Circular No. 48/2018/TT-NHNN on savings deposits

CIRCULAR

Regulations on Savings Deposits

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

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Foreign Exchange Decree dated December 13, 2005 and the Decree Amending and Supplementing Certain Articles of the Foreign Exchange Decree dated March 18, 2013;

Pursuant to Decree No. 70/2014/NĐ-CP dated July 17, 2014 detailing the implementation of certain provisions of the Foreign Exchange Ordinance and the Ordinance Amending and Supplementing Certain Provisions of the Foreign Exchange Ordinance;

Pursuant to Decree No. 16/2017/NĐ-CP dated February 17, 2017, stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Monetary Policy Department and the Director of the Foreign Exchange Management Department;

The Governor of the State Bank of Vietnam issues this Circular on savings deposits.

Article 1. Scope of Regulation and Applicability

This Circular stipulates the relationship between credit institutions, foreign bank branches (hereinafter referred to as credit institutions) and depositors regarding savings deposits.

Article 2. Credit institutions receiving savings deposits

Credit institutions receiving savings deposits as prescribed in this Circular are credit institutions established and operating in accordance with the Law on Credit Institutions, including:

1. Commercial banks.

2. Cooperative banks.

3. Microfinance organizations.

4. People's Credit Funds.

5. Foreign bank branches.

Article 3. Depositors

1. Vietnamese citizens aged 18 years or older who have full capacity for civil acts under the law.

2. Vietnamese citizens aged 15 years or older but under 18 years old who are not restricted in their capacity for civil acts or who have not lost their capacity for civil acts under the law.

3. Vietnamese citizens who are restricted in their capacity for civil acts or who have lost their capacity for civil acts under the law or who are under 15 years old must conduct savings deposit transactions through their legal representatives; Vietnamese citizens who have difficulties in understanding and controlling their actions under the law must conduct savings deposit transactions through their guardians.

Article 4. Scope of Acceptance and Deposit of Savings Deposits

1. Credit institutions may accept savings deposits within the scope of operations permitted by law and their Licenses for Establishment and Operation.

2. Vietnamese citizens may deposit savings deposits in Vietnamese dong; Vietnamese citizens who are residents may deposit savings deposits in foreign currencies.

Article 5. Definitions

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

1. A savings deposit is a sum of money deposited by a depositor at a credit institution according to the principle of full repayment of principal and interest as agreed with the credit institution.

2. Joint savings deposits are savings deposits made by two or more depositors.

3. Savings deposit transactions include transactions of accepting and depositing savings deposits; paying out and withdrawing savings deposits; using savings deposits as collateral and transferring ownership of savings deposits.

4. Documents verifying the information of depositors are Identity Cards or Citizen Identification Cards or Passports still valid or Birth Certificates of individuals under 14 years old.

5. Documents verifying the information of legal representatives, guardians (hereinafter collectively referred to as legal representatives):

a) In case the legal representative is an individual: Identity Card or Citizen Identification Card or Passport still valid;

b) In case the legal representative is a juristic person: Decision on Establishment or Business License or Enterprise Registration Certificate or Business Registration Certificate or other equivalent documents under the law; Identity Card or Citizen Identification Card or Passport still valid and documents proving the legal representative's status of the juristic person conducting savings deposit transactions.

Article 6. Forms of Savings Deposits

1. The forms of savings deposits are classified according to:

a) Deposit term including non-term savings deposits and term savings deposits. Specific deposit terms are determined by credit institutions;

b) Other criteria determined by credit institutions.

2. Credit institutions shall specify in detail each form of savings deposit in accordance with this Circular and relevant laws, ensuring the safety of depositors' assets and the safe operation of credit institutions. Regulations on the form of savings deposits must include at least the following contents: interest payment methods, interest calculation methods, extension of deposit terms, early withdrawal of savings deposits, and cases where depositors must notify in advance about early withdrawal of savings deposits.

Article 7. Savings Certificates

1. Savings certificates or Savings Passbooks (hereinafter referred to collectively as Savings Certificates) are certificates confirming the ownership of savings deposits by depositors at credit institutions, applicable in cases where savings deposits are received at legitimate transaction locations within the network of credit institution operations.

2. Contents of Savings Certificates

a) Savings Certificates must contain at least the following contents:

(i) Name of the credit institution, seal; name and signature of the transaction officer and the authorized representative of the credit institution;

(ii) Name, identification number, and date of issuance of the identification document of the depositor or all depositors (in the case of joint savings deposits) and information of the legal representative of the depositor in the case of deposit through a legal representative;

(iii) Savings Certificate number; amount; currency; deposit date; maturity date (for term savings deposits); deposit term; interest rate; interest payment method;

(iv) Measures for depositors to check their savings deposits;

(v) Handling procedures for cases of damaged, torn, or lost Savings Certificates;

b) In addition to the contents prescribed in point a of this clause, Savings Certificates may contain other contents as specified by the credit institution.

Article 8. Locations for Receiving and Paying Out Savings Deposits

1. Credit institutions shall carry out the receipt and payment of savings deposits at legitimate transaction locations within the network of credit institution operations (hereinafter referred to as transaction locations), except in cases of receiving and paying out savings deposits via electronic means.

