Decision No. 457/2003/QD-NHNN On the issuance of the Technical Procedures for Inter-bank Electronic Payment Settlement

Pursuant to …;

regarding the issuance of the Electronic Payment Settlement Process

among banks

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law on Credit Organizations No. 02/1997/QH10 dated December 12, 1997;

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

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

Pursuant to Decision No. 44/2002/QĐ-TTg dated March 21, 2002 of the Prime Minister on the use of electronic vouchers as accounting vouchers for recording and payment of funds by service providers;

At the proposal of the Director of the Accounting and Finance Department.

Pursuant to …;

Article 1. This Decision promulgates the "Electronic Payment Settlement Process among Banks."

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette and shall replace Decision No. 212/2002/QĐ-NHNN dated March 20, 2002 of the Governor of the State Bank of Vietnam on the issuance of the Electronic Payment Settlement Process among Banks.

Article 3. The Heads of the Office, Department of Accounting and Finance, Director of the Information Technology Department of the State Bank, Branch Directors, Heads of Units under the State Bank of Vietnam, Branch Governors of the State Bank in provinces and centrally-administered cities, General Managers (Directors) of service providers are responsible for implementing this Decision.

PROCEDURE

Electronic Payment Settlement Process among Banks
(Issued together with Decision No. 457/2003/QĐ-NHNN dated May 12, 2003 of the Governor of the State Bank of Vietnam)

Part 1:

GENERAL PROVISIONS

Article 1.This Electronic Payment Settlement Process among Banks stipulates procedures and sequences for processing, controlling, paying, and accounting for fund transfers between banks and other organizations providing payment services (hereinafter referred to as Banks) participating in electronic payment settlement organized and chaired by the State Bank.

Article 2. Control, reconciliation, and processing of offsetting in electronic payment settlement among banks.

Electronic payment settlement between banks is carried out according to the process: Payment orders and lists of payment orders sent to the settlement bank from member banks must be processed through the settlement bank to control, reconcile, determine the settlement results of each member bank, and account for the electronic payment settlement results before sending money to the receiving member bank.

1. The settlement bank (hereinafter referred to as the settlement bank) are responsible for:

- Receives and checks payment orders and lists of payment orders sent to the settlement bank from member banks.

- Prepares and sends "The Result of Electronic Payment Settlement Table" along with processed payment orders to member banks.

- Prepares and sends "Daily Summary of Electronic Payment Settlement" for settlement and reconciliation of daily electronic payment settlement volumes with member banks.

- Settles and accounts for the results of electronic payment settlement transactions between member banks on the day of transaction.

2. Member banks directly participating in electronic payment settlement (hereinafter referred to as member banks) shall perform:

- Prepares and sends "Payment Orders," "Lists of Payment Orders Sent to the Settlement Bank" as well as receiving payment orders and results of electronic payment settlement sent by the settlement bank for timely accounting of payment orders and results of electronic payment settlement.

- Prepares and sends "Confirmation of Payment Settlement Results" for each settlement session as well as at the end of the day within the prescribed time to serve reconciliation and settlement of daily electronic payment settlement transactions.

Article 3. Documents used in electronic payment settlement among banks.

1. Ledger entries used in accounting for electronic payment settlement among banks and payment orders (in paper form or as electronic vouchers) and the Result of Electronic Payment Settlement Table (Appendix Model No. 5). Original documents used for settlement are current payment documents.

2. Paper payment documents must be prepared according to the prescribed model and comply with the current regulations of the Governor of the State Bank of Vietnam on Accounting Vouchers for Banks and Credit Organizations.

3. Electronic payment orders must meet the data standards set by the State Bank and must comply with the current regulations of the Governor of the State Bank of Vietnam on the establishment, use, control, processing, preservation, and storage of electronic vouchers of banks and credit organizations.

Article 4.Debit Transfer in Electronic Payment Settlement.

1. All debit transfers in electronic payment settlement must have prior authorization: Member banks participating in electronic payment settlement among banks must sign debit transfer contracts with each other and notify the settlement bank in writing before implementation. A member bank sending a payment order can only credit the account of the beneficiary after the receiving bank has debited the account of the payer.

2. Member banks that have signed debit transfer contracts when participating in electronic payment settlement must fully bear responsibility for executing debit transfers in the signed contracts.

Article 5. Principles of Payment in Electronic Payment Settlement:

1. The settlement bank processes offsetting of payment orders that have been controlled and reconciled correctly with the payment orders listed on the list of payment orders sent to the settlement bank (Appendix Model No. 4) and settles the difference amount payable - the result of electronic payment settlement is the payable amount of the member bank within the actual payment capacity of the member bank at the settlement bank.

During the offsetting process of the settlement session and during the settlement of daily electronic payment settlement, the settlement bank will lock the balance of the deposit accounts of member banks to ensure the accurate payment capacity of member banks.

2. In case the deposit account of a member bank lacks the payment capacity compared to the settlement result when processing offsetting in the electronic payment settlement session and during the settlement of daily electronic payment settlement, the following actions shall be taken:

a/ If at the time of executing the electronic payment settlement session, a Member Bank does not have the ability to pay for its obligations arising from processing the settlement results, the Host Bank shall handle as follows:

- In accordance with the principle of only processing payments within the actual payment capacity, the Host Bank will not process the settlement for some Payment Orders. (remove) some Payment Orders (remove Payment Orders according to the priority order from low to high as prescribed in Article 7 of this Procedure).

- The Payment Orders that are not processed during the electronic payment settlement session will be retained by the Host Bank for processing in the next settlement session on the transaction day, while simultaneously notifying the Member Bank lacking the payment capacity of the unprocessed Payment Orders. - Column (7): Land area in land allocation decisions, lease decisions, or documents of the competent authority or actual land area managed and used (applicable to assets that are buildings and land)., at the same time, notify the Member Bank lacking the payment capacity of the unprocessed Payment Orders.

b/ If, by the end of the settlement of the electronic payment settlement on the transaction day, the Member Bank still lacks the payment capacity to settle the unprocessed Payment Orders, the Host Bank will proceed to cancel these Payment Orders. Additionally, the Host Bank will proceed to handle according to Clause 3 of Article 12 of the Inter-Bank Electronic Payment Settlement Regulation issued together with Decision No. 1557/2001/QĐ-NHNN dated December 14, 2001 of the Governor of the State Bank of Vietnam (hereinafter referred to as the Inter-Bank Electronic Payment Settlement Regulation).

Article 6. Transaction time in electronic payment settlement.

1. The Host Bank bases on the situation and actual needs in the area to determine the transaction time of each electronic payment settlement session and the number of sessions in a day after reaching consensus with the Member Banks in the area. However, it must ensure final settlement on the transaction day and the data between the Member Banks must match accurately with the Host Bank.

