Decision No. 1722/2004/QD-NHNN Issuing the Regulation on the Recall and Exchange of Banknotes Not Meeting Circulation Standards

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

Issuing the Regulation on the Withdrawal and Exchange of Banknotes and Coins Not Meeting Circulation Standards

 

GOVERNOR OF THE STATE BANK OF VIETNAM

 

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank No. 10/2003/QH11 dated June 17, 2003;

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 Government's Decree No. 87/1998/NĐ-CP dated October 31, 1998 on the issuance, withdrawal, and replacement of banknotes and coins;

At the proposal of the Director of the Issuance and Treasury Department,

 

DECISION:

 

Article 1. This Decision promulgates the "Regulation on the Withdrawal and Exchange of Banknotes and Coins Not Meeting Circulation Standards."

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette and shall supersede Decision No. 1344/2001/QĐ-NHNN dated October 29, 2001 of the Governor of the State Bank of Vietnam on the withdrawal and exchange of banknotes not meeting circulation standards.

Article 3. The Director of the State Bank of Vietnam’s Office, the Director of the State Bank of Vietnam’s Issue and Treasury Department, the Heads of relevant units under the State Bank of Vietnam, the Directors of the State Bank of Vietnam’s Branches, the Directors of the State Bank of Vietnam’s provincial and municipal branches, the General Directors (Directors) of credit organizations, and the National Treasury are responsible for implementing this Decision.

 

REGULATIONS

 

WITHDRAWAL AND EXCHANGE OF BANKNOTES AND COINS NOT MEETING CIRCULATION STANDARDS

(issued together with Decision No. 1722/2004/QĐ-NHNN dated December 31, 2004)

of the Governor of the State Bank)

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Regulation stipulates the procedures for the withdrawal, exchange, packaging, and delivery of banknotes and coins not meeting circulation standards by the State Bank of Vietnam, credit organizations, and the National Treasury.

Article 2. Banknotes and coins not meeting circulation standards

1. Banknotes and coins not meeting circulation standards refer to banknotes made of paper, polymer, and coins issued by the State Bank of Vietnam that are legally circulating but are torn, damaged, or deformed, classified according to the criteria set forth by the State Bank of Vietnam.

2. During each period, the State Bank of Vietnam will provide guidance on the criteria for banknotes and coins not meeting circulation standards as a basis for selecting, withdrawing, and exchanging such banknotes and coins.

Article 3. Responsibilities for the withdrawal and exchange of banknotes and coins not meeting circulation standards

The provincial and municipal branches of the State Bank of Vietnam (referred to hereinafter as the State Bank branches), the State Bank of Vietnam’s Transaction Departments, credit organizations, and the National Treasury (hereinafter collectively referred to as the withdrawal-exchange units) are responsible for withdrawing and exchanging banknotes and coins not meeting circulation standards for organizations and individuals, and publicly posting the State Bank of Vietnam’s criteria for banknotes and coins not meeting circulation standards at transaction locations.

Chapter II

BANKNOTES AND COINS NOT MEETING CIRCULATION STANDARDS

Article 4. Classification of banknotes and coins not meeting circulation standards

1. Banknotes and coins deformed or damaged during circulation

a) Banknotes and polymer banknotes wrinkled, torn, soiled; patched or glued back together; missing corners (each edge of the note does not exceed 10 mm); faded colors, images, patterns, letters, and numbers due to age or wear from circulation; b) Coins worn, partially or completely damaged in terms of images, patterns, letters, numbers, and plating due to circulation.

b) Metal coins that are worn down, partially or entirely damaged in terms of their images, designs, letters, numbers, and plating due to circulation.

2. Banknotes and coins deformed or damaged during storage

a) Banknotes and polymer banknotes stained with ink; punctured, torn, burned, or deformed due to high heat exposure; paper, color, and technical security features of the banknote deformed due to chemical effects (such as cleaning agents, acids, corrosive substances...); written or drawn on; banknotes deteriorated or deformed for other reasons.

b) Coins bent, skewed, changed in shape, design due to external force or high temperature; corroded due to contact with chemicals that corrode metal.

