Circular No. 29/2024/TT-NHNN on People's Credit Funds

CIRCULAR

Provisions on People's Credit Funds

 

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to the Law on Cooperatives dated June 17, 2023;

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of Banking Inspection and Supervision;

The Governor of the State Bank of Vietnam issues the Circular on the People's Credit Funds.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates certain contents regarding governance, management, organization, and operation of people's credit funds.

Article 2. Applicability

4. Deposit Insurance Corporation of Vietnam.

2. Cooperative banks.

3. Organizations and individuals related to governance, management, organization, and operation of people's credit funds.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. Members of people's credit funds are individuals, households, legal entities meeting the conditions prescribed in this Circular and agreeing to the Charter, voluntarily participating in contributing capital to the people's credit fund.

2. Capital contribution for establishing membership status is the minimum amount of capital contribution required to establish membership status when joining the people's credit fund.

3. Additional capital contribution is additional capital contributed by members, outside the initial capital contribution establishing member status, for the People's Credit Fund to carry out business activities.

Article 4. Term of Operation

The term of operation of people's credit funds recorded in the License for Establishment and Operation (hereinafter referred to as the License) shall not exceed 50 years.

Article 5. Nature and Objectives of Operation

The People's Credit Fund operates under the principle of voluntariness, autonomy, and responsibility for the results of its operations, with the main goal being mutual assistance among members to effectively implement production and business activities and improve living standards.

Article 6. Name of People's Credit Funds

1. The name of people's credit funds must be written in Vietnamese, may include numbers and symbols, must be pronounceable, and must have at least two components in the following order:

a) People's Credit Funds;

b) The specific name must be set in accordance with legal regulations.

2. The name of the People's Credit Fund must be displayed at the headquarters and all dependent units of the People's Credit Fund. The name of the People's Credit Fund must be printed or written on transaction documents, files, and materials issued by the People's Credit Fund.

Article 7. Operating Area

1. The People's Credit Fund operates within the territory of one commune, one ward, or one town (hereinafter referred to collectively as commune). The People's Credit Fund shall not expand its operational territory to another commune outside the commune where its headquarters is located, except in cases provided for in Clause 2 of this Article.

2. The People's Credit Fund may operate in the territory of communes adjacent to the commune where the People's Credit Fund's headquarters is located, within the scope of one province or centrally governed city due to the division or separation of administrative boundaries according to the decision of the competent state authority.

Documents and procedures for requesting amendments and supplements to the License of the People's Credit Fund regarding the operational territory shall be carried out in accordance with the regulations of the Governor of the State Bank of Vietnam on changes that must be approved by the State Bank for credit organizations that are cooperatives.

Chapter II

 SPECIFIC PROVISIONS

Section 1

MEMBERS

Article 8. Conditions for Becoming a Member

1. For individuals:

a) Vietnamese citizens aged 18 or older, having full capacity for civil conduct, registered as permanent residents or temporary residents in the operational territory of the People's Credit Fund. In the case of temporary residence registration, individuals must have production or business activities or be workers employed in the operational territory of the People's Credit Fund and must provide evidence thereof;

b) Staff members working at organizations or agencies whose main offices are located within the operational area of the people's credit cooperative;

c) Not currently being pursued for criminal responsibility, serving a prison sentence; serving administrative measures at compulsory drug rehabilitation centers or compulsory education centers; prohibited from holding certain positions, practicing certain professions, or performing certain tasks by a court; or persons who have been convicted of serious crimes or worse and have not yet had their criminal records expunged.

2. For households:

a) A household consisting of members with permanent residence registration within the operational area of the people's credit cooperative; members of the household share assets to serve the household's production and business activities;

b) Members of a household must appoint one member of the household to act as the representative to exercise the rights and obligations of a member of the People's Credit Fund. The household representative must be authorized in writing by all members of the household in accordance with the law and must meet the conditions stipulated in Clause 1 of this Article.

3. For legal entities:

a) Legal entities (excluding Social Funds and Charity Funds) that are legally operating and have their main office located within the operational area of the people's credit cooperative;

b) The representative of a legal entity participating as a member of the People's Credit Fund is the legal representative of the legal entity or an individual authorized by the legal representative of the legal entity to participate.

4. Individuals, households, and legal entities must submit voluntary applications to become members of the People's Credit Fund according to the forms attached as Appendix No. 01, Appendix No. 02, and Appendix No. 03 issued together with this Circular, agree to the Charter and contribute the required capital contributions as stipulated in Article 10 of this Circular.

5. Each subject specified in Clauses 1, 2, and 3 of this Article may only join as a member of one (1) people's credit cooperative.

6. The Board of Directors decides on the admission of members and compiles the list of admitted members for reporting at the nearest General Assembly meeting.

7. The people's credit cooperative must specify in its Charter the conditions and procedures for admitting members.

Article 9. Termination of Member Status

1. A member of the people's credit cooperative terminates their member status when they fall into one of the following situations:

a) Situations where member status is automatically lost:

(i) The member is an individual who has died or gone missing;

(ii) The member is a legal entity that has ceased to exist;

(iii) The member no longer meets the conditions to become a member as prescribed in Article 8 of this Circular, except for the case stipulated in point c(i) of this clause;

(iv) The member has transferred all their capital contributions to another party in accordance with the law and the Charter of the people's credit cooperative;

b) Voluntary termination: The member voluntarily terminates their membership and receives approval from the Board of Directors;

c) Expulsion: The member is expelled from the people's credit cooperative by the General Assembly due to:

(i) Not maintaining sufficient capital contributions as prescribed in Clause 1 of Article 10 of this Circular;

(ii) Engaging in fraudulent or deceptive behavior regarding membership documentation;

(iii) Other circumstances as prescribed in the Charter of the people's credit cooperative.

2. The Board of Directors decides on the termination of member status and compiles the list for reporting at the nearest General Assembly meeting.

3. The handling of capital contributions by members upon termination of member status as prescribed in Clause 1 of this Article shall be carried out as follows:

a) In the case of termination of member status as prescribed in points a(i), a(ii), and a(iii) of Clause 1 of this Article:

(i) The capital contribution can be transferred in accordance with Clause 1 of Article 12 of this Circular or refunded in accordance with Clause 3 of Article 12 of this Circular;

(ii) In the case of a member being deceased, missing, losing, or having limited capacity for civil conduct: the rights and obligations of the member shall be implemented in accordance with the provisions of civil law;

b) In the case of termination of member status as prescribed in point b of Clause 1 of this Article: The member can transfer their capital contribution in accordance with Clause 1 of Article 12 of this Circular or have their capital contribution refunded in accordance with Clause 3 of Article 12 of this Circular;

b) In the case of termination of member status as prescribed in point b, Clause 1 of this Article: The member may transfer the capital contribution according to the provisions of Clause 1, Article 12 of this Circular or be refunded the capital contribution according to the provisions of Clause 3, Article 12 of this Circular;

c) In the case of termination of member status as prescribed in point c, Clause 1 of this Article: The member may not transfer the capital contribution. The refund of the capital contribution shall be carried out according to the provisions of Clause 3, Article 12 of this Circular.