2. For each Savings Certificate, credit institutions may receive and pay out savings deposits at the transaction location issuing the Savings Certificate or other transaction locations of the credit institution. In cases where credit institutions receive and pay out savings deposits at multiple transaction locations, credit institutions must ensure accurate receipt and payment of savings deposits, safeguarding the assets of depositors and the safe operation of credit institutions.

Article 9. Interest Rate

1. Credit institutions shall determine interest rates for savings deposits in accordance with the State Bank of Vietnam's regulations on interest rates during each period.

2. Interest calculation methods for savings deposits shall be carried out in accordance with the State Bank of Vietnam's regulations.

3. Interest payment methods for savings deposits shall be agreed upon between credit institutions and depositors.

Article 10. Currency for receiving and paying out savings deposits

1. The currency for receiving savings deposits is the Vietnamese dong or foreign currency. Financial institutions determine the type of foreign currency for receiving savings deposits.

2. The currency for paying out savings deposits is the type of currency that the depositor has deposited. Payment for fractional foreign currency is carried out according to the guidelines of the financial institution.

3. For savings deposits in Vietnamese dongs made by Vietnamese citizens residing in Vietnam, the depositor and the financial institution may agree on the payment of principal and interest into the depositor's Vietnamese dong-denominated transaction account.

4. For savings deposits in Vietnamese dongs made by non-resident Vietnamese citizens from their transaction accounts, the depositor and the financial institution may agree on the payment of principal equal to the amount deposited and corresponding interest into the depositor's Vietnamese dong-denominated transaction account.

5. For savings deposits in foreign currency made by resident Vietnamese citizens from their transaction accounts, the depositor and the financial institution may agree on the payment of principal equal to the amount deposited and corresponding interest into the depositor's foreign currency-denominated transaction account.

Article 11. Measures for checking savings deposit amounts and notification measures when changes occur in savings deposit amounts

1. Financial institutions must provide a measure for depositors to check their savings deposit amounts.

2. In addition to the measure prescribed in Clause 1 of this Article, the financial institution and the depositor may agree on other measures for the depositor to check their savings deposit amounts and the measures for the financial institution to notify the depositor of any changes in their savings deposit amounts.

Article 12. Procedures for depositing savings deposits at the financial institution's transaction location

1. The depositor must personally go to the financial institution's transaction location and present identification documents verifying the depositor's information; in the case of joint savings deposits, all depositors must personally present identification documents verifying their own information. In the case of depositing through a legal representative, the legal representative must present documents proving their representative status, identification documents verifying the legal representative's information, and identification documents verifying the depositor's information.

2. The depositor registers a signature sample if there is a change in the signature sample or if there is no registered signature sample with the financial institution. For depositors who cannot write, read, or see: the depositor follows the instructions of the financial institution.

3. The financial institution verifies and updates the depositor's information in accordance with the law on preventing and combating money laundering.

4. The depositor completes other procedures as guided by the financial institution.

5. After completing the procedures prescribed in Clauses 1, 2, 3, and 4 of this Article, the financial institution accepts the savings deposit and issues a Savings Deposit Card to the depositor.

6. For depositing savings into an issued Savings Deposit Card:

a) In the case of depositing in cash: The depositor completes the procedures prescribed in Clauses 1, 2, 3, and 4 of this Article, presents the issued Savings Deposit Card. The financial institution receives the savings deposit, records it on the issued Savings Deposit Card, and issues the Savings Deposit Card to the depositor;

b) In the case of depositing from the depositor's transaction account: the depositor follows the procedures guided by the financial institution.

Article 13. Using Savings Deposits as Collateral

Savings deposits may be used as collateral in accordance with the guidelines of credit institutions in compliance with the provisions of the law on secured transactions.

Article 14. Transfer of Ownership of Savings Deposits

Credit institutions shall guide depositors to carry out transactions for transferring ownership of savings deposits in compliance with relevant laws, except in cases of transfer of ownership through inheritance, where the transferee must comply with the provisions set forth in Clause 2, Article 4 of this Circular.

Article 15. Extension of Deposit Period

On the maturity date of the savings deposit, if the depositor does not withdraw the money and there is no other request or agreement, the credit institution will extend the period according to its regulations on the form of the savings deposit.

Article 16. Handling Risk Cases

Credit institutions shall guide the handling of cases involving damage, tearing, loss of the Savings Deposit Card, and other risk cases related to savings deposits in compliance with relevant laws, management models, characteristics, and business conditions of the credit institution, while ensuring the legitimate rights of depositors.

Article 17. Early Withdrawal of Savings Deposits

1. Early withdrawal of savings deposits shall be carried out in accordance with the agreement between the credit institution and the depositor at the time of depositing funds.

2. The interest rate applied to early withdrawn savings deposits shall comply with the State Bank of Vietnam's regulations on interest rates applicable to early withdrawals at the time of early withdrawal.

