On November 05, 2019, the State Bank of Vietnam issued Circular No. 19/2019/TT-NHNN on operating networks of microfinance institutions (MFI).
According to Circular No. 19/2019/TT-NHNN of the State Bank of Vietnam, the MFI shall decide and take responsibility for the opening or shutdown of a transaction point under the management of a branch or transaction office within the operating area of such branch or transaction office in accordance with the Regulation on management of operation in transaction points and regulations of this Circular. The opening or shutdown of a transaction point shall be notified to the People’s Committee of the commune where the transaction point operates within 05 working days from the date on which the MFI decides to open or shut down the transaction point.
The branch/transaction office of the MFI shall only perform one or some of the following activities at its transaction point:
- Do consumer surveys and referral marketing;
- Provide counsels and instructions on establishment of savings and borrowing clienteles;
- Provide clients with counsels and instructions about products, services and loan applications; receive loan applications; carry out loan disbursements and collect outstanding debts incurred from the credit contracts signed between the branch or transaction office and the client;
- Receive a compulsory saving deposit or voluntary saving deposit which is restricted to 1,000,000 dong/day from a microfinance client;
- Make payment on compulsory saving deposits and voluntary saving deposits of microfinance clients.
Besides, Circular No. 19/2019/TT-NHNN also stipulates that within 05 first working days of the first month of every quarter, the MFI or its branch shall send a notification containing the list of transaction points to the State Bank branch of the province or central-affiliated city where the MFI’s branch is located, whether by post or in person. The notification shall contain at least:
- A list of transaction points operating in the province or city until the last working day of the previous quarter, which includes information about name of the branch or transaction office in charge of managing operation of each transaction point and location where the transaction point operates;
- A list of transaction points opened and shut down during the previous quarter.
View other provisions at Circular No. 19/2019/TT-NHNN of the State Bank of Vietnam, effective from January 01, 2020.
Thu Ba
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