3 principles for managing the balance of the State Treasury’s account at the bank

According to the provisions of Article 5 Circular 58/2019/TT-BTC, the management of balances on the accounts of the State Treasury (KBNN) at banks must adhere to the following principles:

Illustrative image (source: Internet)

First: For payment accounts and special revenue accounts of the State Treasury Transaction Office, provincial State Treasuries, and district State Treasuries at commercial banks (NHTM), by the end of the trading day, after successful reconciliation with the commercial bank, the entire balance on these accounts at COT is transferred back to the central State Treasury's consolidated payment account or consolidated special revenue account at the same commercial bank system (hereinafter abbreviated as NHTM), ensuring these accounts have a zero balance (except for revenues arising on these accounts after COT). In cases of force majeure events that cannot be resolved on the day, the reconciliation and transfer will be carried out the following business day.

The term "cut off time," abbreviated as COT, is understood as the time to temporarily stop transmitting and receiving payment documents to reconcile payment data of the day between the State Treasury and the bank.

Second: For the central State Treasury's consolidated payment accounts and consolidated special revenue accounts at NHTM, by the end of the trading day, after receiving settlement figures from payment accounts and special revenue accounts, the entire balance on these accounts is transferred to the central State Treasury's consolidated payment account at the State Bank of Vietnam Transaction Office, ensuring these accounts have a zero balance (except for consolidated payment accounts in foreign currencies which the State Bank of Vietnam has not opened an account yet). In cases of force majeure events that cannot be resolved on the day, the transfer will be carried out the following business day.

In which:

- Consolidated payment account: An on-demand deposit account of the central State Treasury at NHTM and the State Bank of Vietnam, used to centralize balances from payment accounts, special revenue accounts within the same banking system or from other consolidated payment accounts (if any).- Consolidated special revenue account: An on-demand deposit account of the central State Treasury at NHTM, used to centralize balances from special revenue accounts within the same NHTM system.- Payment account: An on-demand deposit account of State Treasury units (State Treasury Transaction Office, provincial State Treasuries, district State Treasuries) at NHTM, used to centralize revenues and make disbursements from the state budget.- Special revenue account: An on-demand deposit account of provincial and district State Treasuries at NHTM, used to centralize state budget revenues.

Third: The central State Treasury's consolidated payment account opened at the State Bank of Vietnam Transaction Office always has a debt balance at the end of the day.

Refer to related regulations in Circular 58/2019/TT-BTC effective from November 1, 2019.

Thu Ba

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