Article 18. Procedures for Paying Out Savings Deposits at Credit Institution Transaction Locations

1. The credit institution requests the depositor to complete the following procedures:

a) Present the Savings Deposit Card;

b) Present identification documents verifying the depositor's information, of all depositors (for joint savings deposits). In cases of payment through a legal representative, the legal representative must present documents proving their representative status, identification documents verifying the legal representative's information, and identification documents verifying the depositor's information;

c) Submit a withdrawal slip for the savings deposit with a signature matching the registered sample signature at the credit institution. For depositors who cannot write, read, or see: depositors shall follow the guidance of the credit institution.

2. The credit institution verifies the depositor's information, the legal representative's information of the depositor in cases of payment through a legal representative, the information on the Savings Deposit Card, and the signature on the withdrawal slip to ensure accuracy with the information stored at the credit institution.

3. After the credit institution and the depositor have completed the procedures stipulated in Clauses 1 and 2 of this Article, the credit institution will fully pay out the principal and interest of the savings deposit to the depositor.

4. The credit institution shall guide the procedures for paying out in the following cases in compliance with this Circular and relevant laws, ensuring accurate and safe payment of savings deposits to depositors and safe operation of the credit institution:

a) Payment of savings deposits according to inheritance;

b) Payment of savings deposits according to the depositor's power of attorney.

Article 19. Implementation of receiving and paying out savings deposits through electronic means

1. Credit organizations shall guide procedures for receiving and paying out savings deposits through electronic means via the depositors' settlement accounts at credit organizations in accordance with the provisions of this Circular, laws on electronic transactions, anti-money laundering regulations, and other relevant laws to ensure accurate and secure receipt and payment of savings deposits, protecting the assets of depositors and ensuring the safety of operations for credit organizations.

2. Credit organizations must ensure the retention of all information related to the receipt and payment of savings deposits through electronic means to meet the requirements of depositors for verification, inspection, and resolution of disputes.

Article 20. Internal Regulations

1. Based on the provisions of the Law on Credit Institutions, this Circular, and relevant laws, credit organizations shall issue internal regulations on savings deposit transactions that are consistent with their management models, characteristics, and business conditions, ensuring the accuracy and security of savings deposit transactions, protecting the assets of depositors, and ensuring the safety of operations for credit organizations.

2. Internal regulations must clearly define the responsibilities and obligations of each department and individual involved in the implementation of savings deposit transactions and must include at least the following provisions:

a) Receiving savings deposits, which must include at least the following contents: receiving money, recording the accounting ledger for the receipt of savings deposits; filling in all contents prescribed in Clause 2 of Article 7 on the Savings Deposit Card; handing over the Savings Deposit Card to the depositor;

b) Paying out savings deposits, which must include at least the following contents: receiving the Savings Deposit Card; recording the accounting ledger; paying out the principal and interest of savings deposits;

c) Using savings deposits as collateral;

d) Transferring ownership rights of savings deposits;

đ) Handling cases of risk as prescribed in Article 16 of this Circular;

e) Designing, printing, inputting, exporting, storing, inventorying, and managing Savings Deposit Cards;

g) Measures for depositors to search for their savings deposit amounts and measures for credit organizations to notify depositors of changes to their savings deposit amounts as prescribed in Article 11 of this Circular;

h) Receiving and paying out savings deposits through electronic means (applicable to credit organizations implementing the receipt and payment of savings deposits through electronic means).

Article 21. Public Display

1. Credit organizations must publicly display at their transaction locations and post on their website (if available) at least the following contents:

a) Interest rates on savings deposits; fees (if applicable);

b) Types of foreign currencies accepted for savings deposits;

c) Procedures for savings deposit transactions between credit organizations and depositors;

d) Regulations on each type of savings deposit;

đ) Measures for depositors to search for their savings deposit amounts;

e) Handling of cases where the Savings Deposit Card is torn, damaged, or lost.

2. Credit organizations must comply with the contents publicly displayed according to the provisions of Clause 1 of this Article.

Article 22. Implementation Provisions

1. This Circular takes effect from July 5, 2019, and replaces Decision No. 1160/2004/QD-NHNN dated September 13, 2004, of the Governor of the State Bank of Vietnam on the issuance of the Regulation on Savings Deposits, and Decision No. 47/2006/QD-NHNN dated September 25, 2006, of the Governor of the State Bank of Vietnam on amending and supplementing certain articles of the Regulation on Savings Deposits issued together with Decision No. 1160/2004/QD-NHNN dated September 13, 2004, of the Governor of the State Bank of Vietnam.

2. For savings deposits with remaining balances on the date this Circular takes effect, credit organizations and depositors shall continue to implement according to the agreed contents or amend and supplement them in accordance with the provisions of this Circular.

3. The Vietnam Bank for Social Policies may base its guidance on savings deposit transactions at the Vietnam Bank for Social Policies on the provisions of this Circular, in accordance with the laws on the organization and operation of the Vietnam Bank for Social Policies.

Article 23. Implementation Organization

The Director of the Office, Heads of the Monetary Policy Department, Foreign Exchange Management Department, Heads of units under the State Bank of Vietnam, Governors of the State Bank of Vietnam branches in provinces and centrally-run cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, and General Directors (Directors) of credit institutions are responsible for organizing the implementation of this Circular./.