What are procedures for granting the license for establishment of the People's Credit Fund in Vietnam?

What are procedures for granting the license for establishment of the People's Credit Fund in Vietnam?

Pursuant to Section 1 Part II (Administrative procedures that are amended and supplemented regarding the field of banking establishment and operation under the management functions of the State bank of Vietnam) issued together with the Decision 258/QĐ-NHNN in 2023 stipulating procedures for granting the license for establishment of the People's Credit Fund in Vietnam as follows:

Procedures for issuance of license for establishment of the People's Credit Fund

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b) Licensing:

- Step 1: Within 05 working days from the date of receipt of the prescribed documents, the State Bank branch shall certify in writing that it has received all valid documents or request the personal credit fund People supplement and complete the application file for the License;

- Step 2: Within 60 days from the date of receipt of complete and valid documents as prescribed, the State Bank branch shall issue the License; in case of refusal to grant the License, the State Bank's branch shall send a written explanation clearly stating the reason.

As regulations above, the issuance of the license for establishment of the People's Credit Fund includes the following steps:

Step 1: Within 05 working days from the date of receipt of the prescribed documents, the State Bank branch shall certify in writing that it has received all valid documents or request the people's credit fund. supplement and complete the application file for a license;

Step 2: Within 60 days from the date of receipt of complete and valid documents as prescribed, the State Bank branch shall issue the License; in case of refusal to grant the License, the State Bank's branch shall send a written explanation clearly stating the reason.

What are procedures for approving the establishment of a people's credit fund in Vietnam?

Pursuant to Section 1 Part II (Administrative procedures that are amended and supplemented regarding the field of banking establishment and operation under the management functions of the State bank of Vietnam) issued together with the Decision 258/QĐ-NHNN in 2023 stipulating procedures for approving the establishment of a people's credit fund in Vietnam as follows:

Step 1: The Preparatory Board compiles a dossier of application for a License in accordance with regulations and sends it to the branch of the State Bank in the province or city in the area.

Step 2: Within 10 working days from the date of receipt of the prescribed dossier, the State Bank's branch shall send a written notice to the Preparatory Board confirming receipt of the complete and valid dossier or request for supplementation or refund. profile improvement.

Step 3: Within 10 working days from the date of receipt of complete and valid documents as prescribed, the State Bank branch:

+ Send a written request to the People's Committee of the commune where the people's credit fund is expected to be headquartered on the establishment of the people's credit fund in the locality;

The list of personnel to be elected or appointed as the Chairman and other members of the Board of Directors, the Head and other members of the Control Board, and the Director of the people's credit fund;

+ Send a document to the Vietnam cooperative bank on the list of personnel expected to be elected and appointed as Chairman and other members of the Board of Directors, Head and other members of the Supervisory Board, Director the director of the people's credit fund (if necessary);

Step 4: Within 10 working days from the date of receiving the written request of the State Bank branch:

+ The People's Committee of the commune where the people's credit fund is expected to be headquartered, the cooperative bank of Vietnam shall provide written comments on the proposed contents.

+ Past the above time limit, if it does not receive written comments from the units, the State Bank branch shall determine that the unit to be consulted has no objection.

Step 5: Within 30 days from the date of receiving the opinion of the Commune People's Committee:

+ Vietnam Cooperative Bank or from the date of expiration of the time limit for sending comments without receiving any comments,

+ The State Bank's branch shall send a written request to the Preparatory Board approving the principles of establishment of a people's credit fund and approving the list of personnel to be elected and appointed as the Chairman and other members of the Board of Directors. Chairman, Head and other members of the Supervisory Board, Director of the people's credit fund.

In case of disapproval, the State Bank branch shall send a document to the Preparatory Board, clearly stating the reason.

Step 6: Within 90 days from the date of receipt of the State Bank branch's written approval in principle:

The Preparatory Board shall organize the congress to establish and compile a dossier of application for a license in accordance with regulations and send it to the branch of the State Bank.

Past the aforesaid time limit, if the State Bank branch does not receive or receives incompletely the above documents, the written approval in principle is no longer valid.

What is the fee for granting the license for establishment of the People's Credit Fund in Vietnam?

Pursuant to Section 1 Part II (Administrative procedures that are amended and supplemented regarding the field of banking establishment and operation under the management functions of the State bank of Vietnam) issued together with the Decision 258/QĐ-NHNN in 2023 stipulating the fee for granting the license for establishment of the People's Credit Fund in Vietnam as follows:

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Documents proving the legal ownership or right to use the location of the head office.

- Number of dossiers: 01 (one) set

- Processing time: 180 days

- Subjects carrying out administrative procedures: People's Credit Fund.

- Agencies carrying out administrative procedures: State Bank branches in provinces and cities.

- Results of administrative procedures: License for establishment and operation of the People's Credit Fund.

- Fee: 200,000 VND.

According to the above regulations, the fee for carrying out the procedures for grantingthe license for establishment of the People's Credit Fund in Vietnam is 200,000 VND.

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