The State Bank of Vietnam promulgated the Circular on savings deposits

15:13-12/04/2019

On December 31, 2018, the State Bank of Vietnam (the SBV) promulgated the Circular No. 48/2018/TT-NHNN on savings deposits, replacing the Decision 1160/2004/QD-NHNN dated  September 13, 2004 on the issuance of the Regulation on savings deposits and the Decision No. 47/2006/QD-NHNN dated September 25, 2006 on amending and supplementing a number of articles of the Regulation on saving deposits, issued together with the State Bank Governor’s Decision No. 1160/QD-NHNN dated September 13, 2004.

This Circular stipulated savings deposits at credit institutions which are established and operate under the Credit Institution Law (commercial banks, cooperative banks, microfinance financial institutions, People’s credit funds, foreign banks’ branches) and depositors.

According to the Circular, savings deposits are classified by terms of deposits (including demand deposits, time deposits); specific terms of deposits and some other criteria are determined by credit institutions. Credit institutions specifically stipulated forms of savings deposits in accordance with the Circular and other applicable laws, ensuring safety of depositors’ money and operational prudence of credit institutions. Credit institutions’ internal regulations on forms of savings deposits must at least stipulate: methods of interest payment, method of interest calculation, extending terms of deposit, early withdrawing savings deposits, cases where depositors must inform the credit institutions of early withdrawing savings deposits in advance.

A savings card, which confirms a depositor’s ownership of a savings deposit at a credit institution, is provided for the depositor in case of the savings deposit received at the credit institution's legal transaction offices.

 Savings cards must have at least the following contents: name of credit institutions, seal; name, signature of tellers and legal representative of credit institutions; name, number and date of granting  the documents which verify information of depositors or all depositors (co-owners of savings deposit) and information of legal representatives of depositors when depositing their money through their representatives; number of saving cards; amount of money; currency; date of depositing; maturity date (for time savings deposits); term of deposit; interest rate; method of interest payment; measure for depositors to search for information on savings deposits ; handling of cases where savings cards are crumpled, torn or lost. Besides, saving cards can consist of other contents as regulated by credit institutions.

Interest rates and the method of interest calculation for savings deposits are in accordance with the SBV’s regulations on interest rates. The method for payment of interest for savings deposits can be agreed between the credit institution and the depositor.

The Circular stipulates that the currencies for receipt of savings deposits consist of Vietnamese dong and foreign currencies. Credit institutions determine foreign currencies for receipt of savings deposits. The currency for payment of a savings deposit and the currency for receipt of the savings deposit must be the same. The payment for change foreign currency is made in accordance with provisions of the savings deposit receiving organization.

 For savings deposits in Vietnamese dong of the depositors who are resident Vietnamese citizens, the depositors and credit institutions are allowed to negotiate payment of principal, interest to checking accounts in Vietnamese dong of the depositors.

For savings deposits in Vietnamese dong deposited from the checking accounts of the non-resident Vietnamese citizens, the depositors and credit institutions are allowed to negotiate payment of principal equivalent to the deposited amount and corresponding interest to checking accounts in Vietnamese dong of the depositors.

For savings deposits in foreign currencies deposited from the checking accounts of the resident Vietnamese citizens, the depositors and credit institutions are allowed to negotiate payment of principal equivalent to the deposited amount and corresponding interest to checking accounts in foreign currencies of the depositors.

Regarding the procedures for depositing savings at transaction offices of credit institutions, depositors have to go directly to transactions offices at credit institutions and present documents to verify their information. In case of co-owners of savings deposits, all depositors must directly present the documents to verify their information.

In case of depositing savings through legal representatives, those legal representatives must present documents to verify their representative status, documents to verify information of the legal representatives themselves and documents to verify information of the depositors.

Depositors must register their specimen signatures in case of changes in specimen signatures or no specimen signatures recorded at credit institutions. Those depositors who are unable to write, read, see follow the guidelines of credit institutions.

The Circular also specifically stipulated use of savings deposits as collaterals, transfer of ownership of savings deposits, extension of terms of deposit, handling of risky cases (damaged, torn, lost saving cards…), early withdrawal of savings deposits …

With regard to the procedures of receiving, paying out savings deposits electronically, credit institutions provide guidelines on the procedures of receiving, paying out savings electronically through checking accounts of depositors at credit institutions. Credit institutions must ensure full archiving of the related information to meet customers’ demand in case of review, inspection and dispute resolution.

Based on the Law on Credit Institutions, the Circular No. 48 and related legal regulations, credit institutions promulgated internal regulations on savings deposit transactions in accordance with their management structure, characteristics, business conditions, making deposit transactions be correct, safe for the sake of depositors and credit institutions. The internal regulations must clearly provide for responsibilities and tasks of each division, individual related to savings deposit transactions.

Besides, the Circular also stipulated clearly that credit institutions have to list at their transaction offices and post on their websites (if possible) at least the following information: interest rates of savings deposits; levels of premiums (if possible); types of foreign currencies of savings deposits; procedures for savings deposit transactions between credit institutions and depositors; regulations on each type of saving deposits….

The Circular will take effect from July 7, 2019