This is the content mentioned in the Draft Circular guiding savings deposit transactions (referred to as the Draft) issued by the State Bank of Vietnam.
Article table of contents
Draft guiding savings deposit transactions in Vietnamese Dong and foreign currencies between credit institutions, foreign bank branches and individuals. Compared to Decision 1160/2004/QD-NHNN, the Draft stipulates in more detail and specificity about objects receiving savings deposits and making savings deposits as follows:
- Objects receiving savings deposits are credit institutions, foreign bank branches (excluding non-bank credit institutions) established and operating in Vietnam according to the Law on Credit Institutions; Policy banks are allowed to receive savings deposits as per the regulations of the Government of Vietnam on the organization and operation of policy banks and the provisions of this Circular; Microfinance organizations receive savings deposits according to the regulations on the organization and operation of microfinance organizations and the provisions of this Circular.- Objects making savings deposits are residents who are Vietnamese citizens conducting savings deposit transactions in Vietnamese Dong and foreign currencies in accordance with the provisions of law.
Accordingly, persons conducting savings deposit transactions are identified according to age and legal capacity:
- Individuals 18 years of age or older with full civil legal capacity as prescribed by Vietnamese law;- Individuals from full 15 years old to under 18 years old not restricted in civil legal capacity are entitled to independently perform civil transactions as prescribed by the Civil Code;- Individuals under 15 years old, persons with no legal capacity, persons with difficulties in perception and behavior control, persons with restricted legal capacity as prescribed by Vietnamese law perform savings deposit transactions through their legal representatives.
The noteworthy point in the Draft is the provision on transactions related to savings deposits. In Decision 1160/2004/QD-NHNN, savings deposit accounts are allowed to be used in case of transferring to pay debts of the actual savings deposit owners or joint savings deposit owners at the savings deposit-receiving organization; or transferring to other accounts owned by the savings deposit owners or joint savings deposit owners at the same savings deposit-receiving organization.
However, the Draft has eliminated this case and unified the provision that savings deposits are not allowed to be used to issue checks or perform payment transactions under any circumstances.
Additionally, the Draft has also introduced new provisions to create conditions for enterprises to maintain and operate, which is the use of savings deposits as collateral assets in secured transactions. When using savings deposits as collateral, customers have the right to agree that if the debt is due and cannot be repaid, the customers' savings deposits will be used to pay the due obligations. In savings deposit transactions related to authorization, inheritance, or transfer of ownership, the credit institution will guide customers on how to perform authorization, inheritance, or transfer of ownership transactions according to the law.
Currently, the Draft is open for public comments on the Government of Vietnam's electronic information portal.