4. Members terminating their member status shall enjoy benefits (if any) as decided by the Member Assembly after fulfilling all financial obligations as prescribed by law and the Charter of the People's Credit Fund.

Article 10. Capital Contribution of Members

1. The capital contribution of members includes the initial capital contribution to establish member status and additional capital contributions:

a) The minimum level of initial capital contribution to establish member status is 300,000 VND and is specified in the Charter.

b) The level of additional capital contribution shall be implemented in accordance with the Charter.

2. The maximum total capital contribution of a single member of a People's Credit Fund shall not exceed 10% of the charter capital of the People's Credit Fund or another lower ratio as stipulated in the Charter.

3. The Member Assembly decides specifically on the level of capital contribution establishing member status, the level of additional capital contribution, the method of payment, and the maximum total capital contribution of one member as stipulated in Clauses 1 and 2 of this Article.

4. Recording the capital contribution of members as prescribed in Clause 1 of this Article into the charter capital is carried out as follows:

a) The initial capital contribution to establish member status is recorded into the charter capital after the Board of Directors decides to admit new members.

b) Additional capital contributions are recorded into the charter capital after members have completed their capital contributions.

5. Based on the actual capital contributions of members as prescribed in Clause 1 and Clause 2 of this Article, the People's Credit Fund shall implement:

a) Issue Membership Cards according to the model uniformly guided by the cooperative bank throughout the system of People's Credit Funds, and Capital Contribution Books according to the model attached as Appendix No. 04 issued together with this Circular to new members after the Board of Directors decides to admit them as members;

b) Updating changes in the level of capital contributions into the Capital Contribution Books for members after members have completed additional capital contributions.

6. The People's Credit Fund must maintain records of capital contributions; transfers, acquisitions of capital contributions, and refunds of capital contributions of members.

Article 11. Distribution of Profits to Members

Members of the People's Credit Fund are entitled to share profits based on the extent of their use of products and services, the ratio of their capital contribution at the People's Credit Fund, and decisions made by the Member Assembly of the People's Credit Fund, in compliance with the law.

Article 12. Transfer and Refund of Capital Contributions

1. Members may transfer their entire or part of their capital contribution to other members. The transfer of a member's capital contribution must be approved by the Board of Directors and comply with the following requirements:

a) The remaining level of capital contribution (in cases of partial transfer of capital contributions) must meet the regulations on the level of capital contributions of members prescribed in Clause 1 and Clause 2 of Article 10 of this Circular.

b) The transfer of the entire capital contribution can only be carried out after the member has fulfilled their obligation to repay loans and other financial obligations to the People's Credit Fund as stipulated by law and the Charter of the People's Credit Fund;

c) The member receiving the transferred capital contribution must meet the regulations on the maximum total capital contribution of a single member prescribed in Clause 2 of Article 10 of this Circular.

2. The People's Credit Fund shall refund the portion of the capital contribution to the member when terminating their member status or refunding the excess capital contribution beyond the maximum total capital contribution of the member as stipulated in Clause 2, Article 10 of this Circular and the Charter of the People's Credit Fund.

3. The refund of capital contributions to members must satisfy the following conditions fully:

a) For members: Members have fulfilled all financial obligations to the People's Credit Fund, including:

(i) All debts (principal and interest) of the member;

(ii) Losses for which the member is responsible for compensating; 

(iii) Business losses and risks corresponding to the proportion of capital contributions that the member shares responsibility for according to the decision of the General Assembly of Members.

b) For the People's Credit Fund:

(i) Not reducing the actual value of the charter capital of the People's Credit Fund below the statutory capital;

(ii) Not violating the minimum capital adequacy ratio, the ratio of funds received from members, and the purchase and investment in fixed assets of the People's Credit Fund before and after refunding the capital contribution to the member;

(iii) The amount of capital contribution refunded to members in cases of full refund of capital contributions is determined according to the following formula:

A = B - C

Wherein: A: The amount of capital contribution refunded to the member.

                B: The total amount of capital contribution establishing member status and additional capital contribution as stipulated in Clause 1, Article 10 of this Circular.

C ||| The financial obligations of members must be carried out in accordance with the provisions set forth in point a of this clause.

4. The refund of capital contributions when a member terminates their status as prescribed in point c of Clause 1 of Article 9 of this Circular must be approved by the General Assembly of Members.

The return of capital contributions when a member ceases their status as a member in accordance with the provisions set forth in points a(i), a(ii), a(iii), and point b of Clause 1, Article 9 of this Circular shall be decided by the Board of Directors and reported to the General Meeting of Members at the nearest General Meeting of Members.

5 ||| Monthly, no later than the fifth day of the following month, the people's credit cooperative must report to the State Bank branch in the province or centrally governed city where the people's credit cooperative has its main office (hereinafter referred to as the State Bank branch) on the transfer of shares of capital contributions for members with a shareholding ratio from 5% to 10% of the charter capital of the people's credit cooperative.

Article 13. Amendment of Registered Capital

1. The Board of Directors decides on increasing or decreasing the registered capital and reports to the Member Assembly at the nearest Member Assembly meeting in the following cases:

a) Receiving contributions from members due to admitting new members or additional contributions from existing contributing members;

b) Returning contributions to members who cease their membership status according to points a(i), a(ii), a(iii), and b of Clause 1, Article 9 of this Circular.

2. The General Assembly of Members decides on increasing or decreasing the level of charter capital in the following case:

a) Using the supplementary capital reserve fund, other funds as prescribed by law, and other lawful sources to supplement the registered capital;

b) Returning contributions to members who cease their membership status according to point c of Clause 1, Article 9 of this Circular.

3 ||| Monthly, no later than the fifth day of the following month, the people's credit cooperative must report to the State Bank branch on the number of new members admitted, the number of members expelled, the total amount of capital contributions made by members, and the total amount of capital contributions refunded in the month to carry out management and supervision work.

4 ||| The procedure and dossier for requesting amendments and supplements to the License of the people's credit cooperative regarding the actual charter capital shall be implemented in accordance with the regulations of the Governor of the State Bank concerning changes that must be approved by the State Bank for credit institutions that are cooperatives.

Section 2

||| GENERAL MEETING OF MEMBERS

Article 14. Summoning the Member Assembly

1. The Board of Directors shall convene the annual Member Assembly within four months from the end of the fiscal year.

2 ||| The General Meeting of Members may be organized in the form of a General Assembly of All Members or a General Assembly of Member Representatives (collectively referred to as the General Meeting of Members). The General Assembly of All Members or the General Assembly of Member Representatives have the same duties and powers.

3. The number of representatives attending the Representative Meeting of Members is stipulated in the Charter of the people's credit cooperative but must not be less than 100 representatives.

4 ||| The criteria for representatives and the procedures for electing representatives to attend the General Assembly of Member Representatives are stipulated in the Charter of the people's credit cooperative. The election of member representatives to attend the General Meeting of Members must be based on the principles of democracy and equality among members. Elected member representatives cannot delegate others to attend the General Meeting. Representatives attending the General Assembly of Member Representatives must express the opinions, wishes, and have the responsibility to inform all members they represent about the results of the assembly.

