Decision No. 700/2002/QD-NHNN on Mandatory Reserve Deposits in VND for Credit Institutions Participating in Interbank Electronic Payment Systems

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

On the deposit of mandatory reserves in VND for credit institutions participating in inter-bank electronic payment systems

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

GOVERNOR OF THE STATE BANK OF VIETNAM

The mandatory reserves in VND of credit institutions that are members participating in inter-bank electronic payment systems shall be deposited into two accounts as follows:

Pursuant to the Government Decree No. 15/CP dated March 2, 1993 on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;

Pursuant to the proposal of the Director of the Monetary Policy Department,

DECISION:

Article 1. An account for demand deposits of credit institutions at the State Bank of Vietnam's Trading Department or its provincial branch where the credit institution has its main office.

An account for demand deposits of credit institutions at the State Bank of Vietnam's Trading Department for participation in inter-bank electronic payments as follows:

Responsibilities of credit institutions participating in inter-bank electronic payment systems, units under the State Bank of Vietnam, and provincial branches of the State Bank of Vietnam in implementing mandatory reserves for credit institutions that are members participating in inter-bank electronic payment systems are as follows:

Article 2. 1. Credit institutions have the responsibility to report to the State Bank of Vietnam's Trading Department or its provincial branch where the credit institution has its main office about the "average balance of deposits collected" during the "reserve determination period" as the basis for calculating the mandatory reserve amount for the "reserve maintenance period" on the third day of each month.

2. Provincial branches of the State Bank of Vietnam where the credit institution has its main office have the responsibility to:

a. Report the average balance of deposits of the credit institution at the provincial branch of the State Bank of Vietnam during the "reserve maintenance period" to the State Bank of Vietnam's Trading Department on the fourth day of each month.

b. Based on the report of the "average balance of deposits collected" during the "reserve determination period" from the credit institution managed by the provincial branch of the State Bank of Vietnam, conduct verification, calculation, and notify the mandatory reserve amount for the "reserve maintenance period" to the credit institution and the State Bank of Vietnam's Trading Department on the fifth day of each month.

a. Handle excess or shortage of mandatory reserves in the "reserve maintenance period" based on the consolidation of the average balance of deposits on two accounts of the credit institution:

An account for demand deposits at the State Bank of Vietnam's Trading Department or its provincial branch where the credit institution has its main office.

3. The State Bank of Vietnam's Trading Department shall be responsible for:

An account for demand deposits at the State Bank of Vietnam's Trading Department for participation in inter-bank electronic payments.

b. Compile and report the compliance with mandatory reserves of credit institutions and send it to the Department of Banks and Non-Bank Financial Institutions on the sixth day of each month.

4. The Banking Information Technology Department has the responsibility to establish, install, and guide the operation of programs for State Bank of Vietnam units and provincial branches of the State Bank of Vietnam where credit institutions participating in inter-bank electronic payments have their main offices to implement information transmission, consolidation, reporting, and calculation of mandatory reserves for credit institutions.

Reports are sent in writing and transmitted through the computer network.

Other provisions regarding mandatory reserves shall be implemented according to current regulations of the Governor of the State Bank of Vietnam.

This Decision shall take effect from the July 2002 reserve maintenance period.

Article 3. The Head of the Office of the State Bank of Vietnam, Heads of units under the State Bank of Vietnam, Directors of provincial branches of the State Bank of Vietnam directly under the central government, Chairmen of the Board of Management and General Managers (Directors) of credit institutions participating in inter-bank electronic payments are responsible for enforcing this Decision./.

Article 4. Other provisions regarding mandatory reserves shall be implemented in accordance with the current regulations of the Governor of the State Bank of Vietnam.

Article 5. This Decision shall take effect from the July 2002 mandatory reserve maintenance period.

Article 6. The Head of the Office of the State Bank of Vietnam, Heads of units under the State Bank of Vietnam, Governors of provincial and centrally-administered city branches of the State Bank of Vietnam, Chairmen of Management Boards and General Directors (Directors) of credit organizations participating in inter-bank electronic payment systems are responsible for implementing this Decision./.