Article 5. Banknotes and coins not meeting circulation standards eligible for exchange

Banknotes and coins not meeting circulation standards eligible for exchange must meet the following conditions:

1. Issued by the State Bank of Vietnam and currently legally circulating;

2. Damaged or deformed not due to deliberate destruction;

3. In cases where a banknote is burned, punctured, or torn, the remaining area must be equal to or greater than 60% of the original banknote's area; if two pieces of the same denomination and type are glued together, the combined area must be larger than 90% of the original banknote's area.

For polymer banknotes burned or deformed due to high heat exposure, the remaining area is determined based on the overall layout, images, patterns, and remaining technical security features of the banknote.

Chapter III

WITHDRAWAL AND EXCHANGE OF BANKNOTES AND COINS NOT MEETING CIRCULATION STANDARDS

Article 6. Selection and classification of banknotes and coins

During the process of cash transactions with organizations and individuals (hereinafter collectively referred to as customers), the withdrawal-exchange units must carry out the selection, classification, and withdrawal of banknotes and coins not meeting circulation standards as stipulated in Clause 1, Article 4 of this Regulation.

Article 7. Exchange of banknotes and coins not meeting circulation standards

1. For banknotes and coins not meeting circulation standards as stipulated in Clause 1, Article 4 of this Regulation, the withdrawal-exchange units shall exchange for customers upon request without requiring documentation and without charging fees.

2. For banknotes and coins not meeting circulation standards as stipulated in Clause 2, Article 4 of this Regulation, customers submit physical items and a request form for exchanging banknotes and coins not meeting circulation standards (with attached templates) to the withdrawal-exchange units.

If deemed eligible for exchange, the withdrawal-exchange unit shall immediately exchange for the customer and charge the fee for exchanging banknotes and coins not meeting circulation standards as stipulated in Article 9 of this Regulation. If not eligible for exchange, the withdrawal-exchange unit shall return the items to the customer and inform them of the reason for non-exchange.

Article 8. Appraisal of banknotes and coins not meeting circulation standards

1. In cases where it is unclear whether banknotes and coins not meeting circulation standards are eligible for exchange or which category they fall under as stipulated in Article 4 of this Regulation, within five working days from the date of receipt of the physical items from the customer, credit organizations and the National Treasury shall transfer the physical items along with an appraisal request form (with attached templates) to the corresponding State Bank branch for appraisal. The State Bank of Vietnam’s Transaction Departments shall transfer the physical items along with an appraisal request form to the Issue and Treasury Department for appraisal.

2. Within five working days from the date of receiving the appraisal request from the collection-exchange unit, the branch of the State Bank of Vietnam shall notify the result of the appraisal in writing and return the physical items to the requesting unit. In case the appraisal cannot be conducted, within fifteen working days from the date of receiving the physical items and the appraisal request from the collection-exchange unit or the customer's money exchange request, the branch of the State Bank of Vietnam shall transfer the physical items along with the appraisal request form to the Currency Issuance and Treasury Department for appraisal.

3. Within seven working days from the date of receiving the appraisal request from the branch of the State Bank of Vietnam, the State Bank of Vietnam Trading Center, the Currency Issuance and Treasury Department shall notify the result of the appraisal in writing and return the physical items to the requesting unit.

4. The requesting unit shall decide on the method of transporting non-circulating currency based on ensuring the safety of assets during transportation.

Article 9. Fee for exchanging non-circulating currency

1. The fee for collecting and exchanging non-circulating currency as prescribed in Clause 2, Article 7 of this Regulation is as follows:

a) For exchange amounts totaling VND 500,000 or more, the collection and exchange fee is 3% of the total value of the non-circulating currency exchanged;

b) For exchange amounts under VND 500,000, the collection and exchange fee is 4% of the total value of the non-circulating currency exchanged; the minimum fee for each exchange is VND 2,000.

