Compilation of State Treasury Account Openings from November 1, 2019

Account of the State Treasury (hereinafter referred to as KBNN) opened at the State Bank of Vietnam (hereinafter referred to as NHNN) and commercial banks (hereinafter referred to as NHTM) to conduct state budget revenues and expenditures.

To be specific: the place where state treasury accounts are opened is compiled in Article 4 of Circular 58/2019/TT-BTC as follows:

Illustration (source: internet)

First: For the Central State Treasury:

- Open aggregate payment accounts in Vietnamese dong (hereinafter referred to as VND) and foreign currency at the NHNN Transaction Office.- Open aggregate payment accounts (in VND and foreign currency) at the headquarters of NHTM systems that have implemented electronic bilateral payments with KBNN.- Open aggregate specialized collection accounts in VND at the headquarters of NHTM systems that have implemented electronic bilateral payments with KBNN (for NHTM systems that only perform state budget collection).

Second: For KBNN Transaction Office:

- Open payment accounts in VND at the headquarters or branches of NHTM systems that have implemented electronic bilateral payments with KBNN.- Open payment accounts in foreign currency at the headquarters or branches of NHTM systems that have implemented electronic bilateral payments in foreign currency with KBNN.

Third: For Provincial State Treasuries:

- Open one payment account in VND at a branch of NHTM in the same province, which is part of a NHTM system that has implemented electronic bilateral payments with KBNN.- For provincial KBNN located in areas with foreign currency state budget revenue and expenditure transactions, open a foreign currency payment account at a branch of NHTM licensed to conduct, provide foreign exchange services in the domestic market in the same province, which is part of an NHTM system that has implemented electronic bilateral payments in foreign currency with KBNN.- Open specialized collection accounts in VND at branches of NHTM in the same province, which is part of NHTM systems that have implemented electronic bilateral payments with KBNN (excluding branches of NHTM belonging to the same NHTM system where the provincial KBNN has opened a payment account).

Fourth: For District State Treasuries:

- Open one payment account in VND at a branch or transaction office of NHTM, at a location convenient for transactions and which is part of an NHTM system that has implemented electronic bilateral payments with KBNN.- Open specialized collection accounts in VND at branches or transaction offices of NHTM, at locations convenient for transactions and which are part of NHTM systems that have implemented electronic bilateral payments with KBNN (excluding branches, transaction offices of NHTM belonging to the same NHTM system as the branch, transaction office where the district KBNN has opened a payment account).

Additionally, the KBNN’s choice of the NHTM system to open specialized collection accounts must meet the following criteria:

- Have a high safety level according to NHNN Vietnam’s rating as stipulated in Clause 3 Article 14 Decree 24/2016/ND-CP regulating state treasury management policies in 03 consecutive years up to the selection time.- Have a Core Banking system located in Vietnam.- The bank’s IT system must meet the requirements for connecting and exchanging electronic bilateral payment information with KBNN, ensuring connection standards as per Central KBNN requirements; must have functions for collecting and submitting the state budget at the counter and submitting the state budget through electronic transaction channels.- Have state budget collection software integrated with Core Banking and capable of connecting, exchanging information with the State Budget Modernization Project under the Ministry of Finance.- Have a declaration of commitment with adequate equipment, technical infrastructure, and human resources to meet the requirements for implementing electronic bilateral payments and organizing coordinated state budget collection with KBNN.- Coordinate with KBNN to develop an agreement on the process of organizing coordinated state budget collection and electronic bilateral payment; simultaneously, commit to fully comply with the principles, processes, and responsibilities outlined in the agreement between the two parties.

See more related regulations at Circular 58/2019/TT-BTC which took effect from November 01, 2019.

Thu Ba

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