5. An extraordinary Member Assembly may be convened in the following circumstances:

a) The Board of Directors convenes to resolve issues exceeding its authority;

b) The Board of Directors convenes upon the request of the Supervisory Board or at least one-third of the total number of members of the people's credit cooperative;

c) The Board of Directors convenes upon the request of the State Bank branch in case of events affecting the safety of the operations of the people's credit cooperative;

d) The Chairman of the Board of Directors convenes if it is not possible to hold a regular meeting of the Board of Directors after two consecutive calls;

d ||| Other cases as prescribed in the Charter of the people's credit cooperative. The people's credit cooperative must report to the State Bank branch on the reasons, content, time, and form of organizing an extraordinary General Meeting of Members at least ten days before the planned date of organization.

6. The summoning of an extraordinary Member Assembly for the cases specified in points b and c of Clause 5 of this Article shall be carried out as follows:

a ||| Within fifteen days from the date of receiving the request of the Supervisory Board or at least one-third of the total number of members of the people's credit cooperative or upon the request of the State Bank branch, the Board of Directors must convene an extraordinary General Meeting of Members;

b ||| In case the Board of Directors does not convene an extraordinary General Meeting of Members within fifteen days from the date of receiving the request of the Supervisory Board or at least one-third of the total number of members of the people's credit cooperative or upon the request of the State Bank branch, or within four months from the end of the fiscal year if the Board of Directors does not convene an annual General Meeting of Members, then the Supervisory Board has the right to convene an extraordinary General Meeting of Members;

c ||| Within fifteen days from the date the Supervisory Board has the right to convene but does not convene an extraordinary General Meeting of Members as prescribed in point b of this clause, a member representing at least one-third of the total number of members of the people's credit cooperative has the right to convene a General Meeting of Members. The appointment of member representatives must be recorded in a minutes book and signed by all members proposing to convene the General Meeting of Members.

7 ||| In case the Board of Directors does not convene a General Meeting of Members as prescribed in Clause 1 and point a of Clause 6 of this Article, the Board of Directors must compensate for the losses incurred for the people's credit cooperative according to the provisions of the law and the Charter of the people's credit cooperative. In case the Supervisory Board does not convene a General Meeting of Members as prescribed in point b of Clause 6 of this Article, the Supervisory Board must compensate for the losses incurred for the people's credit cooperative according to the provisions of the law and the Charter of the people's credit cooperative.

8. The Member Assembly is chaired by the convener, except when the Member Assembly decides to elect another member to chair.

9 ||| The General Meeting of Members shall be held when at least seventy-five percent of the total number of members or member representatives called to attend are present, but not less than one hundred representatives (for the General Assembly of Member Representatives); in case the number of members is insufficient, the organization of the General Meeting of Members must be postponed.

In case the first General Meeting of Members does not meet the conditions for holding, it shall be convened again within thirty days from the planned date of the first meeting. In this case, before proceeding, the convener must send a written report to the State Bank branch explaining the reasons for not being able to hold the first General Meeting of Members and the expected date of the second General Meeting of Members. The second General Meeting of Members shall be held when at least fifty percent of the total number of members or member representatives called to attend are present.

In case the second General Meeting of Members does not meet the conditions for holding, it shall be convened again within twenty days from the planned date of the second meeting. In this case, before proceeding, the convener must send a written report to the State Bank branch explaining the reasons for not being able to hold the second General Meeting of Members and the expected date of the third General Meeting of Members. The third General Meeting of Members shall be held regardless of the number of members or member representatives present.

10 ||| The General Meeting of Members may be organized in the form of a direct meeting, an online meeting, or a combination of a direct meeting and an online meeting. The selection of the form of organizing the General Meeting of Members is carried out in accordance with the provisions of the Charter of the people's credit cooperative.

11. The meeting of the Members' Assembly must be recorded in minutes, which may also be audio or video recorded to provide to members upon request. The minutes of the meeting must bear the signatures of the chairperson and secretary. In case the chairperson or secretary refuse to sign, the minutes of the meeting shall be valid if more than 50% of the attending members agree to approve the content of the minutes; the minutes must clearly record the refusal of the chairperson or secretary to approve the content of the minutes. The person signing the minutes of the meeting shall be jointly liable for the accuracy and truthfulness of the minutes of the meeting.

Article 15. Preparing the General Meeting of Members

1. The convener of the Members' Assembly must prepare a list of members and representatives entitled to attend; prepare the agenda, content, documents, and draft resolutions; send out the notice of convening at least seven days before the opening date of the annual Members' Assembly or five days before the opening date of the extraordinary Members' Assembly. The content of the notice of convening must clearly specify the time, place, form, and program of the meeting. The notice of convening may be sent by paper copy, electronic version, or other methods prescribed by the Regulations of the Credit Cooperative.

2. The content of the agenda may be changed if at least one-third of the total number of members propose in writing to amend the same content. The proposal must clearly state the name of the member and the content of the proposal.

The content of the proposal must be sent to the convener of the General Meeting of Members at least three days before the organization of the General Meeting of Members.

For the extraordinary Members' Assembly, in case there is a proposal regarding the content, the convener will consider supplementing it into the agenda of the extraordinary Members' Assembly or including it in the agenda of the next extraordinary Members' Assembly.

3. The convener of the General Meeting of Members only has the right to reject the proposal provided for in Clause 2 of this Article if it falls under one of the following circumstances:

a) The proposal was sent beyond the deadline;

b) The content of the proposal does not fall within the decision-making authority of the General Meeting of Members;

c) Other cases as prescribed by the Articles of Association of the People's Credit Fund.

4. In case of rejecting a proposal, the convener must report to the General Meeting of Members before voting to approve the program of the General Meeting of Members.

Article 16. Participation and Voting in the General Meeting of Members

1. A member or representative is deemed to have attended and voted at the Members' Assembly meeting in the following cases:

a) Participating and voting directly at the meeting;

b) Participating and voting through an online form.

2. The following contents shall be approved by the General Meeting of Members when at least 75% of the total number of votes cast by participating members and representatives agree:

a) Amending and supplementing the Articles of Association of the People's Credit Fund;

b) Approving the investment, purchase, or sale of fixed assets of the credit cooperative where the level of investment, the expected purchase price, or the original cost in the case of selling fixed assets is valued at 20% or more of the charter capital of the credit cooperative as recorded in the audited financial report most recently prepared or the latest financial report in case the credit cooperative is not required to undergo auditing or a lower ratio as stipulated by the Regulations of the Credit Cooperative.

c) Deciding on the organizational structure of the People's Credit Fund;

d) Splitting, dividing, merging, consolidating, or voluntary dissolution.

3. Contents not covered in Clause 2 of this Article shall be approved when more than 50% of the total number of votes cast by participating members and representatives agree.

4. Each attending member of the general assembly has one vote of equal value, regardless of their share capital contribution or position. Each representative attending the representative assembly has a number of votes equal to the number of members who elected that representative to attend the representative assembly.