2. For funds transfer orders for transferring money to other banks outside the province or city, the Member Banks participating in the electronic payment settlement must send the Payment Orders to the Host Bank before the deadline for receiving Payment Orders applicable in electronic fund transfers by the State Bank. Payment Orders received after this time will not be accepted for processing in the settlement session on the same day.

3. The Member Banks participating in the electronic payment settlement must comply strictly with the deadlines applicable in electronic payment settlement above to ensure smooth, accurate, timely, and safe processing and reconciliation in electronic payment settlement.

Article 7. Priority order for processing Payment Orders applied in the electronic payment settlement session.

The Member Banks shall establish the priority order for processing Payment Orders sent for electronic payment settlement. In case the Member Banks do not establish the priority order for the Payment Orders sent for electronic payment settlement, the priority order for processing the Payment Orders will be arranged according to the time of issuance of the Payment Orders: The Payment Order issued earlier will be prioritized for payment, while the Payment Order issued later will be paid later.

Part II:

SPECIFIC PROVISIONS

I- PROCEDURE FOR APPLYING FOR PARTICIPATION IN ELECTRONIC PAYMENT SETTLEMENT

Article 8. Procedure for applying for participation and review of Member Banks participating in electronic payment settlement.

1. Member Banks meeting the conditions to participate in electronic payment settlement (as stipulated in Article 2 of the Electronic Payment Settlement Regulation) must submit to the Host Bank the following documents:

- Application for participation in electronic payment settlement (according to Appendix No. 13).

- Commitment letter to comply with relevant regulations upon becoming a Member Bank participating in inter-bank electronic payment settlement.

2. After being officially recognized in writing by the Host Bank as a Member Bank participating in inter-bank electronic payment settlement, the Director of the Member Bank must issue a letter introducing the staff (Director or authorized representative, Head of Accounting Department or authorized representative, settlement clerk) involved in the technical and operational procedures of electronic payment settlement, clearly defining the tasks and responsibilities of each introduced staff member to perform tasks in electronic payment settlement. This introduction letter must be directly submitted to the Host Bank.

- Each staff member of the Member Bank introduced to participate in the technical and operational procedures of inter-bank electronic payment settlement, depending on their functions and responsibilities, will be assigned an electronic signature and security key (as prescribed in Article 9 of the Inter-Bank Electronic Payment Settlement Regulation).

3. The Host Bank has the responsibility to notify the list of newly admitted Member Banks participating in electronic payment settlement to the relevant Member Banks seven days in advance to prepare for electronic payment settlement transactions.

4. The Member Banks authorized (as stipulated in Clause 2 of Article 2 of the Inter-Bank Electronic Payment Settlement Regulation) must have the responsibility to notify the list of authorized Member Banks to the Host Bank and other Member Banks to facilitate electronic payment settlement transactions.

II- PROCEDURES FOR PROCESSING AND RECORDING OPERATIONS OF ELECTRONIC PAYMENT SETTLEMENT AT MEMBER BANKS AND THE HOST BANK OF ELECTRONIC PAYMENT SETTLEMENT:

A. AT THE SENDING MEMBER BANK

Article 9. Responsibilities for processing Payment Orders sent for electronic payment settlement.

1. Member Banks participating in electronic payment settlement must be responsible for processing all related documents for electronic payment settlement:

Upon receipt of payment documents from customers, the transaction accountant must be responsible for controlling the legality and validity of the documents. Specifically, for electronic documents (when there are no regulations on storing electronic documents) the Member Bank must print (convert) the electronic document to paper, sign, stamp according to the regulations to serve the control, preservation, and storage of the documents.

2. The settlement member accountant shall be responsible for converting all payment documents (including both paper documents and electronic documents) related to electronic settlement transactions into electronic payment orders (in accordance with Appendix No. 1). (including paper vouchers and electronic vouchers) Payment orders must be created separately for each payment document. (in accordance with Appendix No. 1 model). The payment order shall be issued separately for each payment voucher.

3. Based on the payment orders that have been transmitted to the lead bank during the electronic settlement session and the payment orders from the previous settlement session that were not processed and stored at the lead bank on the transaction day (if any), the settlement accountant shall prepare a "List of Payment Orders Transmitted to the Lead Bank" (Appendix No. 4). At the designated time for the electronic settlement session, the member banks shall transmit the List of Payment Orders Transmitted to the Lead Bank to the lead bank for processing the electronic settlement. The List of Payment Orders Transmitted to the Lead Bank must contain the digital signatures of those responsible for the accuracy of the data on the list (Director or authorized representative, Head of Accounting Department or authorized representative, and Settlement Accountant).

Article 10. Processing and recording of electronic settlement transactions.

1. When sending the Payment Order to the Lead Bank:

- For Credit Payment Orders, record:

Debit Account: Suitable account

Credit Account: Settlement of the Member Bank

- For the Debt Transfer Order, record:

- For Debit Payment Orders, record:

Debit Account: Settlement of the Member Bank

Credit Account: Other pending payments

- Upon receipt of the notification accepting the Debit Order from the receiving member bank, the sending member bank shall credit the account by preparing a transfer voucher (debiting Other Pending Payments account, crediting the appropriate customer account). The acceptance notification for the Debit Order shall be kept together with the Debit Order.

+ For the Debt Transfer Order, based on the returned Debt Transfer Order, record:

In case the sending member bank receives a rejection notification for the Payment Order and the returned Payment Order from the receiving member bank (to be processed in the next settlement session), the sending member bank must strictly control and if valid, record:

Credit Account: Settlement of the Member Bank

+ For Debit Orders, based on the returned Debit Order, record:

- For Debit Payment Orders, record:

Debit Account: Other Pending Payments

+ For Credit Orders, based on the returned Credit Order, record:

Credit Account: Suitable account (previously debited)

The sending member bank must notify the customer of the rejection of the Payment Order (specifying the reason).

- If the sending member bank fails to transmit Payment Orders and the List of Payment Orders Transmitted to the Lead Bank due to technical issues, transmission problems, or other objective reasons, the sending member bank shall take measures to quickly resolve the issue, simultaneously inform the lead bank and relevant member banks to temporarily stop transmitting Payment Orders to this member bank, and prepare a "Technical Incident Report in Electronic Settlement" (Appendix No. 11). Once communication is restored, the sending member bank must inform the lead bank and relevant member banks to resume normal settlement.

