What conditions must individuals meet to become members of the People's Credit Fund? What is the capital contribution requirement to establish membership in the People's Credit Fund?
Individual Requirements to Become a Member of the People's Credit Fund
What conditions must an individual meet to become a member of the People's Credit Fund? What is the minimum capital contribution needed to establish membership in the People's Credit Fund?What is a People's Credit Fund?
Article 30, Clause 4, of the Law on Credit Institutions 2024 stipulates as follows:
Article 4. Interpretation of terms
In this Law, the following terms shall be construed as follows:...
30. People's Credit Fund is a credit institution voluntarily established by legal entities, individuals, and households in the form of a cooperative to carry out one or several banking activities in accordance with the provisions of this Law with the primary aim of mutual assistance in developing production, business, and livelihood.
...
The People's Credit Fund is a credit institution voluntarily established by legal entities, individuals, and households in the form of a cooperative to carry out one or several banking activities in accordance with the provisions of this Law with the primary aim of mutual assistance in developing production, business, and livelihood.
What conditions must an individual meet to become a member of the People's Credit Fund?
Article 1, Clause 8, of Circular 29/2024/TT-NHNN stipulates the conditions to become a member as follows:
Conditions to become a member
1. For individuals:
a) Vietnamese citizens aged 18 years or older, with full civil act capacity, registered permanent residence or temporary residence in the operation area of the People's Credit Fund. In the case of temporary residence registration, the individual must be engaged in production, business activities, or be a worker on the operational area of the People's Credit Fund and must provide documentation to prove this;
b) Officials and public employees working at organizations and agencies headquartered in the operational area of the People's Credit Fund;
c) Not currently being prosecuted for criminal liability, not serving a prison sentence; not undergoing administrative measures at mandatory rehabilitation centers, mandatory educational institutions; not prohibited by the court from holding certain positions, practicing certain professions, or performing certain jobs; individuals convicted of serious crimes or higher who have not had their criminal records expunged.
- For households:
a) Households with members permanently residing in the operating area of the People's Credit Fund; household members share assets to serve the family's production and business activities;
b) Household members must designate a household member to represent and exercise the rights and obligations of a member of the People's Credit Fund. The representative must be authorized in writing by the household members according to the law and must meet the conditions stipulated in Clause 1 of this Article.
...
Thus, an individual must meet the following conditions to become a member of the People's Credit Fund:
- Vietnamese citizens aged 18 years or older, with full civil act capacity, registered permanent residence or temporary residence in the operational area of the People's Credit Fund. In the case of temporary residence registration, the individual must be engaged in production, business activities, or be a worker on the operational area of the People's Credit Fund and must provide documentation to prove this;
- Officials and public employees working at organizations and agencies headquartered in the operational area of the People's Credit Fund;
- Not currently being prosecuted for criminal liability, not serving a prison sentence; not undergoing administrative measures at mandatory rehabilitation centers, mandatory educational institutions; not prohibited by the court from holding certain positions, practicing certain professions, or performing certain jobs; individuals convicted of serious crimes or higher who have not had their criminal records expunged.
Conditions for individuals to become a member of the People's Credit Fund? What is the minimum contribution amount to establish membership of the People's Credit Fund? (Image from the Internet)
When does a member of the People's Credit Fund lose their membership status?
Article 9, Clause 1, of Circular 29/2024/TT-NHNN stipulates the termination of membership as follows:
Termination of membership
- A member loses their membership in the People's Credit Fund in the following cases:
a) Automatic loss of membership:
(i) Individual member dies or is missing;
(ii) Legal entity member ceases to exist;
(iii) Member no longer meets the conditions to become a member as stipulated in Article 8 of this Circular, except for the case stipulated in point c(i) of this Clause;
(iv) Member has transferred all their contributions to others according to the laws and the People's Credit Fund Charter;
b) Voluntary case: Member voluntarily leaves and is approved by the Board of Directors of the People's Credit Fund;
c) Expulsion case: Member is expelled from the People's Credit Fund by the General Meeting of Members due to:
(i) Insufficient contribution according to Clause 1 of Article 10 of this Circular;
(ii) Acts of falsification or fraud in membership documents;
(iii) Other cases according to the Charter of the People's Credit Fund.
...
Thus, a member of the People's Credit Fund loses their membership status in the following cases:
[1] Automatic loss of membership:
- Individual member dies or is missing;
- Legal entity member ceases to exist;
- Member no longer meets the conditions to become a member as stipulated in Article 8 of Circular 29/2024/TT-NHNN, except for the case stipulated in point c(i), Clause 1, Article 9 of Circular 29/2024/TT-NHNN;
- Member has transferred all their contributions to others according to the laws and the Charter of the People's Credit Fund;
[2] Voluntary case: Member voluntarily leaves and is approved by the Board of Directors of the People's Credit Fund;
[3] Expulsion case: Member is expelled from the People's Credit Fund by the General Meeting of Members due to:
- Insufficient contribution according to Clause 1, Article 10 of Circular 29/2024/TT-NHNN;
- Acts of falsification or fraud in membership documents;
- Other cases according to the Charter of the People's Credit Fund.
What is the minimum contribution amount to establish membership of the People's Credit Fund?
According to Article 10, Circular 29/2024/TT-NHNN stipulates the member contributions:
Member contributions
- Member contributions include the initial contribution to establish membership and supplementary contributions:
a) The minimum contribution to establish membership is 300,000 VND and is stipulated in the Charter;
b) Supplementary contributions are made according to the Charter.
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Thus, the minimum contribution amount to establish membership in the People's Credit Fund is 300,000 VND and is stipulated in the Charter.
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