5. Ballots and tally sheets at the General Meeting of Members must be stored.

Section 3

BOARD OF DIRECTORS

Article 17. Term of Office of the Chairman of the Board of Management and Members of the Board of Management

1. The Chairman of the Board of Management shall hold office for no more than two consecutive terms.

2. The term of office of the Chairman of the Board of Management and members of the Board of Management shall be in accordance with the term of the Board of Management.

Article 18. Meetings of the Board of Management

1. The Board of Management shall convene regular meetings in accordance with the provisions of the Charter and must ensure the full performance of its duties as prescribed by law at least once a month.

2. The Board of Management shall convene extraordinary meetings when requested by any of the following entities:

a) The Chairman of the Board of Directors;

b) General Director;

c) The Head of the Supervisory Board;

d) At least one-third of the total number of members of the Board of Management.

3. The meeting of the Board of Management shall be conducted as follows:

a) The meeting of the Management Board is held when at least two-thirds of the total number of Management Board members are present. Decisions of the Management Board are passed according to the majority principle, with each member having one vote of equal value. In case of a tie, the content approved by the Chairman of the Management Board or the person authorized by the Chairman of the Management Board to chair the meeting is the content passed;

b) In case of a regular meeting of the Management Board but not enough members are present, the Chairman of the Management Board calls a second meeting of the Management Board within fifteen days from the scheduled date of the first meeting. In this case, the meeting can proceed if more than 50% of the Management Board members are present;

c) In case the second call for a meeting of the Management Board still does not have enough members present, the Chairman of the Management Board calls an extraordinary Members' Assembly within thirty days from the scheduled date of the second meeting. The Chairman of the Management Board reports to the extraordinary Members' Assembly to review the qualifications of Management Board members who did not attend the previous two meetings and proposes measures to address the situation;

d) The meeting of the Management Board must be recorded in minutes, which may also be audio or video recorded to provide to members upon request. The minutes of the meeting must bear the signatures of the chairperson and secretary. Management Board members have the right to reserve their opinions and have them recorded in the minutes of the meeting. In case the chairperson or secretary refuse to sign, the minutes of the meeting shall be valid if more than 50% of the attending members agree to sign; the minutes of the meeting must clearly record the refusal of the chairperson or secretary to sign. The person signing the minutes of the meeting shall be jointly liable for the accuracy and truthfulness of the minutes of the meeting.

4. In case the content approved by the Management Board contravenes the provisions of the law, the resolution of the Members' Assembly, or the Regulations, causing damage to the credit cooperative, those members who agreed to the content must jointly bear personal responsibility and compensate for the damage to the credit cooperative in accordance with the law; opposing members are exempted from liability and have the right to request the court to suspend implementation or revoke such content.

Article 19. Conditions and Standards for the Chairman of the Board of Management and Members of the Board of Management

1. Members of the Board of Management must meet the following conditions and standards:

a) For people's credit cooperatives with total assets under 200 billion VND:

(i) Being an individual member or the representative of the capital contribution of a corporate member;

(ii) Residing in the operational area of the people's credit cooperative;

(iii) Having sufficient health to meet the requirements of work;

(iv) Not falling under the circumstances stipulated in Articles 42 and 43 of the Law on Credit Organizations;

(v) Having professional ethics;

(vi) Having at least one year of experience as a manager or operator of a financial institution or at least two years of experience as a manager of a business operating in the finance, banking, accounting, or auditing industry, or at least three years of direct work experience in a department specializing in finance, banking, accounting, or auditing;

(vii) Having a college degree in one of the fields of finance, banking, accounting, auditing, business administration, or law and holding a certificate (certificate) proving training in credit cooperative operations under the Credit Cooperative Operations Training Program of the State Bank of Vietnam, or having a higher education degree in one of the fields of finance, banking, accounting, auditing, business administration, or law, or having a bachelor's degree or higher;

b) For people's credit cooperatives with total assets from 200 billion VND to less than 500 billion VND:

(i) Meeting the conditions and standards specified in points a(i), a(ii), a(iii), a(iv) and a(v) of this clause;

(ii) Having at least two years of experience as a manager or operator of a financial institution or at least three years of experience as a manager of a business operating in the finance, banking, accounting, or auditing industry, or at least four years of direct work experience in a department specializing in finance, banking, accounting, or auditing;

(iii) Having an associate degree in one of the fields of finance, banking, accounting, auditing, business administration, law or having a bachelor's degree or higher;

c) For people's credit cooperatives with total assets of 500 billion VND or more:

(i) Meeting the conditions and standards specified in points a(i), a(ii), a(iii), a(iv) and a(v) of this clause;

(ii) Having at least three years of experience as a manager or operator of a financial institution or at least four years of experience as a manager of a business operating in the finance, banking, accounting, or auditing industry, or at least five years of direct work experience in a department specializing in finance, banking, accounting, or auditing;

(iii) Having a bachelor's degree or higher.

2. The Chairman of the Board of Management must meet the following conditions and standards, except in cases provided for in Clause 3 of this Article:

a) For people's credit cooperatives with total assets under 200 billion VND:

(i) Being an individual member of the people's credit cooperative;

(ii) Meeting the conditions and standards specified in points a(ii), a(iii), a(iv) and a(v) of Clause 1 of this Article;

(iii) Having at least two years as a manager or executive of a credit institution or having at least three years as a manager of a business operating in the financial, banking, accounting, or auditing sector, or having at least four years working directly in the finance, banking, accounting, or auditing operational departments.

(iv) Having an associate degree in one of the fields of finance, banking, accounting, auditing, business administration, law or having a bachelor's degree or higher.

b) For people's credit cooperatives with total assets from 200 billion VND to less than 500 billion VND:

(i) Satisfy the conditions and standards specified in points a(i) and a(ii) of this clause;

(ii) Having at least three years of experience as a manager or operator of a financial institution or at least four years of experience as a manager of a business operating in the finance, banking, accounting, or auditing industry, or at least five years of direct work experience in a department specializing in finance, banking, accounting, or auditing;

(iii) Have a bachelor's degree or higher;

c) For people's credit cooperatives with total assets of 500 billion VND or more:

(i) Satisfy the conditions and standards specified in points a(i) and a(ii) of this clause;

(ii) Having at least three years as a manager or executive of a credit institution or having at least five years as a manager of a business operating in the financial, banking, accounting, or auditing sector, or having at least five years working directly in the finance, banking, accounting, or auditing operational departments.

(iii) Having a bachelor's degree or higher.

3. The State Bank branch shall coordinate with the People's Committee of the commune where the people's credit fund is headquartered and the cooperative bank to designate personnel for the position of Chairman of the Board of Management of the people's credit fund according to the following regulations:

a) Situations for designation:

(i) The people's credit fund fails to elect a Chairman of the Board of Management within the time limit prescribed in Clause 2, Article 87 of the Law on Credit Institutions;

(ii) The people's credit fund is subject to special supervision;

(iii) Other situations as required by the State Bank branch when the people's credit fund poses a risk of causing instability in its operations;

b) Conditions and standards for designated personnel:

(i) Having good reputation and a strong sense of compliance with the law;

(ii) Holding a bachelor's degree or higher, or a certificate of secondary vocational education or higher for commune-level cadres;

(iii) Having held a management or executive position for at least one year in an entity within the banking, financial, accounting, or auditing sectors as stipulated in the Charter or equivalent document of that entity, or having at least three years working directly in the finance, banking, accounting, or auditing operational departments, or being a commune-level cadre.

