Circular 17/2024/TT-NHNN stipulating the opening and use of payment accounts at payment service providing organizations.
Circular 17 of the State Bank regulating the opening and use of payment accounts at payment service providers?
On June 28, 2024, the Governor of the State Bank of Vietnam issued Circular 17/2024/TT-NHNN regulating the opening and use of payment accounts at payment service providers.
Circular 17/2024/TT-NHNN applies to the following subjects:
(1) Payment service providers eligible to open payment accounts include:
- The State Bank of Vietnam (hereinafter referred to as the State Bank);- Commercial banks, policy banks, cooperative banks (hereinafter referred to as banks);- Branches of foreign banks.
(2) Organizations and individuals opening payment accounts at payment service providers (hereinafter referred to as customers).
(3) Other organizations and individuals related to the opening and use of payment accounts at payment service providers.
Circular 17/2024/TT-NHNN regulating the opening and use of payment accounts at payment service providers? (Image from the Internet)
How is the balance in the payment account of customers opened at foreign banks calculated for interest?
Based on Article 4 of Circular 17/2024/TT-NHNN, regulations on interest payment for the balance in payment accounts are as follows:
Interest payment for the balance in payment accounts
The balance in the payment accounts of customers opened at banks and branches of foreign banks is calculated for interest according to the non-term deposit interest rate determined and publicly listed by the bank or branch of the foreign bank, in line with decisions made by the Governor of the State Bank from time to time.
The interest payment for the balance in payment accounts of customers opened at the State Bank is decided by the Governor of the State Bank from time to time.
Thus, the balance in the payment accounts of customers opened at banks and branches of foreign banks is calculated for interest according to the non-term deposit interest rate determined and publicly listed by the bank or branch of the foreign bank, in accordance with the decisions of the Governor of the State Bank from time to time.
Note: The interest payment for the balance in payment accounts of customers opened at the State Bank is decided by the Governor of the State Bank from time to time.
How is authorization in the use of payment accounts implemented?
Based on Article 5 of Circular 17/2024/TT-NHNN, regulations on authorization in the use of payment accounts are as follows:
Authorization in the use of payment accounts
- The holder of a payment account is allowed to authorize the use of the payment account. The authorization must be done in writing, complying with the legal provisions on authorization, and the following regulations:
a) For individual payment accounts: The account holder sends to the payment service provider where the account is opened, a written authorization along with documents, information, and data to verify recognition information for the individual or legal entity being authorized. Documents, information, and data for verifying recognition information for the authorized person are carried out according to the provisions of clauses 2 and 3, Article 12 of this Circular;
b) For organizational payment accounts: The account holder sends to the payment service provider where the account is opened, a written authorization by the legal representative of the organization or the authorized representative of the organization (hereinafter referred to as the legal representative), the chief accountant (or the person in charge of accounting) along with documents, information, and data to verify recognition information for the individual being authorized according to the provisions of clause 2, Article 12 of this Circular.
- The payment service provider must apply measures to verify recognition information for the authorized person according to the provisions of clause 2, Article 15 of this Circular.
Thus, the authorization must be done in writing, complying with the legal provisions on authorization, and the following regulations:
(1) For individual payment accounts:
- The account holder sends to the payment service provider where the account is opened, a written authorization along with documents, information, and data to verify recognition information for the individual or legal entity being authorized.
Documents, information, and data for verifying recognition information for the authorized person are carried out according to the provisions of clauses 2 and 3, Article 12 of Circular 17/2024/TT-NHNN.
(2) For organizational payment accounts:
- The account holder sends to the payment service provider where the account is opened, a written authorization by the legal representative of the organization or the authorized representative of the organization (hereinafter referred to as the legal representative), the chief accountant (or the person in charge of accounting) along with documents, information, and data to verify recognition information for the individual being authorized according to the provisions of clause 2, Article 12 of Circular 17/2024/TT-NHNN.