+ When the communication network stops for any reason, member banks that lose contact may directly hand over magnetic tapes, disks containing Payment Orders, Lists of Payment Orders Transmitted to the Lead Bank, and the Electronic Settlement Result List (Appendix No. 5) to the lead bank. When handing over magnetic tapes and disks containing Payment Orders and the List of Payment Orders Transmitted to the Lead Bank, member banks must print out the List of Payment Orders Transmitted to the Lead Bank on paper and submit it to the lead bank. The List of Payment Orders Transmitted to the Lead Bank must contain the seals and signatures of those responsible for the accuracy of the data on the magnetic tapes and disks (Director or authorized representative, Head of Accounting Department or authorized representative, and Settlement Accountant).

B. AT THE RECEIVING MEMBER BANK FOR PAYMENT ORDERS AND ELECTRONIC SETTLEMENT RESULT LIST SENT BY THE LEAD BANK

Article 11. Process and record Payment Orders and Electronic Settlement Results

1. Monitor the Payment Orders and settlement lists received from the Lead Bank for netting settlements:

a/ When member banks receive Payment Orders and the Electronic Settlement Result List (Appendix No. 5) from the lead bank, the controller of the member bank must use their own password and program to check and verify the digital signature and security key of the lead bank to confirm the correctness and accuracy of the Payment Orders and Settlement Result List, then transmit the electronic data of the Payment Orders and Settlement Result List through the computer network to the settlement accountant for further processing.

b/ The netting settlement accountant is responsible for carefully monitoring and reconciling the elements of the Payment Order and the Netting Settlement Result Table to determine:

b/ The settlement accountant is responsible for carefully checking and verifying the elements of the Payment Orders and Settlement Result List to determine:

+ Whether the Payment Orders and Settlement Result List sent by the lead bank to the member bank are correct?

+ Is there anything suspicious about the content?

+ Verify and reconcile the elements and total number of Payment Orders received with the elements and total number of Payment Orders listed in Part B of the settlement result table (order number, date of issuance, code, sending bank code, receiving bank code, voucher code, transaction type content, and amount). If there are discrepancies, errors, or mistakes, they must be handled according to Article 23 of this Procedure.

+ Recheck and reconcile the list of Payment Orders transferred to the Host Bank (data from the member bank) with the Payment Orders sent by the bank that have been processed for netting in Part A of the settlement result table, and with the Payment Orders not yet processed for netting carried over to the next session (if any in Part D of the settlement result table). If there are discrepancies, errors, or mistakes, immediately investigate the Host Bank and handle them according to Article 21 of this Procedure.

+ The member bank must recheck the results of electronic netting settlements.

- When there are no regulations on the preservation and storage of electronic vouchers, the netting accountant must print out the Payment Orders and the electronic settlement result table on paper (ensuring sufficient copies for accounting purposes, customer delivery, and storage), sign and stamp them according to the prescribed regulations to serve the purpose of control, preservation, and storage of vouchers.

- After completing the verification and reconciliation, if there are no errors, the netting accountant must transfer the electronic data of the Payment Orders through the computer network or deliver the printed Payment Orders to the relevant accounting department (transaction accounting) for further processing. At the same time, the netting accountant must immediately prepare and send an electronic confirmation of the netting settlement results for each session (according to Appendix No. 7) to the Host Bank. The electronic confirmation of the netting settlement results for each session and for the day of transactions must contain the signatures of those responsible for the accuracy of the netting settlement results (Director or authorized representative, Head of Accounting Department or authorized representative, and netting accountant).

c/ In the transaction accounting department: Must verify and check again before performing accounting entries and payments to customers. If any errors are found, they must be handled according to Article 23 of this Procedure.

2. Accounting Processing:

a/ Based on the electronic settlement result table sent by the Host Bank:

- If the difference in the netting settlement is payable:

- For Debit Payment Orders, record:

Credit Account: Deposits at the Host Bank

- If the difference in the electronic netting settlement is receivable:

Debit Account: Deposits at the Host Bank

Credit Account: Settlement of the Member Bank

b/ Based on the received Payment Orders that have been verified:

- For valid incoming Credit Orders:

- For Debit Payment Orders, record:

Credit Account: Appropriate

- For incoming Debit Orders:

+ If the incoming Debit Order has authorization, is valid, and there is sufficient money in the customer's account to cover it, the member bank receiving the order must proceed with the accounting entry:

Debit Account: Suitable account

Credit Account: Settlement of the Member Bank

Then immediately issue and send a notification accepting the Debit Order to the sending member bank (Appendix No. 10).

+ In the case where the incoming Debit Order has authorization but there is insufficient money in the customer's account to cover it, the following actions must be taken:

Immediately notify the customer to deposit funds into their account to execute the incoming Debit Order within the specified timeframe (maximum two working hours from receipt of the Debit Order). Within the acceptance period, if the customer deposits sufficient funds into their account to execute the Debit Order, the receiving member bank will process the accounting entry as described above.

If the acceptance period expires and the customer has not deposited sufficient funds into their account to execute the Debit Order, the receiving member bank must issue a notification rejecting the Debit Order. In this case, the accounting entry is as follows:

For the incoming Debit Order, record:

Debit Account: Receivables

Credit Account: Settlement of the Member Bank

Based on the notification rejecting the Debit Order, issue a Debit Order to return to the sending member bank (returning in the next netting session):

- For Debit Payment Orders, record:

Credit Account: Receivables

The receiving member bank must maintain a record of unprocessed Debit Orders to provide data for reporting.

3. For rejected Payment Orders, the receiving member bank must return them to the sending member bank before the time of finalizing the electronic netting settlement. If the Payment Order is rejected after the time of finalizing the electronic netting settlement, the receiving member bank must return it to the sending member bank during the first netting session of the next trading day.

C. PROCEDURE FOR PROCESSING AND ACCOUNTING OF ELECTRONIC NETTING TRANSACTIONS AT THE HOST BANK

Article 12. Receive and control Payment Orders and lists of Payment Orders transferred to the Host Bank from member banks issuing orders.

1. The Host Bank responsible for electronic netting settlement must receive, control, and reconcile Payment Orders and lists of Payment Orders transferred to the Host Bank from member banks issuing orders. The entire reception, control, and reconciliation process is automatically processed by machine, with specific procedures as follows:

- Upon receipt of Payment Orders and lists of Payment Orders transferred to the Host Bank from issuing member banks, the Host Bank's controller must use their own secure code to verify and control the validity of the Payment Orders and lists. The received Payment Orders and lists must be controlled according to the following rules:

* For Payment Orders:

+ Electronic signature and encrypted code on the Payment Order

+ Name and address of the sending and receiving banks: name, code of the sending bank, receiving bank (verify whether the sending bank and receiving bank are indeed participating member banks)

+ Other elements on the Payment Order such as: order number, date of issuance, code, amount

+ For Debit Orders: Check the debt transfer contract between the member banks

* For lists of Payment Orders transferred to the Host Bank:

+ Electronic signature and encrypted code on the list

+ Name, address of the Sending Bank in the Statement: Name, bank code of the Sending Bank, Receiving Bank of the Payment Order.