Section 4

SUPERVISORY BOARD

Article 20. Audit Committee

1. The number of members of the Audit Committee shall be implemented as follows:

a) The Supervisory Board of a people's credit fund with total assets under fifty billion dong must have at least one member. In cases where the Supervisory Board has only one member, that member shall concurrently serve as the Head of the Supervisory Board.

b) The Audit Committee of a people's credit fund with total assets from VND 50 billion to less than VND 200 billion must have at least two members;

c) The Audit Committee of a people's credit fund with total assets of VND 200 billion or more must have at least three members.

2. The Head of the Supervisory Board shall not hold office for more than two consecutive terms.

3. Members of the Audit Committee may directly perform internal audit tasks.

Article 21. Conditions and Standards for the Head of the Audit Committee and Members of the Audit Committee

1. Members of the Audit Committee must meet the following qualifications and conditions:

a) For people's credit cooperatives with total assets under 200 billion VND:

(i) Meet the conditions and standards specified in points a(i), a(ii), a(iii), a(iv), and a(v) of Clause 1 of this Circular;

(ii) Have at least one year of direct work experience in the financial, banking, accounting, or auditing departments;

(iii) Having a degree of at least intermediate level in one of the fields of finance, banking, accounting, auditing, business administration, or law, and holding a certificate (or a certificate of completion) proving training in the operations of a people's credit fund according to the training program of the State Bank, or having an associate degree in one of the fields of finance, banking, accounting, auditing, business administration, or law, or having a degree of at least bachelor's level.

b) For people's credit cooperatives with total assets from 200 billion VND to less than 500 billion VND:

(i) Meet the conditions and standards specified in points a(i), a(ii), a(iii), a(iv), and a(v) of Clause 1 of this Circular;

(ii) Have at least two years of direct work experience in the financial, banking, accounting, or auditing departments;

(iii) Having an associate degree in one of the fields of finance, banking, accounting, auditing, business administration, law or having a bachelor's degree or higher;

c) For people's credit cooperatives with total assets of 500 billion VND or more:

(i) Meet the conditions and standards specified in points a(i), a(ii), a(iii), a(iv), and a(v) of Clause 1 of this Circular;

(ii) Have at least three years of direct work experience in the financial, banking, accounting, or auditing departments;

(iii) Having a bachelor's degree or higher.

2. The Head of the Audit Committee must meet the following qualifications and conditions:

a) For people's credit cooperatives with total assets under 200 billion VND:

(i) Being an individual member of the people's credit cooperative;

(ii) Meet the conditions and standards specified in points a(ii), a(iii), a(iv), and a(v) of Clause 1 of this Circular;

(iii) Have at least two years of direct work experience in the field of finance, banking, accounting, or auditing;

(iv) Having an associate degree in one of the fields of finance, banking, accounting, auditing, business administration, law or having a bachelor's degree or higher.

b) For people's credit funds with total assets of VND 200 billion or more:

(i) Satisfy the conditions and standards specified in points a(i) and a(ii) of this clause;

(ii) Having at least three years working directly in the financial, banking, accounting, or auditing sector.

(iii) Having a bachelor's degree or higher.

Section 5

CONDITIONS AND STANDARDS FOR DIRECTORS, DEPUTY DIRECTORS,

CHIEF ACCOUNTANTS, BRANCH MANAGERS

Article 22. Conditions and standards for the Director

1. For people's credit funds with total assets under 200 billion VND, except in cases provided for in Clause 4 of this Article:

a) In the case of appointing a member of the Board of Management as the Director:

(i) Being an individual member of the people's credit cooperative;

(ii) Having a college degree in one of the fields of finance, banking, accounting, auditing, business administration, or law, or having a bachelor’s degree or higher;

b) In the case where the Director is a hired individual:

(i) Meeting the conditions and standards stipulated at points a(iii), a(iv), and a(v) of Clause 1 of Article 19 of this Circular;

(ii) Having a bachelor’s degree or higher;

(iii) Registering permanent residence or temporary residence in the province or city where the people's credit fund has its main office during the term of office;

(iv) Having at least one year as a manager or executive of a credit institution or having at least two years as a manager of a business operating in the financial, banking, accounting, or auditing sector, or having at least three years working directly in the finance, banking, accounting, or auditing operational departments.

2. For people's credit funds with total assets from 200 billion VND to less than 500 billion VND, except in cases provided for in Clause 4 of this Article:

a) In the case of appointing a member of the Board of Management as the Director:

(i) Being an individual member of the people's credit cooperative;

(ii) Having a bachelor’s degree or higher;

b) In the case where the Director is a hired individual:

(i) Meeting the conditions and standards stipulated at points b(i), b(ii), and b(iii) of Clause 1 of this Article;

(ii) Having at least two years as a manager or executive of a credit institution or having at least three years as a manager of a business operating in the financial, banking, accounting, or auditing sector, or having at least four years working directly in the finance, banking, accounting, or auditing operational departments.

3. For people's credit funds with total assets of 500 billion VND or more, except in cases provided for in Clause 4 of this Article:

a) In the case of appointing a member of the Board of Management as Director: Meeting the conditions and standards prescribed in point a(i) and point a(ii) of Clause 2 of this Article.

b) In the case where the Director is a hired individual:

(i) Meeting the conditions and standards stipulated at points b(i), b(ii), and b(iii) of Clause 1 of this Article;

(ii) Having at least three years as a manager or executive of a credit institution or having at least four years as a manager of a business operating in the financial, banking, accounting, or auditing sector, or having at least five years working directly in the finance, banking, accounting, or auditing operational departments.

4. The State Bank branch shall coordinate with the People's Committee of the commune where the people's credit fund is headquartered and the cooperative bank to designate personnel for the position of Director of the people's credit fund according to the following regulations:

a) Situations for designation:

(i) The people's credit fund does not have a Director within the time limit specified in Clause 3 of Article 95 of the Law on Credit Institutions;

(ii) The people's credit fund is placed under special supervision.

(iii) Other situations as required by the State Bank branch when the people's credit fund poses a risk of causing instability in its operations;

b) Conditions and standards for designated personnel:

(i) Having good reputation and a strong sense of compliance with the law;

(ii) Holding a bachelor's degree or higher, or a certificate of secondary vocational education or higher for commune-level cadres;

(iii) Having held a management or executive position for at least one year in an entity within the banking, financial, accounting, or auditing sectors as stipulated in the Charter or equivalent document of that entity, or having at least three years working directly in the finance, banking, accounting, or auditing operational departments, or being a commune-level cadre.

