Operations using blank bankbook of people's credit funds in Vietnam

Operations using blank bankbook of people's credit funds in Vietnam (Internet image)

Operations using blank bankbook of people's credit funds in Vietnam

people's credit fund is a credit institution established voluntarily by legal entities, individuals, and households in the form of a cooperative to perform one or several banking activities in accordance with the provisions of the Law on Credit Institutions 2024 with the primary aim of mutual support in production, business, and livelihood development (according to Clause 30, Article 4 of the Law on Credit Institutions 2024).

The activity of using blank bankbook of people's credit funds is stipulated in Article 25 of Circular 29/2024/TT-NHNN as follows:

(1) People's credit funds are only allowed to use blank bankbook according to the form issued and provided by cooperative banks to receive customers' savings deposits in accordance with Clause 1, Article 24 of Circular 29/2024/TT-NHNN (Receiving demand deposits, fixed-term deposits, member savings, and deposits from other organizations and individuals in Vietnamese dong).

(2) People's credit funds have the responsibility to:

- Develop internal regulations on the management and use of blank bankbook and send them to the branch of the State Bank within 10 days from the date of issuance, amendment, or supplementation. The internal regulations on the management and use of blank bankbook must at least include the following contents:

+ Specific procedures for the registration, management, and use of blank bankbook, ensuring tight control over the quantity and quality of blank bankbook during storage, handover, transfer, safeguarding, transportation, management, and use; monthly inventory and reconciliation; handling of lost or damaged blank bankbook. blank bankbook must be strictly managed like valuable papers and can only be stored at the headquarters of the people's credit fund;

+ The responsibilities of the Board of Directors, Chairman of the Board of Directors, Director (Deputy Director), Supervisory Board, and related individuals and departments in the management and use of blank bankbook; checking, reconciling, and handling lost or damaged blank bankbook;

+ Procedures for handling the responsibilities of individuals and departments involved in the management and use of blank bankbook and causing the loss of blank bankbook. Immediately after receiving the blank bankbook from the cooperative bank, the people's credit fund must stamp the seal between the customer's card and the retained card on all blank bankbook, or on the part of the blank savings book;

- Report immediately to the branch of the State Bank and the cooperative bank when the loss of a blank savings book is detected to have measures taken, and at the same time, post the list of lost blank bankbook specifying the series number of the book at the head office, transaction office, and the office of the People's Committee in the activity area of the people's credit fund;

- Publicly display the blank savings book form issued and provided by the cooperative bank at the head office, transaction office, and on the media of the commune or ward; facilitate customers who have deposited savings at the people's credit fund to compare with the blank savings book form and exchange the savings book according to the new form upon the customer's request;

- Monthly return unusable blank bankbook to the cooperative bank and open tracking records;

- By the 10th of each month or upon request, compile and report the use of blank bankbook for the previous month according to the form specified in Appendix No. 05, issued together with Circular 29/2024/TT-NHNN and send it to the branch of the State Bank.

Operations of people's credit funds in Vietnam

Article 126 of the Law on Credit Institutions 2024 stipulates the activities of people's credit funds include:

- people's credit funds receive deposits in Vietnamese dong.

- people's credit funds lend in Vietnamese dong.

- people's credit funds provide money transfer services, perform collection and payment services for members and customers of that people's credit fund, except for opening payment accounts for customers.

- Other business activities of people's credit funds include:

+ Receiving entrusted capital for lending from organizations and individuals;

+ Acting as payment service agents for cooperative banks for the members and customers of those people's credit funds;

+ Borrowing, depositing money at cooperative banks; borrowing from credit institutions, branches of foreign banks. People’s credit funds are not allowed to lend or deposit money to each other;

+ Participating in capital contribution at cooperative banks;

+ Opening payment accounts at the State Bank, commercial banks, cooperative banks, branches of foreign banks;

+ Acting as agents in some fields related to banking activities, asset safeguarding;

+ Acting as insurance agents according to the provisions of the law on insurance business, suitable with the scope of insurance agency activities according to the regulations of the Governor of the State Bank;

+ Advising members on banking activities and other business activities specified in the license.

Tran Trong Tin

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