank or the Electronic Clearing Payment Processing Center regarding compliance with regulations on ensuring the safety of computer systems, equipment, and databases serving electronic clearing payment activities and regulations on security in electronic clearing payments.

- To be responsible for the truthfulness, accuracy, and completeness of Payment Orders, reconciliation statements, and related documents issued by their own bank.

- To closely monitor Payment Orders, Electronic Clearing Payment Reconciliation Statements, and other related documents received from the Host Bank (or the Electronic Clearing Payment Processing Center), and to confirm them in accordance with the regulations; To immediately return rejected Payment Orders and if there are issues, provide valid reasons.

- To review the Sending Bank, the Host Bank, and the Electronic Clearing Payment Processing Center when errors, doubts, or unclear information are found in received Payment Orders.

- To confirm and respond to inquiries about Payment Orders at the request of relevant parties.

- To accurately, promptly, and completely record legitimate Payment Orders received.

- To immediately inform the beneficiary person or unit and the party obligated to pay about received Payment Orders and their processing results. They are responsible for payment to the recipient person or unit from the moment they accept the Payment Order.

- In case of erroneous or excess payments made to the recipient of a Payment Order, upon discovery, they must inform the recipient of the Payment Order and immediately apply measures in accordance with the regulations to recover the erroneously or excessively paid amount.

- To compensate for losses or bear penalties for mistakes and delays caused by themselves. The compensation amount for fund transfers is limited to the amount payable plus the late payment penalty according to current regulations.

- When ceasing participation in electronic clearing payments, Direct Member Banks still bear responsibility for all electronic clearing payment transactions previously executed by their bank (including direct payments by Direct Member Banks and authorized payments by Indirect Member Banks) during their previous participation in electronic clearing payments.

Article 18. Rights and obligations of the Host Bank

1. The Host Bank has the right:

- Review and approve commercial banks, credit organizations, and the State Treasury that meet the conditions and criteria to participate in electronic payment settlement.

- Collect fees for electronic payment settlement in accordance with regulations.

- Specify the transaction time frame and handling of results from electronic payment settlement.

- Directly deduct funds from the settlement accounts of member banks to settle the discrepancies according to the results of electronic payment settlement; apply other measures as prescribed by the State Bank to prevent and handle cases where member banks lack liquidity.

- Return or cancel payment orders exceeding the liquidity of direct member banks at the time of electronic payment settlement reconciliation.

- Decide on penalties for direct member banks violating electronic payment settlement according to the authority prescribed by the State Bank.

2. The leading bank shall be responsible for:

- Drafting plans to organize and implement electronic payment settlement; disseminate, guide, and train member banks on electronic payment settlement operations.

- Ensure security for computers, equipment, and databases serving electronic payment settlement activities under its management; comply with regulations regarding data reception and processing in electronic payment settlement.

- Strictly adhere to and fully implement regulations on confidentiality in electronic payment settlement.

- Organize and guide the control, verification, and handling of errors in electronic payment settlement in accordance with regulations.

- Manage and monitor the liquidity of direct member banks; accurately, promptly, and fully record the results of electronic payment settlement.

- Propose measures and organize regular and surprise inspections of the technical processing center for electronic payment settlement and direct member banks in compliance with regulations on ensuring computer system, equipment, and database security for electronic payment settlement activities; and confidentiality regulations in electronic payment settlement.

- Compensate for losses or accept penalties for mistakes and delays caused by itself; the compensation limit is the amount due plus the late payment penalty as stipulated.

3. Other rights and responsibilities of the leading bank:

a. When participating in electronic payment settlement as a direct member bank, the leading bank must comply with regulations applicable to direct member banks.

b. When the leading bank also assumes the role of the technical processing center for electronic payment settlement, it has additional rights and responsibilities of the technical processing center for electronic payment settlement as follows:

- Strictly adhere to and fully implement regulations on ensuring security for computer systems, equipment, and databases serving electronic payment settlement activities; and confidentiality regulations in electronic payment settlement.

- Establish and guide methods for transmitting, receiving, and processing data between the technical processing center for electronic payment settlement and direct member banks and the leading bank.

- Ensure secure and timely storage of electronic payment settlement data as required.

- Be responsible for the accuracy, truthfulness, and completeness of the Settlement Result Statement and related documents prepared by itself.

- Conduct checks, controls, and verifications in electronic payment settlement in accordance with regulations. Promptly investigate and respond to inquiries from direct member banks and the leading bank regarding errors and discrepancies in data.

- Conduct inspections and supervision of direct member banks in compliance with regulations on ensuring security for computer systems, equipment, and databases serving electronic payment settlement activities.

- Compensate for losses or accept penalties for mistakes and delays caused by itself. The compensation limit for fund transfers is the amount due plus the late payment penalty as stipulated.

Chapter 4

VIOLATIONS IN ELECTRONIC PAYMENT SETTLEMENT

Article 19. Violations and handling of violations

1. Violations in electronic payment settlement include:

a. Failure to comply with relevant regulations on electronic payment settlement operations issued by the State Bank.

b. Direct member banks failing to maintain sufficient liquidity to settle all payment orders sent and received on the settlement day in full and on time.

c. Delay (or delay) in returning rejected Credit Transfer Orders with the intent to misuse funds; rejecting valid Debit Transfer Orders to avoid capital shortages.

2. Handling Violations:

a. Individuals or organizations violating the provisions of Clause 1 of this Article, if causing material damage to customers or other member banks, must compensate for such damage to the affected customer or bank.

b. Suspension from participating in electronic payment settlement activities:

- Temporary suspension: If a direct member bank violates Clause 1 of this Article three consecutive times, it will be temporarily suspended from interbank electronic payment settlement for at least six months to rectify the situation. After six months, if it wishes to continue participating in electronic payment settlement, the member bank must submit a written request to the leading bank for review.

- Permanent suspension: If a direct member bank violates Clause 1 of this Article four times, it will be permanently suspended and removed from the list of participating banks in electronic payment settlement.

Chapter 5

IMPLEMENTING PROVISIONS

Article 20. Heads of Departments, Bureaus, and units under the State Bank of Vietnam, Branch Directors of the State Bank in provinces and cities within their functions and duties, are responsible for guiding, implementing, and supervising the implementation of this Regulation.

The General Director (Director) of the Bank and other organizations providing payment services shall be responsible for organizing and directing the implementation within their own systems in accordance with the provisions of this Regulation.

Article 21. Any amendment or supplementation to this Regulation shall be decided by the Governor of the State Bank.