Article 23. Conditions and standards for Deputy Directors, Chief Accountants, and Branch Managers

Deputy Directors, Chief Accountants, and Branch Managers must meet the following conditions and standards:

1. For people's credit funds with total assets under 200 billion VND:

a) Not falling into the cases provided for in Articles 42 and 43 of the Law on Credit Institutions;

b) Registering permanent residence or temporary residence in the province or city where the people's credit fund has its main office during the term of office;

c) The Chief Accountant must meet the conditions and standards prescribed by the law on accounting;

d) Fulfilling one of the following conditions: Having a degree of at least intermediate level in one of the fields of finance, banking, business administration, law, auditing, or another field within the specialized area they will be responsible for, or having an associate degree in another field and at least three years working directly in the finance, banking, or specialized operational departments they will be responsible for.

2. For people's credit funds with total assets from 200 billion VND to less than 500 billion VND:

a) Meeting the conditions and standards stipulated at points a, b, and c of Clause 1 of this Article;

b) Fulfilling one of the following conditions: Having an associate degree or higher in one of the fields of finance, banking, business administration, law, auditing, or another field within the specialized area they will be responsible for, or having a bachelor's degree or higher in another field and at least three years working directly in the finance, banking, or specialized operational departments they will be responsible for.

3. For people's credit funds with total assets of 500 billion VND or more:

a) Meeting the conditions and standards stipulated at points a, b, and c of Clause 1 of this Article;

b) Fulfilling one of the following conditions: Having a bachelor's degree or higher in one of the fields of finance, banking, business administration, law, auditing, or another field within the specialized area they will be responsible for, or having a bachelor's degree or higher in another field and at least four years working directly in the finance, banking, or specialized operational departments they will be responsible for.

Chapter 6

ACTIVITIES OF THE PEOPLE'S CREDIT FUND

Article 24. Capital Mobilization

1. Receive demand deposits, term deposits, and savings deposits from members, organizations, and individuals in Vietnamese dong.

2. The total amount of deposits received from members of rural credit funds operating within one commune shall be at least 50% of the total amount of deposits received by the rural credit fund.

The total amount of deposits received from members of rural credit funds operating across multiple communes shall be at least 60% of the total amount of deposits received by the rural credit fund.

The total amount of deposits received from members of rural credit funds with total assets of 500 billion Vietnamese dong or more shall be at least 70% of the total amount of deposits received by the rural credit fund.

3. Borrow from cooperative banks.

4. Borrow from credit institutions and foreign bank branches. Rural credit funds shall not lend to or deposit money with each other.

5. Receive entrusted capital for lending from organizations and individuals within the country.

Article 25. Blank Savings Books

1. A people's credit fund may only use white savings books according to the model issued and provided by the cooperative bank to accept savings deposits from customers as stipulated in Clause 1 of Article 24 of this Circular.

2. Rural credit funds shall have the responsibility to:

a) Establish internal regulations on the management and use of white savings books and submit them to the State Bank branch within ten days from the date of issuance or amendment. Internal regulations on the management and use of white savings books must include the following contents at a minimum:

(i) Specific procedures for purchasing, managing, and using white savings books, ensuring strict control over the quantity and quality of white savings books during storage, receipt and delivery, handover, preservation, transportation, management, and use; monthly inventory and reconciliation; handling lost or damaged white savings books. White savings books must be managed strictly like valuable documents and can only be stored at the headquarters of the people's credit fund.

(ii) Responsibilities of the Board of Management, Chairman of the Board of Management, Director (Deputy Director), Supervisory Board, and related individuals or departments in the management and use of white savings books; inspection and reconciliation of white savings books; and handling lost or damaged white savings books.

(iii) The process for handling the responsibility of individuals and relevant departments in managing and using white savings books and losing white savings books. Immediately upon receiving white savings books from the cooperative bank, the credit union fund must affix a matching stamp between the customer's card and the retained card on all white savings books or on the white savings book section;

b) Report to the State Bank branch and the cooperative bank immediately upon discovering the loss of white savings books to take appropriate measures, and simultaneously post a list of lost white savings books specifying the serial number of the book at the main office, transaction room, and People's Committee office within the operating area of the credit union fund upon discovery of the loss of white savings books;

c) Publicize the model of white savings books issued by the cooperative bank at the main office, transaction room, and through village, ward media; facilitate customers who have deposited savings with the credit union fund to compare with the model of white savings books and implement the exchange of white savings books according to the new model when requested by the customer;

đ) Before the 10th day of each month or upon request, compile and report the situation of using white savings books of the previous month according to the form prescribed in Appendix No. 05 issued together with this Circular and send it to the State Bank branch;

Article 26. Lending Activities

1. The lending activities of the credit union fund mainly aim to assist members to effectively carry out production and business activities and improve the living standards of credit union fund members;

2. The credit union fund lends in Vietnamese dong in accordance with the State Bank's regulations on lending by credit institutions to customers and is responsible for its decisions. The credit union fund shall not lend secured by the Share Capital Book of members;

3. The credit union fund lends to member legal entities, corporate customers, and non-member individuals who have deposits at the credit union fund based on securing by the deposit balance at that credit union fund and the loan term shall not exceed the remaining term of the deposit contract or savings book at that credit union fund;

4. The credit union fund lends to poor household members registered as permanent residents within the operating area of the credit union fund in cases where the poor household is not a member of the credit union fund. In cases where multiple poor household members borrow capital, the poor household members jointly sign or authorize one poor household member to represent them in signing the loan agreement with the credit union fund. The poor household must be approved by the County People's Committee. The procedures, documents for lending to poor household members are carried out in accordance with the loan regulations applicable to members;

5. The People's Credit Fund shall not lend to customers for purchasing or investing in securities.

6. The People's Credit Fund jointly lends with cooperative banks to People's Credit Fund members according to the provisions of the Law on Credit Institutions.

Article 27. Internal Regulations on Lending and Loan Management

The credit union fund must issue internal regulations on lending and managing loans in accordance with the State Bank's regulations on lending by credit institutions and foreign bank branches to customers, including individual members, household members, legal entities; non-member customers as stipulated in Clause 3 and Clause 4 of Article 26 of this Circular;

Article 28. Other Activities

1. Implementing activities as prescribed in Clause 3 of Article 126 and Points b, d, đ, e, and h of Clause 4 of Article 126 of the Law on Credit Institutions.

2. Depositing money at cooperative banks to regulate capital.

3. Insurance agency as follows:

a) When the license issued by the State Bank to the credit union fund includes insurance agency operations, the credit union fund may conduct insurance agency operations for various types of insurance as prescribed by the Insurance Business Law;

b) When carrying out insurance agency activities, the People's Credit Fund must comply with the laws on insurance business and other relevant laws.

Section 7

RIGHTS AND OBLIGATIONS OF THE CREDIT UNION FUND

Article 29. Rights of the People's Credit Fund

1. To receive support from cooperative banks in developing products and services; vocational training.

2. To receive support from cooperative banks in banking activities as prescribed by law.

3. To receive support from cooperative banks in conducting internal audits as prescribed by the State Bank regarding cooperative banks.