+ Other elements of the Statement such as: Statement number, date of issuance of the Statement, total amount.

* Verify and reconcile between the elements of the Payment Order and the total number of Payment Orders with the elements and total number of Payment Orders listed on the Statement of Payment Orders transferred to the Lead Bank (Order number, date of issuance of the Order, Order code, sending bank code, receiving bank code, amount) that the Lead Bank has received to check for any errors, mistakes, excess or missing Payment Orders.

2. If any errors are found on the Payment Orders and the Statement of Payment Orders transferred to the Lead Bank, the Lead Bank must immediately investigate the Member Bank with errors and handle according to Article 22 of this Process.

Article 13. Prepare the "Electronic Settlement Result Statement" and verify the payment capacity of each Member Bank:

1. After the Payment Orders and the Statement of Payment Orders transferred to the Lead Bank from the Member Banks have been controlled and reconciled without any errors, the Lead Bank will:

Prepare the "Electronic Settlement Result Statement" (Appendix Model No. 5) to determine the receivables and payables of each Member Bank in the electronic settlement session.

2. Verify the payment capacity of each Member Bank by comparing the balance of the deposit account of the Member Bank at the Lead Bank (which has been locked by the Lead Bank at the time of processing the settlement) with the difference payable of the Member Bank in the settlement session. If the payment capacity of the Member Bank is insufficient to cover the payable difference, the Lead Bank will notify the Member Bank about the insufficiency and handle according to Clause 2 of Article 5 of this Process.

- The Lead Bank must recheck the accuracy of the settlement results in the session by preparing the "Summary Check Statement of Electronic Settlement Results" (Appendix Model No. 6). If correct, the Lead Bank will record the payable and receivable differences in the electronic settlement session. If incorrect, the Lead Bank will recalculate the settlement results.

3. Only after completing the settlement and recording of the electronic settlement results, the Lead Bank will transmit all Payment Orders and the Electronic Settlement Result Statement to the relevant Member Banks. At this point, the Lead Bank will also release the payment capacity of the Member Banks.

Article 14. Record the results of electronic settlement at the Lead Bank.

1. In case the Member Bank has to pay:

- Based on the Electronic Settlement Result Statement, the Lead Bank records:

Debit Account: Deposit of the Member Bank that has to pay

Credit Account: Settlement of the Lead Bank

2. In case the Member Bank receives payment:

- Based on the Electronic Settlement Result Statement, the Lead Bank records:

Debit Account:Settlement of the Lead Bank

Credit Account: Deposit of the Member Bank that receives payment.

3. At the Lead Bank, after recording the actual payable or receivable amounts of the Member Banks in the electronic settlement session according to the Electronic Settlement Result Statement, the settlement account of the Lead Bank must be zeroed out.

4. Handling errors and technical issues:

a- Discovering errors before electronic settlement processing: When controlling, if any errors are detected, the Lead Bank must immediately investigate the Member Bank that sent the order to determine the cause and take appropriate measures to ensure asset safety and system security. Errors will be handled as follows:

- If the cause is due to technical error, the Lead Bank may cancel the erroneous Payment Order or Statement and request the Member Bank that sent the order to resend the correct Payment Order or Statement to replace it.

- If counterfeit Payment Orders or Statements or suspicious information intrusions are discovered, a report must be made and necessary preventive measures taken immediately while notifying related units to cooperate in blocking.

b- Due to technical issues or transmission problems to the electronic settlement session on the day when a Member Bank fails to send Payment Orders and the Statement of Payment Orders transferred to the Lead Bank to the Lead Bank, the Lead Bank will only process settlement for Member Banks not affected by the issue. Payment Orders of unaffected Member Banks against the affected Member Bank will be retained by the Lead Bank for processing in the next settlement session (if the issue is resolved) or returned to the Member Banks.

c- In case after completing electronic settlement, the Lead Bank cannot transmit Payment Orders and the Settlement Result Statement of the settlement session to the relevant Member Banks due to technical or transmission issues, the following actions will be taken:

- The Lead Bank must quickly resolve the issue while informing all Member Banks and preparing a "Technical Issue Report in Electronic Settlement." Once the technical and transmission issues are resolved, the Lead Bank must immediately transmit Payment Orders along with the Settlement Result Statement to the relevant Member Banks.

- In case of any technical failure leading to loss of communication, Member Banks can directly go to the Lead Bank to hand over or receive tapes or disks containing Payment Orders and the Electronic Settlement Result Statement. When exchanging tapes or disks with Member Banks, the Lead Bank must print out the "Settlement Result Statement" on paper. The Statement must bear the signatures and stamps of those responsible for the accuracy of the data on the tapes or disks.

d- In case of technical accidents or transmission issues that prevent the leading bank from conducting the settlement session, the leading bank is permitted to extend the settlement session until the issue is resolved. However, the extension of the settlement session shall not carry over to the next trading day and must notify member banks about the extended settlement session. If it is determined that the technical accident or transmission issue cannot be resolved on the same day, the leading bank may apply the paper-based settlement method (in accordance with the current regulations of the State Bank of Vietnam).

III. INSPECTION AND VERIFICATION IN ELECTRONIC SETTLEMENT

Article 15. Prepare and send the daily electronic settlement summary table:

- The leading bank must complete the preparation of the daily electronic settlement summary table during the settlement session immediately preceding the final settlement session on the same day of transaction occurrence and transmit it to member banks on the same day of electronic settlement transaction occurrence (except in cases of force majeure due to technical transmission issues).

- The daily electronic settlement summary table of the leading bank is designed and prepared according to Appendix No. 8 and is preserved like other accounting reports of the bank.

- Member banks must fully and accurately perform all technical operations to ensure that the daily electronic settlement transaction volume verification is accurate and timely in accordance with the regulations.

Article 16. Daily electronic settlement transaction volume reconciliation.

1. In principle, the entire daily electronic settlement transaction volume generated between member banks on the trading day must be reconciled by the leading bank and must match precisely (both in total and in detail for each session) on the same day of transaction occurrence, except in cases of force majeure due to technical or transmission issues.

2. Reconciliation in electronic settlement is conducted separately for each day and is carried out before the final settlement session of the electronic settlement day. In cases where technical or transmission issues prevent reconciliation on the same day as prescribed, it is permissible to extend to the next trading day until the issue is resolved. However, even if reconciliation is conducted on the subsequent trading day, it must still reflect the day when the electronic settlement orders were issued.

