Circular No. 48/2024/TT-NHNN on the application of interest rates for Vietnamese dong deposits by organizations and individuals at credit institutions and foreign bank branches.

CIRCULAR

Regulations on the application of interest rates for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches

organizations, individuals at organization credit institutions and foreign bank branches

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

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

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

Article 1.

The Governor of the State Bank of Vietnam issues this Circular to regulate the application of interest rates for deposits in Vietnamese dong of organizations (excluding credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches.

Article 1. Scope of Regulation

1. This Circular regulates the application of interest rates for deposits in Vietnamese dong of organizations (excluding credit institutions), and individuals at credit institutions and foreign bank branches.

2. Deposits include forms of accepting deposits as prescribed in Clause 27, Article 4 of the Law on Credit Institutions.

Article 2. Applicability

Commercial banks, cooperative banks, comprehensive finance companies, specialized finance companies, people's credit funds, microfinance organizations, and foreign bank branches (hereinafter referred to as credit institutions) operating in Vietnam in accordance with the Law on Credit Institutions.

Organizations (excluding credit institutions) and individuals depositing money at credit institutions (hereinafter referred to as customers).

Article 3. Interest Rates

1. Credit institutions shall apply interest rates for deposits in Vietnamese dong of organizations and individuals not exceeding the maximum interest rate for demand deposits and time deposits under one month, and time deposits from one month to less than six months, as decided by the Governor of the State Bank of Vietnam during each period and for each type of credit institution.

2. Credit institutions shall apply interest rates for deposits in Vietnamese dong of organizations and individuals for time deposits of six months or longer based on market supply and demand.

3. The maximum interest rate for deposits in Vietnamese dong stipulated in this Circular includes all promotional expenses in any form, applicable to end-of-period interest payment methods and other interest payment methods converted to end-of-period interest payment methods.

4. Credit institutions shall publicly display interest rates for deposits in Vietnamese dong at legitimate transaction locations within their network and post them on their electronic information websites (if available). When receiving deposits, credit institutions may not conduct promotions in any form (in cash, interest rates, and other forms) that do not comply with the provisions of the law.

Article 4. Implementation provisions

1. This Circular takes effect from November 20, 2024.

2. This Circular replaces Circular No. 07/2014/TT-NHNN dated March 17, 2014, issued by the Governor of the State Bank of Vietnam regulating interest rates for deposits in Vietnamese dong of organizations and individuals at credit institutions.

3. For interest rate agreements for deposits in Vietnamese dong prior to the effective date of this Circular, credit institutions and customers shall continue to implement according to the agreement until its expiration. Upon expiration of the agreed term, if the customer does not withdraw the deposit, the credit institution shall apply the interest rate for deposits as stipulated in this Circular.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam, credit institutions, and foreign bank branches are responsible for organizing the implementation of this Circular./.