4. To accept financial assistance from the State, domestic and foreign organizations, and individuals.

5. To request borrowers to provide documents on their production, business, service, and living conditions related to the loan and other information as prescribed by law.

6. To refuse requests from organizations and individuals that contravene the law.

7. To exercise other rights as prescribed by law.

Article 30. Obligations of People's Credit Funds

1. Conduct business activities in accordance with the content specified in the License already issued.

2. Contribute capital to cooperative banks in accordance with the provisions of the law.

3. Deposit money at cooperative banks to regulate capital in accordance with the regulations of the State Bank on cooperative banks.

4. Participate in the Safety Assurance Fund for People's Credit Funds in accordance with the provisions of the law.

5. Provide reports to the cooperative bank for the purpose of capital adjustment, inspection, supervision, internal audit, management of the Guarantee Fund for the safety of credit union funds in accordance with internal regulations issued by the cooperative bank in accordance with the State Bank's regulations on cooperative banks;

6. Be subject to inspection, supervision, and internal audit by cooperative banks in accordance with the regulations of the State Bank on cooperative banks.

7. The credit union fund must post and retain information specified in Clause 1 of Article 49 of the Law on Credit Institutions at the main office of the credit union fund and submit a written report to the State Bank branch within seven working days from the date the credit union fund receives the provided information. Annually, the credit union fund publicly announces the information specified in Points a, b, and d of Clause 1 of Article 49 of the Law on Credit Institutions to the Member General Meeting of the credit union fund;

Chapter III

TRANSITIONAL PROVISIONS

Article 31. Transitional Provisions for Management Personnel, Operating Personnel, and Supervisory Board Members of People's Credit Funds

The Chairman and members of the Management Board, Head and members of the Supervisory Board, Director, Deputy Director, Chief Accountant, Branch Director of the credit union fund appointed or assigned before this Circular takes effect but do not meet the provisions of Articles 19, 21, 22, and 23 of this Circular shall continue to hold their positions until the end of their term or until the end of the appointment period;

a) Having at least three hundred members;

b) The actual value of the charter capital being not less than the statutory capital requirement;

c) Having an organizational structure, management machinery, operational machinery, internal audit system, internal control system, managers, operators, board of supervisors meeting the standards and conditions stipulated in the Law on Credit Organizations and guidelines of the State Bank;

d) Not falling under the category of credit cooperatives subject to early intervention or special supervision according to the law;

đ) The total amount of deposits received from members of the credit cooperative being not less than sixty percent of the total deposit amount of the credit cooperative;

2. The operating area of the credit union fund subject to early intervention, the credit union fund subject to special supervision shall be implemented in accordance with the content of the remediation plan, recovery plan, merger plan, consolidation plan, transfer of the entire share capital approved;

3. The credit union fund operating in specific industries, the credit union fund operating in specific enterprises as prescribed in Circular No. 06/2007/TT-NHNN dated November 6, 2007, of the Governor of the State Bank amending and supplementing Circular No. 08/2005/TT-NHNN dated December 30, 2005, of the State Bank guiding the implementation of Decree No. 48/2001/NĐ-CP dated August 13, 2001, on the organization and operation of credit union funds and Decree No. 69/2005/NĐ-CP dated May 26, 2005, of the Government amending and supplementing some articles of Decree No. 48/2001/NĐ-CP dated August 13, 2001, of the Government on the organization and operation of credit union funds shall continue to operate in the area already approved by the State Bank branch;

4. The credit union fund operating in non-contiguous communes from the commune where the main office is located, which had state share capital prior to the effective date of this Circular, shall comply with the following provisions:

a) Credit cooperatives shall maintain their operating area as approved by the State Bank branch until all state capital has been withdrawn. During this period, credit cooperatives shall not admit new members in villages that are not contiguous to the village where their main office is located.

b) After fully withdrawing state-owned capital, People's Credit Funds must develop a plan to cease operations in non-adjacent villages in accordance with the provisions of Clause 7 of this Article;

a) Within a maximum period of 60 days from July 1, 2024, or from the date it is determined that they do not meet the conditions for operating in multiple contiguous villages, credit cooperatives must submit directly at the One-Stop Service Center or send via postal service to the State Bank branch a resolution plan, which must include at least the following contents:

(i) Current status of cross-village operations;

(ii) The level of compliance with each condition for operating in multiple contiguous villages as prescribed in Clause 1 of this Article;

(iii) A quarterly plan and measures to address the situation, along with a commitment to ensure compliance within a maximum period of 12 months from July 1, 2024 (for cases not meeting the conditions before July 1, 2024) or from the date it is determined that they do not meet the conditions for operating in multiple contiguous villages as prescribed in Clause 1 of this Article;

b) Within a maximum period of 20 days from the date of receipt of the resolution plan submitted by the credit cooperative as specified in point a of this clause, the State Bank branch shall issue a written request for the credit cooperative to amend and supplement the resolution plan if it does not meet the requirements. In case the State Bank branch requests amendments and supplements, within a maximum period of 30 days from the date the State Bank branch issues the written request for amendments and supplements, the credit cooperative must complete and submit directly or through postal service the amended and supplemented resolution plan to the State Bank branch. Within a maximum period of 20 days from the date of receipt of the resolution plan (including the amended and supplemented version), the State Bank branch shall issue a written approval of the resolution plan of the credit cooperative.

Quarterly, before the tenth day of the first month of the next quarter, the credit cooperative must submit a report on the progress of implementing the resolution plan approved by the State Bank branch, either directly or through postal service to the State Bank branch.

a) Within a maximum period of 60 days after the maximum resolution period specified in point a(iii) of Article 5 of this Law, the credit cooperative must submit directly at the One-Stop Service Center or send via postal service to the State Bank branch a resolution plan, which must include at least the following contents:

(i) Current status of cross-village operations;

(ii) The level of compliance with each condition for operating in multiple contiguous villages as prescribed in Clause 1 of this Article;

(iii) A quarterly plan and measures to address the situation, along with a commitment to ensure that the credit cooperative ceases operations in contiguous villages and adjusts its operations back to the village where its main office is located within a maximum period of 24 months from the end of the resolution plan specified in point a(iii) of Article 5 of this Law;

b) Within a maximum period of 20 days from the date of receipt of the resolution plan submitted by the credit cooperative as specified in point a of this clause, the State Bank branch shall issue a written request for the credit cooperative to amend and supplement the resolution plan if it does not meet the requirements. In case the State Bank branch requests amendments and supplements, within a maximum period of 30 days from the date the State Bank branch issues the written request for amendments and supplements, the credit cooperative must complete and submit directly or through postal service the amended and supplemented resolution plan to the State Bank branch. Within a maximum period of 20 days from the date of receipt of the resolution plan (including the amended and supplemented version), the State Bank branch shall issue a written approval of the resolution plan of the credit cooperative.