3. Daily electronic settlement reconciliation:

Upon receiving the "Daily Electronic Settlement Summary Table" sent by the leading bank, member banks must reconcile all receivables, payables, and actual amounts receivable or payable of their own bank (with the figures recorded in the settlement account of the member bank and with the settlement results table of each session within the day). If the figures completely match, member banks must immediately prepare and send the electronic confirmation of daily electronic settlement (Appendix No. 7) to the leading bank to proceed with the final settlement session.

Article 17. Handling errors and technical issues during electronic settlement transaction volume reconciliation.

1. Errors and technical issues that may arise during electronic settlement transaction volume reconciliation:

+ Member banks have not confirmed daily electronic settlement.

+ Discrepancies in daily electronic settlement transaction volumes.

+ Technical transmission issues.

2. Measures to handle errors;

- When errors are discovered, member banks must promptly review the leading bank to determine the cause and take appropriate measures.

- All errors discovered through reconciliation must be handled immediately on the day of discovery by member banks in coordination with the leading bank and related member banks, except in cases of force majeure due to technical or transmission issues.

a. In case member banks have not transmitted the daily electronic settlement confirmation:

If at the time of the final settlement session of the daily electronic settlement, member banks have not transmitted the daily electronic settlement confirmation to the leading bank, member banks must immediately transmit according to point 3 of Article 16 of this Process (except in cases of technical or transmission issues).

b. In case discrepancies in daily electronic settlement transaction volumes are found between the daily electronic settlement summary table sent by the leading bank and the database of member banks, member banks must re-examine all settlement orders of the daily electronic settlement sessions to identify the cause, prepare a report, and handle:

- If excess or shortage in daily electronic settlement transaction volumes (excess or shortage in settlement orders) is identified, member banks must promptly review the leading bank to take appropriate measures and closely cooperate with the leading bank and relevant units to resolve the issue promptly, ensuring asset safety.

- If the error is due to technical fault, member banks are allowed to adjust according to the guidance of the leading bank.

3. In case of technical or transmission issues:

- Due to technical or transmission issues, if the leading bank has not received all daily electronic settlement confirmations from member banks at the time of final settlement, both member banks and the leading bank must prepare a "Technical Issue Report in Electronic Settlement." This report is attached to the daily electronic settlement summary table (printed on paper and signed, stamped by the unit) for tracking. On the next trading day, once the technical or transmission issues are resolved, member banks must immediately transmit the daily electronic settlement confirmation to the leading bank to proceed with the final settlement session.

- The confirmation of the daily electronic settlement result on the day affected by the issue must be confirmed and sent separately, not combined with the summary of electronic settlement transactions of subsequent trading days.

- In case of technical issues or transmission problems, member banks may directly visit the central bank to hand over magnetic tapes containing electronic confirmation of net settlement transactions for the day and receive the results of the net settlement transaction session for the day.

IV. SETTLEMENT OF NET SETTLEMENT TRANSACTIONS

Article 18. Settlement of net settlement transactions:

1. Settlement of net settlement transactions is the final processing of electronic net settlement transactions on the trading day after the central bank has accurately reconciled all daily net settlement transaction volumes with member banks. The central bank and participating member banks must resolve all discrepancies before settlement. If the central bank and member banks have not resolved discrepancies prior to the settlement time, the central bank may postpone the settlement time of the trading day to the next trading day and must notify member banks to take appropriate measures. On the following trading day, after correcting errors, the central bank will proceed with settlement but the data will still reflect the date of transaction occurrence.

2. When settling net settlement transactions for the day, the central bank will process tasks as prescribed in Article 11 of the Interbank Electronic Net Settlement Regulations.

3. From the time of stopping the issuance of payment orders until the settlement session, a member bank lacking liquidity must find ways to ensure sufficient funds before settlement (implementing measures to cover deficits in electronic net settlement as currently stipulated by the Governor of the State Bank) to settle these payment orders.

- If at the settlement time for net settlement transactions for the day, a member bank still lacks the ability to pay to settle payment orders, the central bank will handle according to point b, Clause 2, Article 5 of this procedure. The central bank must maintain a record of payment orders that cannot be settled due to insufficient liquidity for reconciliation and reference purposes when necessary.

- After correcting errors, the central bank will proceed with adjustment settlements for payment orders from member banks (including erroneous payment orders returned by member banks, payment orders canceled due to insufficient liquidity, rejected payment orders, and payment orders with sufficient balances for settlement...). The central bank will process similarly to previous net settlement sessions.

- Upon receiving the settlement result table of the net settlement session from the central bank, member banks must verify again. If the data matches completely, they must immediately issue and send an electronic confirmation of the settlement result to the central bank. At this point, member banks and the central bank are permitted to store data of the day's electronic net settlement transactions.

4. Handling technical issues and transmission errors:

- In cases where technical issues or transmission problems prevent the execution of the day's net settlement session, the central bank may extend the net settlement session to the next trading day, but the data will still reflect the date of transaction occurrence.

- Due to technical issues or transmission problems, if the central bank cannot transmit data back to member banks after completing the net settlement session, it may settle on the next trading day until the issue is resolved. However, even if settlement is conducted on the next trading day, the data must reflect the date of occurrence of the net settlement payment orders.

- Due to technical issues or transmission problems, if the central bank cannot send (transmit) the results of the day's net settlement session to member banks, member banks may directly visit the central bank to receive magnetic tapes or disks containing the results of the day's net settlement session.

V. CORRECTION OF ERRORS IN INTERBANK ELECTRONIC NET SETTLEMENTS

Article 19. Principles for correcting errors in interbank electronic net settlements.

1. Ensure consistency between member banks and the central bank, with accurate reflection of data in net settlements. Errors must be corrected where they occur. Arbitrary modification of data or correction of errors in electronic net settlements is strictly prohibited.

2. Immediate corrective measures must be taken upon discovery of errors to avoid delays in settlement operations. Errors discovered after electronic net settlement in the current session must be corrected in the next settlement session. Error corrections must follow the principles and methods of general accounting and specific electronic net settlement error correction as stipulated in Article 14 of the Electronic Net Settlement Regulations to ensure the safety of bank and customer assets.

Article 20. Cancellation of Payment Orders

The cancellation of payment orders must comply with the provisions of Article 15 of the Electronic Net Settlement Regulations, specifically as follows:

1. For the cancellation of payment orders from economic organizations or individuals:

- A debit order with authorization can only be canceled when the customer has returned the amount received to the member bank involved in the electronic net settlement transaction.

- A credit order can only be canceled when the member bank has not yet credited the account of the customer or has already credited the account but the customer has returned the amount.

2. Regarding the cancellation of Payment Orders by member banks themselves: Member banks participating in electronic settlement systems may only cancel payment orders in cases where there is an error in the Payment Order and must comply with the following principles:

- A Debit Transfer Order with a contract can only be cancelled when the member bank has not yet paid the customer according to the erroneous Order or has already paid but has recovered the amount.

