Decision No. 270/2005/QD-TTg On the organization of mobilization, management, and utilization of postal savings deposits

DECISION

Regarding the organization of mobilization, management, and utilization of postal savings funds

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on the State Bank of Vietnam No. 06/1997/QH10 dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;

Pursuant to the Law on Credit Organizations No. 07/1997/QH10 dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations No. 20/2004/QH11 dated June 15, 2004;

Pursuant to the Ordinance on Posts and Telecommunications No. 43/2002/PL-UBTVQH10 dated May 25, 2002;

Considering the proposal of the Minister of Finance,

DECISION:

Article 1

1. The Vietnam Posts and Telecommunications Corporation is authorized to:

a) Organize postal savings services aimed at mobilizing idle funds from residents to supplement capital for investment development, capital for lending to poor households and other policy beneficiaries in accordance with the Government's policy;

b) Provide certain banking services as stipulated in the Law on Credit Organizations No. 07/1997/QH10 dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations No. 20/2004/QH11 dated June 15, 2004.

Article 2

1. Postal savings service organizations shall be allowed to mobilize funds from residents through the following forms:

a) Accepting demand deposits and term deposits;

b) Issuing deposit certificates and other securities in accordance with the provisions of the law.

2. The interest rate for mobilizing postal savings must ensure alignment with market interest rates and be consistent with the prevailing interest rate levels at each point in time.

3. The Vietnam Posts and Telecommunications Corporation shall transfer funds to the Development Support Fund and the Social Policy Bank at the bond interest rate of the Government for the same period issued through the most recent auction in the month. In cases where there is no issuance of Government bonds of the same type in the month, the Development Support Fund and the Social Policy Bank shall work out specific arrangements with the Vietnam Posts and Telecommunications Corporation to determine the interest rate, ensuring it does not exceed the ceiling for the Government bond interest rate for that month announced by the Ministry of Finance to the Development Support Fund and the Social Policy Bank.

Article 3. Postal savings funds shall be centralized and transferred to the postal savings service account opened at commercial banks and used as follows:

1. Retain a portion to ensure regular payments.

2. Transfer funds to the Development Support Fund and the Social Policy Bank for lending in accordance with the Government's policy.

3. Purchase and repurchase securities issued by the Government, State Treasury, local government bonds, Government-guaranteed bonds, treasury bills; repurchase bonds issued by the Social Policy Bank and the Development Support Fund.

Article 4. Postal savings service organizations shall provide the following services:

1. Be allowed to provide customers with the following types of payment services:

a) Providing payment instruments: cash withdrawal checks, automatic cash withdrawal cards, debit card payments in accordance with the regulations of the State Bank of Vietnam;

b) Collection and disbursement services;

c) Opening personal accounts.

2. Be allowed to charge fees when providing payment services. The fee level shall be determined and publicly displayed by the Vietnam Posts and Telecommunications Corporation.

3. Be allowed to handle cash transfers and remittances.

4. Be allowed to act as agents and accept mandates for issuing bonds and other financial agency services when meeting the conditions prescribed by law.

Article 5

1. Postal savings service organizations shall open accounts at the State Bank of Vietnam and commercial banks to implement the above services in accordance with the regulations of the State Bank of Vietnam.

2. Postal savings service organizations shall be responsible for fulfilling tax obligations in accordance with current laws.

3. Postal savings service organizations shall not be required to participate in deposit insurance.

Article 6

1. The Ministry of Finance shall be responsible for guiding, supervising, and inspecting the implementation of the mechanism for transferring, receiving, using, and returning postal savings funds between the Vietnam Posts and Telecommunications Corporation and the Development Support Fund and the Social Policy Bank; informing the Development Support Fund and the Social Policy Bank of the monthly ceiling for the interest rate on Government bonds; implementing state management over finance for postal savings services within the Vietnam Posts and Telecommunications Corporation.

2. The Ministry of Planning and Investment shall compile the plan for transferring funds from postal savings services to the Development Support Fund and the Social Policy Bank, report to the competent authority for approval in the annual economic and social development plan and state budget, and assign the Vietnam Posts and Telecommunications Corporation to implement it.

3. The State Bank of Vietnam shall be responsible for:

a) Licensing, inspecting, and auditing the provision of banking services by the Vietnam Posts and Telecommunications Corporation;

b) Supervising and inspecting the mobilization of funds, interest rates for fund mobilization, money transfers, and security measures for the postal savings service system;

c) Reviewing and approving the amount of regular payment reserves for postal savings services;

d) Supporting the Vietnam Posts and Telecommunications Corporation in training and upgrading the skills of post office staff involved in postal savings and payment services.

4. The Ministry of Posts and Telecommunications shall be responsible for state management of the public postal network used by the Vietnam Posts and Telecommunications Corporation to provide postal savings services. Inspecting and supervising the operation of postal savings services on the public postal network to ensure these activities do not affect the provision and use of public postal services.

5. Vietnam Post and Telecommunications Corporation shall be responsible for coordinating with the Development Support Fund and the Social Policy Bank to establish and unify the annual capital transfer plan, report it to the Ministry of Planning and Investment and the Ministry of Finance; organize the provision of postal savings services and certain banking services in accordance with the provisions of this Decision and the operational regulations of Vietnam Post and Telecommunications Corporation; ensure the safe, efficient use of capital and timely, convenient payment (both principal and interest) to depositors; develop regulations on safety and internal control organization; fully comply with information reporting systems and be subject to inspection, audit, and violation handling by competent state agencies.

6. The Development Support Fund and the Social Policy Bank shall be responsible for coordinating with Vietnam Post and Telecommunications Corporation to unify the annual capital transfer plan, receive and utilize postal savings funds in accordance with government policy; recover loans and fully repay both principal and interest when bonds mature.

Article 7. This Decision shall take effect fifteen days from the date of publication in the Official Gazette. This Decision replaces Decision No. 215/1998/QĐ-TTg dated November 4, 1998 of the Prime Minister.

The Minister of Finance, Governor of the State Bank of Vietnam, and Minister of Posts and Telecommunications shall be responsible for guiding the implementation of this Decision.

Article 8. Ministers, heads of ministerial-level agencies, heads of governmental agencies under the central government, Chairmen of the Management Boards, General Directors of Vietnam Post and Telecommunications Corporation, Chairmen of the Management Councils and General Directors of the Development Support Fund, Chairmen of the Management Boards and General Directors of the Social Policy Bank shall be responsible for implementing this Decision.