Circular No. 25/2013/TT-NHNN on the collection and exchange of money not meeting circulation standards

 

CIRCULAR

Regulations on the Collection and Exchange of Currency Not Meeting Circulation Standards

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/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 Decree No. 40/2012/NĐ-CP dated May 2, 2012 of the Government on currency issuance operations; storage and transportation of precious assets and securities within the State Bank of Vietnam system, credit organizations, and foreign bank branches;

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

The Governor of the State Bank of Vietnam issues this Circular regulating the collection and exchange of currency not meeting circulation standards.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the standards for currency not meeting circulation standards; the collection, exchange, selection, packaging, delivery, and receipt of such currency by the State Bank of Vietnam (hereinafter referred to as the State Bank), credit organizations, foreign bank branches, and the National Treasury.

Article 2. Applicability

2. Credit organizations, foreign bank branches, and the National Treasury (hereinafter collectively referred to as collection and exchange units).

3. Organizations and individuals engaging in cash transactions or having a need to exchange currency not meeting circulation standards with the State Bank and collection and exchange units (hereinafter collectively referred to as customers).

Article 3. Currency Not Meeting Circulation Standards

1. Currency not meeting circulation standards refers to paper money (cotton and polymer) and metal coins issued by the State Bank that are currently in circulation but are torn, damaged, or deformed according to the standards for currency not meeting circulation standards set forth in this Circular.

2. The State Bank shall announce typical samples of currency not meeting circulation standards as a basis for the collection, exchange, selection, and classification of currency.

Chapter II
REGULATIONS ON STANDARDS, SELECTION, COLLECTION, AND EXCHANGE OF CURRENCY NOT MEETING CIRCULATION STANDARDS

Article 4. Standards for Currency Not Meeting Circulation Standards

a) Paper money that has changed color, faded images, letters, or numbers; wrinkled, torn, blurred, dirty, old; torn into pieces or patched together but still intact;

b) Metal coins that are worn, rusted, partially or completely damaged in terms of images, patterns, letters, or numbers and the plating on the coin.

a) Paper money with holes, torn parts; patched together; burned or deformed due to high heat exposure; printed paper, colors, and security features of the currency altered by chemicals (such as cleaning agents, acids, corrosive substances...); written, drawn, erased; the currency deteriorated or deformed for other reasons but not due to deliberate destruction;

b) Metal coins bent, warped, changed shape, or design due to external force or high temperature; corroded due to chemical contact.

3. Technical defects caused by printing or minting errors by the manufacturer, such as folded paper causing loss of image or ink color, ink stains, and other errors in the printing or minting process.

Article 5. Selection of banknotes not meeting circulation standards

1. During the process of receiving and disbursing cash with customers, branches of the State Bank of Vietnam, the State Bank of Vietnam's Trading Department, and exchange units must carry out selection, classification, and recovery of banknotes that do not meet circulation standards.

3. During the receipt of cash from exchange units, branches of the State Bank of Vietnam and the State Bank of Vietnam's Trading Department have the right to inspect a sample of the received bundles; if the ratio of banknotes not meeting circulation standards exceeds 5% of the total number of bundles meeting circulation standards inspected, they shall refuse to accept all the money submitted by the unit and simultaneously require the unit to reselect.

Article 6. Exchange of banknotes not meeting circulation standards

1. For banknotes not meeting circulation standards as stipulated in Clause 1 and Clause 3 of Article 4 of this Circular, branches of the State Bank of Vietnam, the State Bank of Vietnam's Trading Department, and exchange units are responsible for immediately carrying out collection and exchange for customers who request it, without limiting quantity, and without requiring documentation.

2. For banknotes not meeting circulation standards as stipulated in Clause 2 of Article 4 of this Circular, customers submit physical items to branches of the State Bank of Vietnam, the State Bank of Vietnam's Trading Department, and exchange units. These units receive and examine exchanges based on the following conditions:

a) Torn, damaged banknotes not due to destructive acts;

b) In cases where a banknote is burned, punctured, or torn with a missing part, the remaining area must be equal to or greater than 60% of the area of the same type of banknote; if repaired with adhesive, the minimum area must be 90% of the area of the same type of banknote and must maintain the original layout (front and back; top and bottom; left and right sides) while ensuring recognition of security features;

For polymer banknotes that are burned or shrunk due to high heat exposure, the remaining area must be at least 30% of the area of the same type of banknote and must retain the original layout while ensuring recognition of at least two security features such as: hidden image in small window, colorless fluorescent ink, fluorescent serial number, security thread, IRIODIN element, portrait of President Ho Chi Minh.

Based on the conditions for examination and exchange stipulated in this Clause, branches of the State Bank of Vietnam, the State Bank of Vietnam's Trading Department, and exchange units shall carry out exchanges for customers. If the conditions for exchange are not met, branches of the State Bank of Vietnam, the State Bank of Vietnam's Trading Department, and exchange units shall return the items to the customer and inform the reason.

In cases where banknotes cannot be determined for exchange and require appraisal, customers must provide a request for exchange (as attached Appendix No. 01).

Article 7. Appraisal of banknotes not meeting circulation standards

1. In cases where banknotes cannot be determined for exchange and require appraisal, within three working days from the date of receiving the customer's physical items, exchange units shall transfer the items along with an appraisal request form (as attached Appendix No. 02) to the branch of the State Bank of Vietnam in the locality for appraisal. For the State Bank of Vietnam's Trading Department, they shall transfer the items along with an appraisal request form to the Issuance and Treasury Department.

2. Within three working days from the date of receiving the appraisal request from the exchange unit, the branch of the State Bank of Vietnam shall notify the result of the appraisal in writing and return the items to the requesting unit. In cases where the appraisal cannot be conducted, within seven working days from the date of receiving the items and the appraisal request from the exchange unit or the customer's exchange request, the branch of the State Bank of Vietnam shall transfer the items along with the appraisal request form to the Issuance and Treasury Department or the Issuance and Treasury Sub-department in Ho Chi Minh City for appraisal.

3. Within five working days from the date of receiving the appraisal request from the branch of the State Bank of Vietnam and the State Bank of Vietnam's Trading Department, the Issuance and Treasury Department or the Issuance and Treasury Sub-department in Ho Chi Minh City shall notify the result of the appraisal in writing and return the items to the requesting unit.

4. The requesting unit shall organize the transportation of banknotes not meeting circulation standards and bear responsibility for ensuring safety during transportation.

Article 8. Handling Damaged Currency Suspected to be Due to Destruction Acts

In cases where damaged currency suspected to be due to destruction acts is discovered, the State Bank branch, the State Bank Trading Department, and the exchange unit shall prepare a record, temporarily seize the items, and immediately transfer them to the police station at the commune or district level for investigation and appraisal. The conclusion of the police agency serves as the basis for the units to exchange for customers or handle the items according to the provisions of the law.

Chapter III
PACKAGING AND HANDLING OF NON-CIRCULATING CURRENCY CIRCULATION

Article 9. Packaging Non-Circulating Currency

1. After collecting, exchanging, and selecting non-circulating currency, the exchange unit shall count, package, seal, and store it in accordance with the current regulations of the State Bank. The customer's request for exchange shall be kept at the exchange unit for necessary verification purposes.

2. When receiving non-circulating currency from exchange units, the State Bank branch, the State Bank Trading Department shall be responsible for checking the conditions for exchange before packaging and sealing in accordance with the current regulations.

In cases where deformed currency cannot be bundled, the Central Treasury, the State Bank branch, and the State Bank Trading Department shall package it according to the following method: 100 pieces of the same denomination into one small bag, 10 small bags into one large bag, and 10 large bags into one bundle. The currency bundle shall be sealed and lead-sealed in accordance with the current regulations.

3. In cases where there is insufficient quantity to form a bundle (or bag), the State Bank branch, the State Bank Trading Department, and the exchange unit shall separately package and store them for convenience in counting and handling.

Article 10. Handing Over Non-Circulating Currency

1. The handover of non-circulating currency between the exchange unit and the State Bank branch, the State Bank Trading Department shall be carried out in accordance with the current regulations on currency handover of the State Bank; the schedule for handover shall be determined by the Director of the State Bank branch and the Director of the State Bank Trading Department.

2. The handover of non-circulating currency between the State Bank branch, the State Bank Trading Department and the Central Treasuries and the State Bank branch in the province of Bình Định shall be carried out in accordance with the current regulations on cash handover within the State Bank system.

Chapter IV
RESPONSIBILITIES OF UNITS

Article 11. Issuance Department and Treasury

1. Develop and submit to the Governor for publication the exemplary models of non-circulating currency as stipulated in Clause 2, Article 3 of this Circular.

2. Guide and inspect relevant units in the implementation of this Circular.

Article 12. State Bank Branches, State Bank Trading Departments

1. Carry out the collection and exchange of non-circulating currency for organizations and individuals.

2. Publicly display the exemplary models and regulations on the collection and exchange of non-circulating currency of the State Bank at the transaction locations.

3. The State Bank branch shall guide and inspect the collection, exchange, and selection of non-circulating currency by credit institutions, foreign bank branches, and the National Treasury within its jurisdiction.

Article 13. Credit organizations, foreign bank branches, State Treasury

1\. Select and classify non-circulating standard currency.

2\. Implement the collection and exchange of non-circulating standard currency for organizations and individuals.

3\. Publicly post exemplary models and regulations on the collection and exchange of non-circulating standard currency issued by the State Bank at transaction locations.

Chapter V
IMPLEMENTING PROVISIONS

Article 14. Effective Date

1\. This Circular takes effect from January 20, 2014.

2\. Decision No. 24/2008/QĐ-NHNN dated August 22, 2008 of the Governor of the State Bank promulgating the Regulations on Collection and Exchange of Non-Circulating Standard Currency shall cease to be effective from the date this Circular takes effect.

Article 15. Handling Violations

Units that violate the provisions of this Circular will be subject to disciplinary action, administrative handling, compensation for damages, or criminal liability追究责任，具体取决于违规性质和程度。

Article 16. Implementation Organization

The Head of the Office, the Director of the Issuance and Treasury Department, the Heads of units under the State Bank, the Governors of the State Bank branches in provinces and cities; the Chairmen of the Management Boards; the General Managers (Directors) of credit organizations, foreign bank branches, and the Directors of the State Treasury are responsible for implementing this Circular./.

 

APPENDIX 01

APPLICATION FOR EXCHANGE OF NON-CIRCULATING STANDARD CURRENCY

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

- Customer Name:...

- Identity Card Number:...Issued by:...Date of Issue:...

- Address:...

- Telephone:...

We request your bank to consider collecting and exchanging the non-circulating standard currency as follows:

+ Amount in figures:...

(In words:…)

+ Reason:

.........................................................................................................................

.........................................................................................................................

 

..., day ... month ... year ...

* Note:

- The collecting/exchanging unit shall provide the customer with one copy of the application form, signed by the head of the unit and stamped.

- It may be necessary to list non-circulating standard currency separately if required.

 

APPENDIX 02

APPLICATION FOR INSPECTION OF NON-CIRCULATING STANDARD CURRENCY

CIRCULATION

* It may be necessary to list non-circulating standard currency separately if required.