- A Credit Transfer Order can only be cancelled when the member bank has not yet paid the customer according to the erroneous Order or has already paid but has recovered the amount.

3. For requests to cancel Credit Transfer Orders, upon receiving a request to cancel a Credit Transfer Order from a member bank, the main bank will immediately transmit this cancellation request to the receiving member bank to execute the cancellation of the erroneous Credit Transfer Order. For the cancellation of a Debit Transfer Order, it shall be processed like a regular Credit Transfer Order.

Article 21. Adjustment of errors at the sending member bank:

1. Correction of errors discovered before settlement processing:

a. For Payment Orders.

- Correction of errors prior to transmitting the Payment Order to the main bank.

+ If an error in the Payment Order is detected during its creation and the controller has not yet signed the electronic signature or has signed but not yet sent it to the main bank, the accountant may correct it.

+ In case the error in the Payment Order is discovered after it has been sent to the main bank but before settlement processing, the sending member bank must immediately send an electronic request to the main bank to return the erroneous Payment Order while sending the correct Payment Order to replace it. The sending member bank will process the returned erroneous Payment Order as follows: prepare a record of cancelling the erroneous Payment Order, clearly indicating the order number, time, and date of cancellation, and must have signatures of the Head of Accounting Department, Settlement Accountant, and relevant transaction accountant. The record is kept together with the cancelled Payment Order (printed out) in a separate file for preservation, then the sending member bank sends the correct Payment Order. The sending member bank may not reuse the number of the cancelled Payment Order.

- In case the main bank discovers an error in the Payment Order (due to technical issues) and requests its return, the sending member bank will handle it similarly to a Payment Order that was found to be erroneous after the controller has signed the electronic signature.

b. For the List of Payment Orders sent to the main bank.

- Correction of errors prior to transmitting the "List of Payment Orders sent to the main bank" to the main bank.

+ If an error in the List of Payment Orders sent to the main bank is detected during its creation and the controller has not yet signed the electronic signature or has signed but not yet sent it to the main bank, the accountant may correct it.

- In case the sending member bank discovers an error after sending the List to the main bank but before settlement processing, the sending member bank must immediately send an electronic request to the main bank to return the erroneous List while sending the correct List to replace it. The sending member bank will process the returned erroneous List as follows: prepare a record of cancelling the erroneous List, clearly indicating the list number, time, and date of cancellation, and must have signatures of the Director or authorized representative, Head of Accounting Department, and Settlement Accountant. The record is kept together with the cancelled List of Payment Orders sent to the main bank (printed out) in a separate file for preservation, then the sending member bank sends the correct List. The sending member bank may not reuse the number of the cancelled List.

- In case the main bank discovers errors on the List of Payment Orders sent to the main bank (due to technical issues) and requests its return, the sending member bank will handle it similarly to a List of Payment Orders that was found to be erroneous after the controller has signed the electronic signature.

2. Correction of errors discovered after settlement processing:

When discovering errors such as incorrect amounts (overpayment or underpayment), the sending member bank must immediately investigate or respond to the investigation (model appendix number 9) to the receiving member bank and the main bank to take timely measures. The sending member bank must prepare a record to determine the cause, clearly assign individual responsibility, and handle it:

a. In case of underpayment:

- Upon discovering underpayment, the member bank must prepare a Record of Underpaid Amount (model appendix number 12). Based on the Record of Underpaid Amount, the member bank prepares a supplementary Payment Order to make up for the underpaid amount and sends it to the main bank for settlement in the next session. The supplementary Payment Order must clearly indicate: "Supplementing the Debit (or Credit) Order number...date...month...year...amount transferred..." and must be accompanied by the prepared Record, then account for:

For a Credit Transfer Order that is underpaid:

For a Debit Transfer Order that is underpaid:

- The sending member bank must maintain a record of Payment Orders with errors for reporting purposes.

b. In case of overpayment:

* For a Credit Transfer Order that is overpaid:

Upon discovering overpayment, the sending member bank, based on the Record of Overpaid Amount, prepares a Request to Cancel the Credit Transfer Order (model appendix number 3) to cancel the overpaid amount and immediately sends it to the receiving member bank and the main bank, while preparing a transfer voucher for accounting:

Upon receiving the Credit Transfer Order from the receiving member bank returning the excess amount mentioned above (in the subsequent settlement session), the sending member bank accounts for:

In the case where a member bank receives an order and cannot accept the request to cancel the transfer order due to excess funds that cannot be recovered from the customer, the sending member bank must establish a committee in accordance with current regulations to determine the responsibility and extent of compensation for the individual causing the error.

* For an erroneous excess debt transfer order:

- Based on the excess fund transfer record, the sending member bank shall issue a cancellation order for the debt transfer (in accordance with Appendix Model No. 2) to cancel the excess transferred amount and record it (this cancellation order will be sent for settlement at the next settlement session).

- If the excess amount has been paid to the customer but the account balance is insufficient to execute the cancellation order for the excess transferred amount, the sending member bank shall record the excess amount as receivables (under the sub-account of the individual responsible for the error) and then take all measures to recover the amount. If recovery is not possible, the responsible party must compensate according to the prescribed regime.

c/ Case of reverse error:

The sending member bank must prepare a record simultaneously and issue a cancellation order for the debt transfer (for an erroneously reversed credit transfer order) and request the cancellation of the credit transfer order (for an erroneously reversed debit transfer order) to cancel the entire erroneously reversed payment order, then issue a correct payment order.

- Adjustment of erroneously reversed credit transfer entry:

+ Should have recorded: Debit: appropriate account

Credit: settlement offset account of the member bank

+ But recorded: Debit: settlement offset account of the member bank

Credit Account: Appropriate

+ Now must adjust by issuing a cancellation order for the debt transfer to the settlement bank and recording:

Then issue a correct credit transfer order.

- Adjustment of erroneously reversed debit transfer entry:

+ Should have recorded: Debit: settlement offset account of the member bank

Credit Account: Appropriate

+ But recorded: Debit: appropriate account

Credit: settlement offset account of the member bank

+ Now must adjust by issuing a cancellation order for the credit transfer to the receiving member bank and preparing a transfer voucher, recording

then issue a correct debit transfer order.

3. In the event of discrepancies between the electronic settlement result table in the session (the payment orders sent by the bank for settlement are listed on the electronic settlement result table) and the database at the bank, the member bank must immediately investigate the settlement bank to find the cause and solution. If the discrepancy is due to unauthorized external intrusion, the electronic settlement activity must be stopped immediately and coordinated with the settlement bank while informing relevant authorities to handle the situation. Settlement activities can only resume after the cause has been clarified and the system secured.

4. For other errors such as incorrect names, account numbers of the payee, incorrect document symbols and transaction contents... (errors not within the scope of control and verification), upon receipt of inquiries from the receiving bank, the sending bank must promptly respond to the inquiry.

Article 22. Article adjusting errors at the lead bank

- When receiving payment orders together with lists from member banks sending payment orders, the lead bank must compare and check according to regulations. If errors such as:

+ Incorrect electronic signatures, secret symbols.

+ Errors in elements on the payment order compared to the list of payment orders transferred to the lead bank, discrepancies between elements and the total number of payment orders with the elements and the total number of payment orders listed on the list of payment orders transferred to the lead bank in the settlement session, then the lead bank must immediately investigate the member bank that sent the order to determine the cause.

* If it is found that the error is due to the member bank issuing the order, the lead bank must return the incorrect payment order and the incorrect list sent by the member bank and request to resend the correct payment order and list if the errors are detected before the electronic netting settlement is carried out.

* If the error is due to unauthorized access from the bank, the lead bank must immediately stop the electronic netting settlement and cooperate with relevant authorities to identify the cause and take measures to resolve it. Only after the cause has been clarified and the system has been secured can the lead bank resume electronic netting settlement.

* For cases of incorrect secret symbols, electronic signatures, security keys in electronic netting settlement or telegrams with transmission errors, the lead bank must return the entire telegram to the bank that sent the order.

- In case the lead bank receives a payment order but the sending bank does not send the payment order or the lead bank receives a payment order but does not send it, the payment order should be stopped and the cause investigated. If there is an external intrusion causing fake payment orders, the lead bank must cooperate with the member bank to handle the fake payment order, while stopping the electronic netting settlement and informing relevant authorities. The electronic netting settlement can only resume once the cause has been clarified and the system secured.

- If errors are discovered after the electronic netting settlement has been completed, the lead bank must immediately notify the receiving bank to stop the execution of the erroneous payment order, and simultaneously inform the sending bank to issue a cancellation order and adjust in the next settlement session.

- In case a payment order is lost during transmission, the lead bank must resend the payment order to the receiving bank and clearly record the number of resends on the payment order and the reason for loss to prevent multiple settlements.

Article 23: Article adjusting errors at the receiving member bank

1. Upon receiving payment orders and lists from the lead bank, the member bank must control and compare according to regulations. If errors such as:

+ Incorrect electronic signatures, secret symbols.

+ Discrepancies between payment order elements and the electronic netting settlement result list.

In these cases, the receiving member bank is not allowed to settle and must immediately investigate the lead bank to clarify the cause and handle according to regulations:

- Cancel the incorrect payment order and request the lead bank to resend the correct payment order only when it is certain that the error was caused by technical failure.

- If a fake payment order or suspected fake payment order or unauthorized information intrusion is detected, the receiving member bank must promptly notify the lead bank and cooperate to apply necessary preventive measures to ensure asset safety and system security.

- If errors in payment order elements are discovered after executing the payment order for customers, the receiving member bank must recover the settled amount or take measures to prevent potential losses; and simultaneously inform the lead bank and the sending bank to take appropriate actions.

2. If a payment order sent by the lead bank is received more than once or there is a risk of being sent more than once, the receiving bank must immediately notify the lead bank about the duplicate payment order.

3. When checking and comparing, if the receiving bank finds discrepancies in the number of payment orders compared to the settlement result list or confusion with another bank's payment order, the receiving member bank must handle:

* Must account according to the accurate data provided by the lead bank.

* Then:

+ For cases where the number of payment orders exceeds the settlement result list:

Do not execute the excess payment order but must immediately investigate the lead bank to determine the cause and take appropriate measures to ensure asset safety and system security.

+ In cases where the number of payment orders is less than the settlement result list, the receiving member bank must immediately investigate the lead bank. If the missing payment order is confirmed, the lead bank must supplement the missing payment order.

+ In cases of confusion with another bank's payment order:

If it is another bank's payment order participating in netting settlement or not participating in netting settlement with its own bank or a payment order with errors that cannot be settled, the receiving member bank must return the incorrect payment order to the sending bank in the next settlement session. Strictly prohibit member banks from transferring payment orders.

4. For underpaid payment orders

Upon receiving a supplementary payment order for underpayment from the sending member bank, the receiving member bank must strictly recheck the underpaid payment order and the supplementary payment order. If valid, the supplementary payment order should be accounted for like regular payment orders.

5. For overpaid payment orders

a/ In case of detection before posting to the customer's account: If the receiving member bank receives a notification or inquiry from the sending member bank prior to receiving the payment order, the receiving member bank must open a record to track erroneous payment orders for timely handling.

- Upon receipt of the payment order from the lead bank to the receiving bank, the receiving bank must control and reconcile with the received content. If the error has been reported, it will be handled as follows:

+ For a credit transfer order, record:

+ For a debit transfer order, record:

When receiving a request to cancel a credit transfer order for excess amount (in case of excess credit transfer order) or a request to cancel a debit transfer order for excess amount (in case of excess debit transfer order) from the sending member bank, handle as follows:

- For an excess credit transfer order: Based on the request to cancel the credit transfer order, issue a credit transfer order to return the excess amount recorded as:

- For an excess debit transfer order: Based on the cancellation of the debit transfer order, record:

b/ In case of receiving a notification of excess funds from the sending member bank after payment has been made to the customer, the receiving member bank must open a record to track erroneous payment orders and handle as follows:

- For an excess credit transfer order: Upon receipt of a request to cancel a credit transfer order for the excess amount paid from the sending member bank, if verified correctly, the receiving member bank handles as follows:

+ If the customer's account balance is sufficient to recover the excess amount transferred: Based on the request to cancel the credit transfer order, issue a credit transfer order to return the excess amount to the sending member bank for settlement in the next interbank settlement statement:

+ If the customer's deposit account balance is insufficient to recover the excess amount, the receiving member bank opens a record to track unprocessed requests to cancel the credit transfer order and requests the customer to deposit money into their account to fulfill this request. Once the customer deposits the required amount, the accountant records the cancellation of the unprocessed request to cancel the credit transfer order, issues a credit transfer order for settlement, and processes as previously instructed.

+ If the customer is unable to pay or the customer is an unknown traveler, the receiving member bank must cooperate with local authorities and law enforcement agencies such as the Police, Courts, etc., to take all measures to recover the funds. After applying all recovery measures without success or insufficient recovery, the receiving member bank refuses acceptance. Record the cancellation of the credit transfer order with a clear refusal reason attached with the recovered amount (if any), return to the sending member bank while recording the cancellation of the unprocessed credit transfer order request.

