Regulations on direct credit service in Vietnam from July 1, 2024

Regulations on direct credit service in Vietnam from July 1, 2024 (Internet image)

On June 28, 2024, the Governor of the State Bank of Vietnam issued Circular 15/2024/TT-NHNN on provision of cashless payment in Vietnam.

Regulations on direct credit service in Vietnam from July 1, 2024

According to Article 8 of Circular 15/2024/TT-NHNN, banks providing direct credit service must ensure quick, strict, accurate, safe, and confidential processing in compliance with the law; establish internal processes which must include the following contents:

* Producing and sending direct credit documents

The payer prepares a payment order and sends it to their serving bank (where the payment account is opened) to debit the account and transfer to the beneficiary. The bank guides customers on how to prepare and send direct credit documents at their unit, ensuring compliance with the regulations of Circular 15/2024/TT-NHNN and current regulations of the State Bank of Vietnam.

* Controlling direct credit documents

- Upon receiving the payment order, the bank must strictly control to ensure the legality and validity of the document.

- The bank must check the payment capability. If the payment order is not legal, valid or is not ensured for payment capability, the bank notifies the payer to correct, supplement or return it to the payer.

* Handling documents and accounting

- At the bank serving the payer:

After control, if the payment order is legal, valid, and ensured for payment capability, it is processed as follows:

+ If both the beneficiary and the payer have payment accounts at the same bank, no later than 01 business day from the receipt of the payment order from the customer (unless otherwise agreed), the bank accounts for the payment order into the payer's, beneficiary's payment accounts, and debits the payer's account, credits the beneficiary's account.

+ If the beneficiary does not have a payment account at the bank serving the payer, no later than 01 business day from the receipt of the payment order from the customer (unless otherwise agreed), the bank accounts for the payment order into the payer's payment account, debits the payer's account, and sends a money transfer order to the bank serving the beneficiary through the appropriate payment system.

- At the bank serving the beneficiary:

Upon receiving the money transfer order from the bank serving the payer, the bank serving the beneficiary controls and processes the documents as follows:

+ If the money transfer order is legal and valid, no later than 01 business day from the receipt of the money transfer order, the bank serving the beneficiary must account for the payment order into the beneficiary's payment account and credits the beneficiary's account.

+ If the money transfer order has errors, no later than 01 business day from the receipt of the money transfer order, the bank serving the beneficiary sends a dispute request or returns the money transfer order to the bank serving the payer. Upon receiving the dispute resolution response, within a maximum of 01 business day, the bank serving the beneficiary processes the money transfer order or returns the money transfer order to the bank serving the payer.

+ If the beneficiary's account has been closed, no later than 01 business day from the receipt of the money transfer order, the bank serving the beneficiary returns the money transfer order to the bank serving the payer (or as agreed with the payer).

+ In case the beneficiary does not have a payment account at the bank:

Upon receiving the money transfer order, no later than 01 business day, the bank controls the documents, accounts for it in the appropriate account and informs the beneficiary based on the contact information provided by the payer. In case the beneficiary receives cash, the handling process is as follows:

If the beneficiary is an individual, when receiving the money, the beneficiary must present their personal identification documents. If an authorized person receives the money, they must present the authorization document in accordance with the law. If the beneficiary is an organization, the representative of the organization must present their personal identification documents and documents proving their legitimate representative status. The bank has measures to verify, compare, authenticate customer identity information, and store it in accordance with the law.

Within a maximum of 30 days from the credit notification to the customer as stipulated in Clause 4, Article 8 of Circular 15/2024/TT-NHNN, if the beneficiary has been informed by the bank but does not come to receive the money or the bank cannot contact the beneficiary, the bank must issue a money return order to the bank serving the payer.

* The bank performs debt and credit notifications fully, promptly for customers according to the agreed method and timing between the bank and the customer in accordance with the law.

More details can be found in Circular 15/2024/TT-NHNN, which comes into force in Vietnam from July 1, 2024, except as provided in Clause 2, Article 22 of Circular 15/2024/TT-NHNN.

To Quoc Trinh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE