Decision No. 46/1999/QĐ-NHNN6 promulgates regulations on issuance operations and cash management within the State Bank of Vietnam system.

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

BANH HÀNH REGULATIONS ON ISSUANCE AND MONETARY BALANCING OPERATIONS

WITHIN THE STATE BANK SYSTEM

GOVERNOR OF THE STATE BANK OF VIETNAM

BASED ON THE LAW ON THE STATE BANK OF VIETNAM NUMBER 01/1997/QH 10 DATED DECEMBER 12, 1997;

BASED ON DECREE NO. 15/CP DATED MARCH 2, 1993 OF THE GOVERNMENT ON THE TASKS, POWERS, AND RESPONSIBILITIES FOR STATE MANAGEMENT OF MINISTRIES AND GOVERNMENTAL BODIES AT THE MINISTRY LEVEL; BASED ON DECREE NO. 87/1998/NĐ-CP DATED OCTOBER 31, 1998 OF THE GOVERNMENT ON THE ISSUE, RECALL, AND REPLACEMENT OF PAPER MONEY AND METAL COINS; IN ACCORDANCE WITH THE PROPOSAL OF THE HEAD OF THE ISSUE AND TREASURY AFFAIRS DEPARTMENT,

THIS DECISION ADOPTS THE REGULATIONS ON ISSUANCE AND MONETARY BALANCING OPERATIONS WITHIN THE STATE BANK SYSTEM.

DECISION:

Article 1. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE AND REPLACE DECISION NO. 84/QĐ-NH DATED MARCH 25, 1995 OF THE GOVERNOR OF THE STATE BANK OF VIETNAM ON THE REGULATIONS ON MONETARY BALANCING OPERATIONS WITHIN THE STATE BANK SYSTEM.

Article 2. THE CHIEF OF THE OFFICE, HEAD OF THE ISSUE AND TREASURY AFFAIRS DEPARTMENT, HEAD OF THE ACCOUNTING AND FINANCE DEPARTMENT, HEAD OF THE OVERSIGHT DEPARTMENT, HEADS OF THE UNITS INVOLVED AT THE STATE BANK OF VIETNAM HEAD OFFICE; GENERAL DIRECTORS (OR DIRECTORS) OF CREDIT ORGANIZATIONS, DIRECTORS OF STATE BANK BRANCHES, DIRECTORS OF PROVINCE AND CITY SUB-BRANCHES OF THE STATE BANK ARE RESPONSIBLE FOR IMPLEMENTING THIS DECISION./.

Article 3. REGULATIONS ON ISSUANCE AND MONETARY BALANCING OPERATIONS WITHIN THE STATE BANK SYSTEM (ISSUED TOGETHER WITH DECISION NO. 46/1

QĐNHNN6 DATED FEBRUARY 5, 1999

THE STATE BANK OF VIETNAM (HEREINAFTER REFERRED TO AS THE STATE BANK) IS AUTHORIZED TO ESTABLISH THE ISSUE RESERVE FUND AND THE ISSUE BUSINESS FUND TO MANAGE THE ISSUE RESERVE FUNDS AND TO PERFORM ISSUE OPERATIONS BASED ON THE ANNUAL PLAN FOR ADDITIONAL CASH SUPPLY APPROVED BY THE GOVERNMENT; THE NEEDS FOR CASH PAYMENTS IN THE ECONOMY; THE NEEDS FOR REPLACING MONEY THAT DOES NOT MEET CIRCULATION STANDARDS AND SUSPENDED CURRENCY.999/THE STATE BANK SHALL PERFORM THE TASK OF MONETARY BALANCING ACROSS THE TERRITORY OF THE SOCIALIST REPUBLIC OF VIETNAM THROUGH THE ACTIVITIES OF THE ISSUE RESERVE FUNDS AND THE ISSUE BUSINESS FUNDS MANAGED AND STORED AT THE CENTRAL TREASURY, THE BRANCH TREASURY OF THE STATE BANK, AND THE PROVINCE AND CITY SUB-BRANCH TREASURIES OF THE STATE BANK.

of the Governor of the State Bank)

PART I

GENERAL PROVISIONS

Article 1. THE ISSUE RESERVE FUND INCLUDES PAPER MONEY AND METAL COINS THAT HAVE BEEN ANNOUNCED FOR CIRCULATION, NOT YET ANNOUNCED FOR CIRCULATION, SUSPENDED FROM CIRCULATION, AND MONEY THAT DOES NOT MEET CIRCULATION STANDARDS TRANSFERRED FROM THE ISSUE BUSINESS FUND.

Article 2. a) THE ISSUE RESERVE FUND AT THE CENTRAL TREASURY IS ENTERED WITH NEWLY PRODUCED MONEY FROM PRINTING AND MINTING HOUSES; IT CAN BE TRANSFERRED TO AND FROM THE ISSUE BUSINESS FUND AT THE BRANCH TREASURY OF THE STATE BANK AND THE SUB-BRANCH TREASURIES OF THE STATE BANK.

Chapter II

SPECIFIC PROVISIONS

Article 3. b) THE ISSUE RESERVE FUND AT THE SUB-BRANCH TREASURIES OF THE STATE BANK (EXCLUDING MONEY NOT YET ANNOUNCED FOR CIRCULATION) CAN BE DIRECTLY TRANSFERRED TO AND FROM THE ISSUE BUSINESS FUND MANAGED BY THE SUB-BRANCH; IT CAN ALSO BE TRANSFERRED TO AND FROM THE ISSUE RESERVE FUND AT THE CENTRAL TREASURY AND OTHER SUB-BRANCH TREASURIES OF THE STATE BANK.

CASES ALLOWED FOR TRANSFERS TO AND FROM THE ISSUE RESERVE FUND:

1. TRANSFERS BETWEEN ISSUE RESERVE FUNDS AT THE CENTRAL TREASURY; BETWEEN THE ISSUE RESERVE FUND AT THE CENTRAL TREASURY AND THE ISSUE RESERVE FUND AT THE SUB-BRANCH TREASURY OF THE STATE BANK; AND BETWEEN ISSUE RESERVE FUNDS AT THE SUB-BRANCH TREASURIES OF THE STATE BANK.

Article 4. 2. THE ISSUE RESERVE FUND AT THE CENTRAL TREASURY CAN TRANSFER TO OR FROM THE ISSUE BUSINESS FUND AT THE BRANCH TREASURY OF THE STATE BANK;

3. THE ISSUE RESERVE FUND AT THE SUB-BRANCH TREASURIES OF THE STATE BANK CAN TRANSFER TO OR FROM THE ISSUE BUSINESS FUND MANAGED BY THE SUB-BRANCH;

4. ENTER NEWLY PRINTED AND MINTED CASH INTO THE ISSUE RESERVE FUND AT THE CENTRAL TREASURY; I 5. ENTER CASH THAT DOES NOT MEET CIRCULATION STANDARDS AND SUSPENDED CURRENCY COLLECTED FROM CIRCULATION INTO THE ISSUE BUSINESS FUND;

6. TRANSFER DIFFERENT TYPES OF CASH TO CHANGE THE STRUCTURE OF CASH IN THE ISSUE BUSINESS FUND AT THE BRANCH TREASURY OF THE STATE BANK AND SUB-BRANCHES OF THE STATE BANK;

7. TRANSFER CASH THAT DOES NOT MEET CIRCULATION STANDARDS AND SUSPENDED CURRENCY FOR DESTRUCTION AS PER THE GOVERNOR'S REGULATIONS;

8. TRANSFER NEWLY ISSUED CASH THAT HAS BEEN ANNOUNCED FOR CIRCULATION BY THE GOVERNMENT.

1. THE HEAD OF THE ISSUE AND TREASURY AFFAIRS DEPARTMENT MAY ISSUE ORDERS FOR TRANSFERS TO AND FROM THE ISSUE RESERVE FUND AT TREASURIES WITHIN THE STATE BANK SYSTEM IN THE CASES SPECIFIED IN CLAUSE 1, 2, 4, 7, AND 8 OF ARTICLE 4 OF THESE REGULATIONS.

2. THE DIRECTOR OF THE SUB-BRANCH OF THE STATE BANK IN PROVINCES AND CITIES MAY ISSUE ORDERS FOR TRANSFERS OF CASH BETWEEN THE ISSUE RESERVE FUND AND THE ISSUE BUSINESS FUND MANAGED BY THE SUB-BRANCH IN THE CASES SPECIFIED IN CLAUSE 3, 5, AND 6 OF ARTICLE 4 OF THESE REGULATIONS. THE DIRECTOR OF THE SUB-BRANCH OF THE STATE BANK IN PROVINCES AND CITIES IS RESPONSIBLE FOR PERFORMING TRANSFERS TO AND FROM THE ISSUE RESERVE FUND AT THE SUB-BRANCH TO ENSURE THE REQUIREMENTS FOR CASH RECEIPTS AND PAYMENTS TO CUSTOMERS.

THE ISSUE BUSINESS FUND INCLUDES PAPER MONEY AND METAL COINS USED FOR DAILY TRANSACTIONS BETWEEN THE STATE BANK AND CUSTOMERS WITH RELATIONSHIP SERVICES SUCH AS TREASURY AND PAYMENT SERVICES WITH THE STATE BANK AND OTHER BUSINESS OPERATIONS OF THE STATE BANK. THE ISSUE BUSINESS FUND AT THE BRANCH TREASURY OF THE STATE BANK CAN BE TRANSFERRED TO AND FROM THE ISSUE RESERVE FUND AT THE CENTRAL TREASURY AND THE CASH FUNDS OF CUSTOMERS WITH RELATIONSHIP SERVICES SUCH AS TREASURY AND PAYMENT SERVICES WITH THE STATE BANK HEAD OFFICE.

Article 5.

THE ISSUE BUSINESS FUND OF THE SUB-BRANCH OF THE STATE BANK IN PROVINCES AND CITIES CAN BE TRANSFERRED TO AND FROM THE ISSUE RESERVE FUND AT THE SUB-BRANCH AND THE CASH FUNDS OF CUSTOMERS WITH RELATIONSHIP SERVICES SUCH AS TREASURY AND PAYMENT SERVICES WITH THE SUB-BRANCH OF THE STATE BANK.

THE DIRECTOR OF THE BRANCH TREASURY OF THE STATE BANK AND THE DIRECTOR OF THE SUB-BRANCH OF THE STATE BANK SHALL PERFORM THE TASK OF ISSUING MONEY INTO CIRCULATION AND COLLECTING MONEY FROM CIRCULATION THROUGH THE ISSUE BUSINESS FUND MANAGED BY THE BRANCH TREASURY OR THE SUB-BRANCH TO ENSURE TIMELY AND FULL SATISFACTION OF THE CASH REQUIREMENTS OF CREDIT ORGANIZATIONS AND NATIONAL TREASURY WITHIN THE LIMIT OF THEIR DEPOSIT ACCOUNT BALANCES.

The Issuance Reserve Fund and the Issuance Operational Fund at the Branch Management shall be subject to the cases stipulated in Clauses 3, 5, and 6 of Article 4 of this Regulation.

Article 6. The Director of the Branch of the State Bank of Vietnam in provinces and cities is responsible for implementing the issuance and withdrawal of the Issuance Reserve Fund to ensure the demand for cash receipts and payments with customers.

Article 7. The Issuance Operational Fund includes various types of paper money and metal coins used for daily transactions between the State Bank and customers with banking service relationships, payment services with the State Bank, and other operational activities of the State Bank. The Issuance Operational Fund at the Trading Department of the State Bank shall be issued and withdrawn from the Issuance Reserve Fund at the Central Treasury and the cash funds of customers with banking service relationships with the Central State Bank. I The Issuance Operational Fund of the State Bank Branch in provinces and cities shall be issued and withdrawn from the Issuance Reserve Fund at the Branch and the cash funds of customers with banking service relationships with the Branch of the State Bank.

The Director of the Trading Department of the State Bank, and the Director of the State Bank Branch shall carry out currency issuance into circulation and the collection of currency from circulation through the Issuance Operational Fund managed by the Trading Department or the Branch, ensuring timely and adequate fulfillment of the cash requirements of credit organizations and National Treasury within the scope of their deposit account balances.

Article 8. II,

Article 9. BASED ON THE NEED FOR RECEIPTS AND EXPENDITURES IN CASH; THE AREA AND SAFETY CONDITIONS OF EACH BRANCH'S CURRENCY DEPOT, EVERY SIX MONTHS OR AS NECESSARY. THE HEAD OF THE ISSUE AND TREASURY AFFAIRS DEPARTMENT SHALL PROPOSE THE LEVEL OF FUNDS TO BE HELD IN THE ISSUE BUSINESS FUNDS AT THE STATE BANK TRANSACTION DEPARTMENT; PROPOSE THE LEVEL OF FUNDS TO BE HELD IN THE ISSUE RESERVE FUNDS AND ISSUE BUSINESS FUNDS AT EACH BRANCH OF THE STATE BANK FOR APPROVAL BY THE GOVERNOR. THE DIRECTORS OF THE STATE BANK TRANSACTION DEPARTMENT AND THE BRANCHES OF THE STATE BANK MUST STRICTLY COMPLY WITH THE LEVELS OF FUNDS TO BE HELD IN THE ISSUE RESERVE FUNDS AND ISSUE BUSINESS FUNDS THAT HAVE BEEN APPROVED. IN SPECIAL CASES, THE ISSUE RESERVE FUNDS AND ISSUE BUSINESS FUNDS AT THE STATE BANK TRANSACTION DEPARTMENT AND THE BRANCHES OF THE STATE BANK IN PROVINCES AND CITIES MAY BE SET AT A HIGHER OR LOWER LEVEL THAN THE APPROVED LEVEL TO SUIT THE CHANGES IN CASH RECEIPTS AND EXPENDITURES IN EACH PERIOD.

Article 10. BASED ON THE LEVEL OF FUNDS TO BE HELD IN THE ISSUE RESERVE FUNDS AND THE PROGRESS OF IMPLEMENTATION OF THE ISSUE RESERVE FUNDS' EXPORT AND IMPORT ACTIVITIES AT EACH BRANCH OF THE STATE BANK, THE HEAD OF THE ISSUE AND TREASURY AFFAIRS DEPARTMENT IS AUTHORIZED TO ISSUE ORDERS TO REORGANIZE AND IMPLEMENT THE TRANSFER OF CASH BETWEEN ISSUE RESERVE FUNDS TO ENSURE THAT EACH PROVINCE AND CITY BRANCH OF THE STATE BANK MEETS THE REQUIRED LEVEL OF FUNDS TO BE HELD IN THE ISSUE RESERVE FUNDS TO MEET THE DEMANDS FOR CIRCULATING CASH IN THEIR RESPECTIVE AREAS.

Article 11. THE HEAD OF THE ISSUE AND TREASURY AFFAIRS DEPARTMENT IS RESPONSIBLE TO THE GOVERNOR FOR THE RESULTS OF CASH BALANCE MANAGEMENT TO ENSURE SUFFICIENT CASH FOR THE DISBURSEMENT REQUIREMENTS OF THE NATIONAL TREASURY, FINANCIAL INSTITUTIONS WITH TREASURY SERVICES AND PAYMENT RELATIONS WITH THE STATE BANK, AND IS DIRECTLY RESPONSIBLE TO THE GOVERNOR FOR THE SAFETY OF ALL ASSETS STORED IN OTHER CURRENCY DEPOTS IN THE STATE BANK SYSTEM.

Article 12. THE DIRECTOR OF THE STATE BANK TRANSACTION DEPARTMENT AND THE DIRECTORS OF THE STATE BANK BRANCHES SHALL ESTABLISH REASONABLE TIMES FOR CASH TRANSACTIONS WITH CUSTOMERS; ESTABLISH THE TIMES FOR END-OF-DAY COUNTS OF THE ISSUE RESERVE FUNDS AND ISSUE BUSINESS FUNDS IN ACCORDANCE WITH CURRENT REGULATIONS BUT MUST ENSURE THAT CASH RECEIPTS AND EXPENDITURES ARE TIMELY ACCORDING TO THE REQUIREMENTS OF CUSTOMERS WHO HAVE ACCOUNTS AT THE STATE BANK TRANSACTION DEPARTMENT OR THE STATE BANK BRANCHES.

Article 13. THE COLLECTION OF INFORMATION AND STATISTICAL REPORTS ON ISSUE AND TREASURY OPERATIONS ARE AS FOLLOWS:

1. AT THE STATE BANK TRANSACTION DEPARTMENT AND THE STATE BANK BRANCHES: THE STATE BANK TRANSACTION DEPARTMENT AND THE STATE BANK BRANCHES SHALL PROVIDE INFORMATION TO THE STATE BANK HEADQUARTERS (ISSUE AND TREASURY AFFAIRS DEPARTMENT) THROUGH THE FOLLOWING MEANS: COMPUTER NETWORKS, FAX, WRITTEN DOCUMENTS, TELEPHONE.

THE INFORMATION PROVIDED MUST COMPLY WITH THE REGULATIONS SET OUT IN DECISION NUMBER 681/TTg DATED NOVEMBER 15, 1994, ISSUED BY THE PRIME MINISTER REGARDING THE LIST OF STATE SECRETS IN THE BANKING INDUSTRY.

a) DAILY TELEGRAMS: THE STATE BANK TRANSACTION DEPARTMENT AND THE STATE BANK BRANCHES SHALL TRANSMIT DATA THROUGH THE COMPUTER NETWORK TO THE STATE BANK HEADQUARTERS (ISSUE AND TREASURY AFFAIRS DEPARTMENT) BEFORE 9 AM ON WORKING DAYS REGARDING THE SITUATION OF CASH AT THE END OF THE PREVIOUS DAY'S WORKING HOUR AT THE STATE BANK TRANSACTION DEPARTMENT OR THE STATE BANK BRANCHES, COVERING THE FOLLOWING CONTENTS:

THE TOTAL EXPORT, THE TOTAL IMPORT OF THE ISSUE BUSINESS FUNDS (ACCUMULATED FROM THE BEGINNING OF THE MONTH AND EXCLUDING EXPORTS AND IMPORTS BETWEEN THE ISSUE RESERVE FUNDS AND THE ISSUE BUSINESS FUNDS).

THE CASH REMAINING IN THE ISSUE RESERVE FUNDS (INCLUDING: CASH MEETING CIRCULATION STANDARDS, CASH NOT MEETING CIRCULATION STANDARDS, SUSPENDED CIRCULATION CASH), THE CASH REMAINING IN THE ISSUE BUSINESS FUNDS.

b) REGULAR REPORTS:

THE TOTAL EXPORT, THE TOTAL IMPORT, AND THE NET EXPORT (OR NET IMPORT) OF THE ISSUE RESERVE FUNDS: TELEGRAMS EVERY 5 DAYS ON THE NEXT WORKING DAY AFTER THE 5TH, 10TH, 15TH... AND THE LAST DAY OF THE MONTH, THE TOTAL ACCUMULATED FROM PRIOR PERIODS (EXCLUDING EXPORTS AND IMPORTS BETWEEN ISSUE RESERVE FUNDS WITHIN THE STATE BANK SYSTEM); THE BALANCE OF CASH RECEIPTS AND EXPENDITURES OF THE STATE BANK: REPORTED ONCE PER MONTH.

2. AT THE STATE BANK HEADQUARTERS:

a) THE CURRENCY DEPOTS I AND CURRENCY DEPOT II III HAVE THE TASK OF TRANSMITTING THROUGH THE COMPUTER NETWORK TO THE STATE BANK (ISSUE AND TREASURY AFFAIRS DEPARTMENT) BEFORE 9 AM ON WORKING DAYS THE DATA ON THE CASH REMAINING IN THE ISSUE RESERVE FUNDS (INCLUDING: CASH MEETING CIRCULATION STANDARDS, CASH NOT MEETING CIRCULATION STANDARDS, AND SUSPENDED CIRCULATION CASH) AT CURRENCY DEPOT 1. An application form (according to the prescribed form), affixed with the child's photo, stamped and confirmed by the head of the police station where the child is registered as a permanent resident or long-term temporary resident; attached are two identical photos, size 3 x 4 cm, taken looking straight ahead, bareheaded, without colored glasses, taken within the last year; II, III II,

CENTRAL, UP TO THE END OF THE PREVIOUS DAY'S WORKING HOUR.

b) THE ISSUE AND TREASURY AFFAIRS DEPARTMENT SHALL AGGREGATE NATIONAL DATA ON THE SITUATION OF CASH IN THE STATE BANK SYSTEM ACCORDING TO THE CONTENTS SPECIFIED IN CLAUSE 1 AND SUBPARAGRAPH a OF CLAUSE 2 OF THIS ARTICLE TO SERVE AS THE BASIS FOR ORGANIZING THE BALANCING OF CASH CIRCULATION.

c) THE HEAD OF THE ISSUE AND TREASURY AFFAIRS DEPARTMENT SHALL AGGREGATE THE FOLLOWING DATA AND REPORT TO THE GOVERNOR OF THE STATE BANK ON A REGULAR BASIS:

THE TOTAL EXPORT, THE TOTAL IMPORT, AND THE ACCUMULATED EXPORT, IMPORT OF CASH THROUGH THE ISSUE BUSINESS FUNDS (EXCLUDING EXPORTS AND IMPORTS BETWEEN THE ISSUE RESERVE FUNDS AND THE ISSUE BUSINESS FUNDS) AND THE REMAINING FUNDS IN THE ISSUE RESERVE FUNDS AND ISSUE BUSINESS FUNDS OF THE ENTIRE STATE BANK SYSTEM EVERY 5 DAYS;

Chapter III

REPORT ON THE IMPLEMENTATION OF EXPORTS, IMPORTS, NET EXPORTS (OR NET IMPORTS) OF THE ISSUE RESERVE FUNDS AND ISSUE BUSINESS FUNDS QUARTERLY AND THE PROJECTED EXPORTS, IMPORTS, NET EXPORTS (OR NET IMPORTS) OF THE ISSUE RESERVE FUNDS AND ISSUE BUSINESS FUNDS FOR THE NEXT QUARTER.

Article 14. IMPLEMENTATION ORGANIZATION THE HEAD OF THE ISSUE AND TREASURY AFFAIRS DEPARTMENT IS RESPONSIBLE FOR GUIDING THE STATE BANK TRANSACTION DEPARTMENT AND THE STATE BANK BRANCHES IN IMPLEMENTING THIS REGULATION AND TAKING MEASURES TO CLOSELY MONITOR THE IMPLEMENTATION OF ISSUE AND CASH RECALL OPERATIONS THROUGH THE ISSUE BUSINESS FUNDS

Article 15. TO TIMELY BALANCE CASH AT THE CURRENCY DEPOTS OF THE STATE BANK.

Article 16. THE DIRECTOR OF THE STATE BANK TRANSACTION DEPARTMENT AND THE DIRECTOR OF THE STATE BANK BRANCHES SHALL BASED ON THE NEED FOR CASH PAYMENTS IN THE ECONOMY AND THE NEED TO REPLACE CASH NOT MEETING CIRCULATION STANDARDS; SUSPENDED CIRCULATION CASH TO DETERMINE THE VALUE AND STRUCTURE OF DIFFERENT TYPES OF CASH TO BE INTRODUCED INTO CIRCULATION IN EACH PERIOD OF MONTHS, QUARTERS, YEARS.

Article 17. The amendment and supplementation of the Clauses of this Provision shall be decided by the Governor of the State Bank./.