New regulations on using checking accounts opened at the State Bank of Vietnam

New regulations on using checking accounts opened at the State Bank of Vietnam (Internet image)

On June 28, 2024, the Governor of the State Bank of Vietnam issued Circular 17/2024/TT-NHNN providing guidelines for opening and use of checking accounts at payment service providers in Vietnam.

New regulations on using checking accounts opened at the State Bank of Vietnam

(1) Open pchecking accounts at the State Bank of Vietnam are used for deposits, cash withdrawals, cheque issuance, accounting, tracking, and executing payment orders through payment systems organized and operated by the State Bank, single transaction payments via pchecking accounts, and other payment services offered by the State Bank of Vietnam.

(2) Pchecking accounts of credit institutions and foreign bank branches opened at the State Bank Transaction Office are used for payment transactions when participating in open market operations, trading transferable instruments, government bonds, treasury bills, State Bank bills, and other activities as prescribed by law.

(3) The State Bank Transaction Office and the State Bank branches have the following rights and responsibilities:

• Proactively deduct (debit) the pchecking account of customers in the following cases:

  • Collect due and overdue debts, interest, and fees arising during the management of pchecking accounts and the provision of payment services as stipulated by the State Bank;

  • Adjust mis-accounted items, accounts recorded inaccurately, or not corresponding to the nature of the pchecking account as prescribed by law;

  • When it is discovered that the account has been mistakenly credited or per the request for cancellation/refund of the credit transfer order by the payment service provider serving the remitter due to errors detected by the payment service provider transferring the money compared to the remitter's payment order;

  • Upon written request from competent authorities in enforcing administrative penalty decisions, execution decisions, tax collection decisions, or other payment obligations as prescribed by law.

• Refuse to execute the account holder's payment order in the following cases:

  • The payment order is illegal or invalid;

  • The account holder does not fully comply with payment procedures, and the payment order does not match the registered elements in the pchecking account opening dossier at the State Bank;

  • The pchecking account does not have sufficient balance;

  • When there is a written request from a competent authority as stipulated by law;

• Maintain and promptly update all necessary documents, information, and data in the pchecking account opening dossier, including signature samples, and seal samples (if any) of the account-opening organization for verification, during the use of the pchecking account;

• Provide information on payment transactions and balances on pchecking accounts to account-opening organizations at the State Bank for verification and reconciliation.

(4) The State Treasury, credit institutions, and foreign bank branches opening pchecking accounts at the State Bank have the following rights and responsibilities:

• Use the balance on their pchecking accounts to execute lawful and valid payment orders;

• Choose to use payment instruments, services, and facilities provided by the State Bank;

• Require the State Bank Transaction Office or the State Bank branch where the pchecking account is opened to execute lawful and valid payment orders and to provide information on payment transactions and balances on their pchecking accounts.

• Provide complete, accurate, and timely documents, information, and data during the pchecking account opening process, as well as other information requested by the State Bank Transaction Office or the State Bank branch where the pchecking account is opened;

• The State Treasury, credit institutions, and foreign bank branches must inform the State Bank Transaction Office or the State Bank branch where the pchecking account is opened about any changes to account information using Form 01 attached to Circular 17/2024/TT-NHNN;

• Be responsible for any risks arising from providing, updating incomplete, inaccurate, untimely information, and for any damages caused by their mistakes.

(Article 9 Circular 17/2024/TT-NHNN)

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