2. The fee for exchanging non-circulating currency shall be recorded as income of the collection-exchange unit.

Article 10. Handling damaged or deformed currency suspected to be due to destructive acts

In cases where damaged or deformed currency suspected to be due to destructive acts is discovered, the collection-exchange unit shall prepare a temporary receipt record and immediately transfer it to the police authority in the area for examination. The conclusion of the police authority serves as the basis for the collection-exchange unit to carry out exchanges for customers or handle the physical items according to the provisions of the law.

Chapter IV

PACKAGING AND HANDLING OF NON-CIRCULATING CURRENCY

Article 11. Packaging of non-circulating currency

1. For polymer money that has been burned or deformed due to contact with high heat sources:

a) After collecting and exchanging, credit organizations and the State Treasury shall store and package polymer money that has been burned or deformed due to contact with high heat sources separately by customer (with copies of the customer's request forms) to submit to the State Bank of Vietnam Trading Center and the branch of the State Bank of Vietnam in the area.

b) After inspecting each exchange item from credit organizations and the State Treasury, if they meet the regulations regarding the conditions for exchange, the branch of the State Bank of Vietnam and the State Bank of Vietnam Trading Center shall package them according to the current regulations on packaging and sealing cash of the State Bank of Vietnam.

In cases where deformed money cannot be bundled, the branch of the State Bank of Vietnam and the State Bank of Vietnam Trading Center shall package them in bags according to the following specifications: 100 sheets of the same denomination per small bag, 10 small bags per large bag, 20 large bags per bundle, if sufficient quantity is available; all bags (both small bags of 100 sheets and large bags of 1,000 sheets) must be sealed and lead-sealed.

c) The packaging of polymer money that has been burned or deformed due to contact with high heat sources by the Central Treasury shall be carried out as stipulated in point b, Clause 1 of this Article.

2. The packaging of other types of non-circulating currency as specified in Article 4 of this Regulation shall be carried out according to the current regulations on packaging and sealing cash of the State Bank of Vietnam.

3. In cases where there is insufficient quantity to bundle (or package), the collection-exchange unit shall package and store separately for convenience in counting and handling.

Article 12. Handover of non-circulating currency

1. Credit organizations and the State Treasury shall submit non-circulating currency to the branch of the State Bank of Vietnam and the State Bank of Vietnam Trading Center according to a schedule determined by the Director of the branch of the State Bank of Vietnam and the Director of the State Bank of Vietnam Trading Center. The handover shall be conducted in bundles or packages that remain sealed; in cases where there is insufficient quantity to bundle or package and for burned polymer money or money that has come into contact with high heat sources, the handover shall be conducted by sheet (or piece).

2. The handover of non-circulating currency between the branch of the State Bank of Vietnam, the State Bank of Vietnam Trading Center, and the Central Treasury and the State Bank of Vietnam Branch in Binh Dinh Province shall be conducted in bundles or packages (1,000 sheets or 1,000 pieces) that remain sealed. If necessary, the Director of the Currency Issuance and Treasury Department may organize the handover by sheet, piece, or in small bags of 100 sheets that remain sealed for deformed polymer money that cannot be bundled as stipulated in point b, Clause 1 of Article 11 of this Regulation.

Chapter V

IMPLEMENTING PROVISIONS

Article 13. Implementation

1. The Director of the Currency Issuance and Treasury Department shall be responsible for submitting to the Governor for issuance of standards for non-circulating currency as prescribed in Clause 2, Article 2 of this Regulation and the specifications for bags and bundles containing deformed polymer money as stipulated in point b, Clause 1 of Article 11 of this Regulation; guiding and supervising the implementation of this Regulation by collection-exchange units.

2. The Director of the branch of the State Bank of Vietnam shall supervise the implementation of this Regulation by collection-exchange units in the area.

Article 14. Effectiveness

Any amendments or supplements to this Regulation shall be decided by the Governor of the State Bank of Vietnam./.