Quarterly, before the tenth day of the first month of the next quarter, the credit cooperative must submit a report on the progress of implementing the resolution plan approved by the State Bank branch, either directly or through postal service to the State Bank branch;

c) During the implementation of the handling plan, the people's credit fund shall not admit new members or provide new loans in the commune that must cease operations.

a) Within a maximum period of 60 days from the date the administrative boundary adjustment document issued by the competent authority takes effect or 60 days from the date all state capital has been withdrawn from the credit cooperative, the credit cooperative must submit directly at the One-Stop Service Center or send via postal service to the State Bank branch a resolution plan, which must include at least the following contents:

(i) The current situation regarding the operation across communes of the people's credit fund;

(ii) Plan and measures for handling on a quarterly basis, including restructuring through division or separation in accordance with the provisions of the law and commitments to ensure that within a maximum period of thirty-six months from the date the document adjusting administrative boundaries issued by the competent state agency takes effect or from the date when the State-owned capital at the credit cooperative ceases operations in non-contiguous communes, communes outside the scope of a province or centrally-run city;

b) Within a maximum period of 20 days from the date of receipt of the resolution plan submitted by the credit cooperative as specified in point a of this clause, the State Bank branch shall issue a written request for the credit cooperative to amend and supplement the resolution plan if it does not meet the requirements. In case the State Bank branch requests amendments and supplements, within a maximum period of 30 days from the date the State Bank branch issues the written request for amendments and supplements, the credit cooperative must complete and submit directly or through postal service the amended and supplemented resolution plan to the State Bank branch. Within a maximum period of 20 days from the date of receipt of the resolution plan (including the amended and supplemented version), the State Bank branch shall issue a written approval of the resolution plan of the credit cooperative.

Quarterly, before the tenth day of the first month of the next quarter, the credit cooperative must submit a report on the progress of implementing the resolution plan approved by the State Bank branch, either directly or through postal service to the State Bank branch;

c) During the implementation of the handling plan, the people's credit fund shall not admit new members or provide new loans in the commune that must cease operations.

Within fifteen days from the date of receiving the request document from the credit cooperative, the State Bank branch shall issue a Decision to amend and supplement the Operating Permit concerning the operating area of the credit cooperative.

a) Downgrade the classification level when conducting annual classification of people's credit funds;

b) Administrative penalty;

c) Apply credit growth restrictions;

d) Implement mandatory restructuring;

đ) Revoke the Operating Permit.

Article 33. Transitional Provisions for Loan Activities to Purchase and Invest in Securities; Savings Books

1. For loan contracts signed before the effective date of this Circular to purchase or invest in securities and in compliance with the legal regulations at the time of signing, the credit cooperative and the customer may continue to perform the agreements already signed until the end of the loan contract term.

2. Savings books issued by the credit cooperative to customers before January 1, 2020 may continue to be used until the maturity date of the savings deposit (except in cases where the maturity date of the savings deposit has been reached but the customer does not conduct transactions at the credit cooperative) or exchanged for new savings book models if requested by the customer. Upon reaching the maturity date of the savings deposit, if the customer wishes to continue depositing, the credit cooperative must recover the old savings book model and use the savings book model issued and provided by the cooperative bank. In cases where the maturity date of the savings deposit has been reached but the customer does not conduct transactions at the credit cooperative, the old savings book model may continue to be used until the credit cooperative recovers the old savings book model issued to the customer.

Chapter IV

IMPLEMENTING PROVISIONS

Article 34. Responsibilities of Relevant Units

1. The Banking Inspection and Supervision Authority:

a) Take the lead in coordinating with Departments and Bureaus under the State Bank to submit matters related to the organization and operation of credit cooperatives within the authority of the Governor of the State Bank to the Governor of the State Bank for consideration;

b) Receive reports from the State Bank branches of provinces and centrally-run cities as prescribed in Clause 2 of this Article;

2. State Bank branches of provinces and centrally-run cities:

a) Manage, inspect, supervise, examine, and handle violations by credit cooperatives within their jurisdiction in implementing the provisions of this Circular and relevant laws;

b) Direct and guide credit cooperatives in implementing transitional provisions and post-transitional handling as stipulated in Articles 31, 32, and 33 of this Circular. Quarterly, within the first fifteen days of the first month of each quarter, submit a report to the State Bank (Bank Inspection and Supervision Department) on the implementation of transitional provisions by credit cooperatives within their jurisdiction;

c) Consider suspending or temporarily suspending the exercise of rights and obligations of the Chairman and members of the Board of Management, Head and members of the Supervisory Board, General Director, Deputy General Director, Chief Accountant, Branch General Director of credit cooperatives who violate the provisions of Article 43 and Clause 10 of Article 48 of the Law on Credit Organizations or other relevant laws during the performance of assigned duties or failing to meet the standards and conditions stipulated in Articles 19, 21, 22, and 23 of this Circular; request the competent authority to remove, dismiss, elect, appoint, or designate a replacement if deemed necessary;

a) Circular No. 04/2015/TT-NHNN dated March 31, 2015 of the Governor of the State Bank of Vietnam on credit unions;

b) Circular No. 06/2017/TT-NHNN dated July 5, 2017 of the Governor of the State Bank amending and supplementing certain articles of Circular No. 03/2014/TT-NHNN dated January 23, 2014 of the Governor of the State Bank of Vietnam on the fund for ensuring the safety of the credit union system and Circular No. 04/2015/TT-NHNN dated March 31, 2015 of the Governor of the State Bank of Vietnam on credit unions;

Article 35. Effective Date

1. This Circular takes effect from July 1, 2024.

2. This Circular abolishes:

c) Article 2, Clause 1 of Article 6 of Circular No. 21/2019/TT-NHNN dated November 14, 2019 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of Circulars regulating cooperative banks, credit unions, and the fund for ensuring the safety of the credit union system;

b) Circular No. 06/2017/TT-NHNN dated July 5, 2017 of the Governor of the State Bank amending and supplementing certain articles of Circular No. 03/2014/TT-NHNN dated January 23, 2014 of the Governor of the State Bank on the safety guarantee fund for credit cooperatives and Circular No. 04/2015/TT-NHNN dated March 31, 2015 of the Governor of the State Bank on credit cooperatives;

c) Article 2, Clause 1 of Article 6 of Circular 21/2019/TT-NHNN dated November 14, 2019 of the Governor of the State Bank amending and supplementing certain articles of Circulars regulating cooperative banks, credit cooperatives, and the safety guarantee fund for credit cooperatives;

d) Circular No. 01/2023/TT-NHNN dated March 1, 2023, issued by the Governor of the State Bank of Vietnam amending and supplementing certain Articles of Circular No. 04/2015/TT-NHNN dated March 31, 2015, issued by the Governor of the State Bank of Vietnam on people's credit funds;

đ) Article 2 of Circular No. 24/2023/TT-NHNN dated December 29, 2023, issued by the Governor of the State Bank of Vietnam amending and supplementing certain Articles of related Circulars concerning the submission, presentation, and provision of information and documents on population when implementing administrative procedures in the field of establishment and operation of banks;

The Director of the Office, the Inspector General of Banking Supervision, Heads of Units under the State Bank of Vietnam, Governors of State Bank of Vietnam branches, cooperative banks, and people's credit funds are responsible for organizing the implementation of this Circular./.