Circular No. 17/2012/TT-NHNN amends and supplements certain provisions of Circular No. 30/2011/TT-NHNN dated September 28, 2011, concerning the maximum interest rate for deposits in Vietnamese dong made by organizations and individuals at credit institutions and foreign bank branches.

CIRCULAR

Amending and supplementing certain Articles of Circular No. 30/2011/TT-NHNN dated September 28, 2011 on the maximum interest rate for deposits in Vietnamese dong of organizations and individuals concerning the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and 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 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;

Pursuant to Resolution No. 01/NQ-CP dated January 3, 2012 of the Government on key measures to guide the implementation of the socio-economic development plan and state budget estimate for 2012;

Article 1.

The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing certain Articles of Circular No. 30/2011/TT-NHNN dated September 28, 2011 on the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches.

Article 1. Amending and supplementing Article 1 of Circular No. 03/2011/TT-NHNN dated September 28, 2011 on the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches:

1. Clause 1 of Article 1 shall be amended and supplemented as follows:

"1. The maximum interest rate applicable to demand deposits and time deposits with terms under one month is 3% per annum."

2. Clause 2, Article 1 is amended and supplemented as follows:

"2. The maximum interest rate applicable to time deposits with terms of one month or more is 11% per annum; specifically, for People's Credit Cooperatives, the maximum interest rate for time deposits with terms of one month or more is 11.5% per annum."

Article 2. Implementation

1. This Circular takes effect from May 28, 2012 and replaces Circular No. 08/2012/TT-NHNN dated April 10, 2012 of the Governor of the State Bank of Vietnam amending and supplementing certain Articles of Circular No. 30/2011/TT-NHNN dated September 28, 2011 on the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches.

2. For interest rates on deposits in Vietnamese dong with terms of organizations and individuals at credit institutions and foreign bank branches arising before the date this Circular takes effect shall be implemented until their maturity; upon expiration of the agreed term, if the organization or individual does not withdraw the deposit, the credit institution or foreign bank branch shall determine the interest rate on the deposit in accordance with this Circular.

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

4. The Director of the Office, Heads of the Monetary Policy Department and other units under the State Bank of Vietnam, Governors of State Bank of Vietnam branches in provinces and centrally administered cities; Chairmen of Management Boards, Members of Management Boards and General Directors (Directors) of credit institutions and foreign bank branches and related organizations and individuals are responsible for implementing this Circular./.