6. If errors are detected in the Electronic Settlement Result Table sent by the lead bank, the receiving member bank shall proceed to handle as follows:

- Do not post the erroneous electronic settlement result table.

- Send an inquiry to the lead bank to determine the cause of the error:

+ If the cause of the error is determined to be due to technical faults or incorrect calculations by the lead bank, request the lead bank to resend the correct Electronic Settlement Result Table and proceed with normal posting (after receiving the correct interbank settlement statement).

+ If the cause of the error is determined to be due to unauthorized system intrusion causing data distortion, cooperation with the lead bank and relevant authorities to find solutions and suspend electronic settlement operations. Electronic settlement operations can only resume after the cause has been clarified and additional security measures have been implemented to prevent external intrusions.

7. Adjust other errors:

a/ For payment orders with incorrect customer addresses (payment orders transferred correctly to the receiving member bank but there is no recipient or the recipient has an account at another bank): The receiving member bank posts the payment order to other pending payment accounts and issues a payment order to return to the sending member bank along with a notice of refusal to process the payment order (clearly stating the reason). Strictly prohibit the receiving member bank from transferring the payment order arbitrarily.

b/ When controlling and detecting errors such as incorrect names, account numbers of the payment order recipient (correct name but wrong number or vice versa), document symbols, transaction types:

The receiving member bank that has not yet posted the payment order must immediately inquire the sending member bank. Only after re-verifying correctly should further processing continue. The receiving member bank records these errors in the tracking ledger of erroneous payment orders for reference and reconciliation when necessary.

Upon receiving the response to the inquiry from the sending member bank, the receiving member bank proceeds to handle the posting according to the regulations.

If the receiving member bank does not receive a response to the inquiry from the sending member bank during the settlement session, the receiving member bank will return the erroneous payment orders to the sending member bank.

Article 24. For payment order cancellations requested by customers.

1. Handling at the sending member bank:

Upon receiving a request to cancel a credit transfer order (for credit transfer cancellation) or a cancellation of a debit transfer order (for debit transfer cancellation) from the customer, the sending member bank must verify the validity of the request to cancel the credit transfer order or the cancellation of the debit transfer order. If invalid, return to the customer. If valid, handle as follows:

1.1. In case of cancelling a payment order that has not yet been executed (has not yet been sent for electronic interbank settlement):

The member bank shall send an instruction to the customer notifying acceptance of the request to cancel a credit transfer order or a debit transfer order and shall not proceed with the execution of that payment instruction (no accounting entry).

1.2. In the case of cancelling a payment order that has been executed and sent:

- For the request to cancel a credit transfer order:

+ Based on a valid request to cancel a credit transfer order from the customer, the electronic payment settlement accountant shall supplement the elements of the request to cancel the credit transfer order (according to Appendix Model No. 3) and affix their electronic signature to the cancellation request.

+ The controller must recheck the elements of the newly created request to cancel the credit transfer order against the customer's request to cancel the credit transfer order to ensure accuracy and correctness. If correct, the controller shall affix their electronic signature to the cancellation request and immediately send it to the receiving member bank.

The sending member bank shall record the cancellation request for credit transfer orders in its tracking ledger.

Upon receipt of the credit transfer order from the receiving bank returning the amount of the cancelled credit transfer order, the sending member bank shall base on the credit transfer order to account:

Debit Account: Interbank Settlement of Member Bank

Credit Account: Suitable (previously debited account)

- For the cancellation of a delegated debit transfer order:

Based on the cancellation order, the sending member bank shall proceed to deduct from the customer's previously credited account to return to the receiving member bank:

Debit Account: Suitable (previously credited account)

Credit: settlement offset account of the member bank

2. Processing at the receiving member bank:

2.1. For the cancellation of a debit transfer order: upon receipt of the cancellation order from the lead bank, the receiving member bank shall proceed to execute it as a normal credit transfer order.

- If a mistake in the request to cancel a credit transfer order is detected, the receiving member bank shall prepare a notice of refusal to accept the cancellation request (clearly stating the reasons for refusal) and return it to the sending member bank while also informing the lead bank of the reasons for refusal.

- If a mistaken cancellation order for a debit transfer order is received (this order is received during the payment settlement session), then the receiving member bank shall handle it as if it were a mistaken credit transfer order.

2.2. If the cancellation request or order is valid, the following actions shall be taken:

a/ Cancel a payment order that has not yet been executed

The receiving member bank shall immediately notify the sending member bank of acceptance of the cancellation request.

- For a credit transfer order:

+ Based on the incoming credit transfer order (cancelled credit transfer order), account:

Debit Bank Settlement Account of the Member Bank

Credit Other Pending Payment Accounts

+ Based on the cancellation request, create a credit transfer order to return to the sending member bank in the next settlement session and account:

Debit Other Pending Payment Accounts

Credit Settlement Account of NHTV

- For a debit transfer order:

+ Based on the incoming cancellation order for a debit transfer order, account:

Debit Bank Settlement Account of the Member Bank

Credit Suitable Account (previously credited according to the debit transfer order of the previous settlement session)

b/ Cancel a payment order that has already been executed:

- For an incoming request to cancel a credit transfer order:

+ If the incoming credit transfer order has already been executed, the receiving member bank must immediately send a cancellation request to the customer to notify them. Only in the event that the customer agrees (in writing) or deposits cash to issue a payment document to deduct from their own account to return, will the receiving member bank execute the cancellation request and create a credit transfer order for settlement and account:

Debit Suitable Account (previously credited according to the cancelled credit transfer order of the previous settlement session)

Credit Settlement Account of NHTV

Afterward, it must notify the sending member bank and the lead bank of acceptance of the cancellation request.

+ For a cancellation request without the customer's agreement to return funds, the receiving member bank shall prepare a notice of refusal to accept the cancellation request (clearly stating the reasons) and return it to the sending member bank and the lead bank.

- For an incoming cancellation order for a debit transfer order:

Based on the incoming cancellation order for a debit transfer order, the receiving member bank shall account:

Debit Bank Settlement Account of the Member Bank

Credit Suitable Account (previously debited according to the debit transfer order of the previous settlement session)

Part 3:

IMPLEMENTING PROVISIONS

Article 25. The Director of the Accounting and Finance Department, the Chief Inspector of the State Bank of Vietnam within their scope of functions and responsibilities shall be responsible for guiding, monitoring, and inspecting the implementation of electronic payment settlement operations between banks.

The Director of the State Bank of Vietnam’s Transaction Department, the Director of the provincial or centrally-administered city branch of the State Bank of Vietnam, and the General Director (Director) of service providers shall be responsible for organizing and directing the implementation of this process in their respective units.

Article 26. Any amendments or supplements to this process shall be decided by the Governor of the State Bank of Vietnam.