Decision No. 1839/2005/QD-NHNN on the exchange of overdue payment bills

Pursuant to …;

On the exchange of payment banknotes beyond their circulation period

GOVERNOR OF THE STATE BANK OF VIETNAM 

Pursuant to the Law on the State Bank of Vietnam 1997; the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

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

Pursuant to Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

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

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

DECIDES:

Article 1. Scope of application

This Decision stipulates the State Bank of Vietnam's procedures for exchanging payment banknotes beyond their circulation period for organizations and individuals (hereinafter referred to as customers).

Article 2. Conditions for the exchange of payment banknotes beyond their circulation period

1. Issued by the State Bank of Vietnam;

2. Retaining the original form and size of the banknote. In cases where the banknote is damaged or torn, it must meet the conditions set forth in current regulations of the State Bank regarding the exchange of banknotes that do not meet circulation standards;

3. In cases of pasting, only banknotes pasted from two pieces of the same banknote with an area larger than 90% of the standard banknote will be considered for exchange.

Article 3. Procedures for exchanging payment banknotes beyond their circulation period

1. Customers wishing to exchange payment banknotes beyond their circulation period must submit a request form (annexed to this Decision) and the banknotes to the State Bank branch in provinces or centrally-administered cities or the State Bank Trading Department (hereinafter referred to as the exchange unit);

2. The exchange unit shall be responsible for inspecting the customer’s banknotes beyond their circulation period. If they meet the conditions stipulated in Article 2 of this Decision, the unit shall temporarily accept the items and confirm on the customer's request form (which consists of two identical copies, one retained by the exchange unit and one by the customer). Monthly, the unit shall compile and report to the State Bank of Vietnam (Issue and Treasury Department) according to the statistical reporting system of the State Bank. If the banknotes do not meet the conditions stipulated in Article 2 of this Decision, they shall be returned immediately to the customer along with a clear explanation of the reasons for non-exchange.

3. Within seven working days from the date of receipt of the report from the exchange unit, the Issue and Treasury Department shall be responsible for checking and verifying the quantity of issued banknotes to be recovered, thereby deciding whether to accept (or reject) the payment of banknotes beyond their circulation period submitted by the customer and notify the result in writing to the exchange unit.

4. Within five working days from the date of receipt of the notification from the Issue and Treasury Department, the exchange unit must inform the customer to proceed with the exchange of banknotes beyond their circulation period and charge fees as stipulated in Article 5 of this Decision, or provide the reason for non-exchange.

Article 4. Handling counterfeit or suspected counterfeit payment banknotes

In cases where counterfeit or suspected counterfeit banknotes are discovered during the exchange process, the exchange unit shall handle them according to the current regulations of the State Bank as applicable to counterfeit or suspected counterfeit currency.

Article 5. Fees for exchanging payment banknotes beyond their circulation period

The fee for exchanging payment banknotes beyond their circulation period is 5% (five percent) of the total value of the accepted banknotes and shall be recorded as business income of the exchange unit.

Article 6. Packaging, Delivery and Receipt of Overdue Negotiable Payment Instruments Beyond Their Circulation Period

The counting, packaging, delivery, and storage of overdue negotiable payment instruments beyond their circulation period after exchange shall be carried out in accordance with the current regulations of the State Bank of Vietnam on the delivery, storage, and transportation of cash, precious assets, and valuable papers.

Article 7. Termination Date for Exchange of Overdue Negotiable Payment Instruments Beyond Their Circulation Period

The provisions for exchanging overdue negotiable payment instruments beyond their circulation period under this decision shall be implemented until December 31, 2007; from January 1, 2008, the State Bank of Vietnam will terminate the exchange of overdue negotiable payment instruments beyond their circulation period.

Article 8. Effectiveness and Responsibility for Implementation

1. This Decision shall take effect fifteen days from the date of publication in the Official Gazette and shall replace Decision No. 324/1999/QĐ-NHNN6 dated September 15, 1999, issued by the Governor of the State Bank of Vietnam on the Regulations on the Exchange of Overdue Negotiable Payment Instruments Beyond Their Circulation Period; Decision No. 1345/2001/QĐ-NHNN dated October 29, 2001, issued by the Governor of the State Bank of Vietnam regarding amendments and supplements to certain articles of the Regulations on the Exchange of Overdue Negotiable Payment Instruments Beyond Their Circulation Period promulgated together with Decision No. 324/1999/QĐ-NHNN6 dated September 15, 1999.

2. The Director of the State Bank of Vietnam's Office, the Director of the Issuance and Treasury Department, the Heads of relevant units under the State Bank of Vietnam, the Directors of the State Bank of Vietnam's Transaction Departments, and the Directors of the State Bank of Vietnam's provincial and centrally-administered city branches are responsible for implementing this Decision./.

ANNEX:

APPLICATION FOR EXCHANGE OF OVERDUE NEGOTIABLE PAYMENT INSTRUMENTS BEYOND THEIR CIRCULATION PERIOD

    Respectfully submitted to: ...........................................................................

Name of Customer: …

ID Number (or other valid identification): …

Address: …

Phone: …

List of overdue negotiable payment instruments (NPTT) beyond their circulation period:

Amount in Words: ..............................................................................................

Requesting the State Bank of Vietnam …to consider and exchange.

(Note: The application is prepared in two copies, one copy retained by the customer and one copy retained by the bank for verification. Within a maximum period of sixty days from the date of receipt of the application and the negotiable payment instruments, the bank has the responsibility to exchange or notify the customer of the reasons for non-exchange. After completing the exchange, the bank must collect the customer's application)