Vietnam: What is a cheque? Procedures for registration of blank cheque templates

Vietnam: What is a cheque? Procedures for registration of blank cheque templates

1. What is a cheque?

According to Clause 1, Article 3 of Circular 22/2015/TT-NHNN,  “cheque” means a financial instrument made by a drawer, which orders a drawee to pay a specific amount of money from the drawer's account to the payee.

2. Contents on the cheque

According to Article 6 of Circular 22/2015/TT-NHNN, the contents of the cheque are specified in Article 58 of the Law on Transferable Instruments 2005 including:

(1) The following items shall appear on the front of a cheque:

- The word "Cheque" printed on the top of the cheque;

- A fixed amount of money;

- The name of a bank or of an organization providing payment services being the drawee;

- The name of the beneficiary being an organization or the full name in the case of the beneficiary being an individual who is designated by the drawer or in favour of whom [the drawer] has made the request for payment of the cheque to the order of the beneficiary or the request for payment of the cheque to the bearer3 .

- The place for payment;

- The date of drawing;

- The name of the drawer being an organization or the full name in the case of the drawer being an individual, and the address and signature of the drawer.

(2) A cheque which omits any one of the contents stipulated in clause 1 of this article shall be invalid, except that where the place for payment is not recorded in the cheque, the cheque shall be paid at the business place of the drawee.

(3) Organizations supplying cheques may print other items in addition to those stipulated in clause 1 of this article provided that they do not give rise to additional legal obligations of the parties, such as number of the bank account which the drawer may use to draw the cheque, address of the drawer, address of the drawee and other items.

(4) Any cheque paid via a cheque clearing centre must also contain other items in accordance with the regulations of the cheque clearing centre.

(5) The back of a cheque shall be reserved for details regarding any endorsement.

(6) The sum of money written in figures must be equal to those written in words on a cheque.

If the sum written in figures is different from the sum written in words, the cheque shall be invalid for payment.

3. Blank cheque templates in Vietnam

The blank cheque form is specified in Article 9 of Circular 22/2015/TT-NHNN as follows:

- The cheque-providing organization shall decide on its own the design of blank cheque samples provided by them according to the provisions of Articles 58 and 59 of the Law on Transferable Instruments 2005 as follows:

+ Content of cheques according to item 2;

+ Cheque size:

++ Cheque size and placement of contents on the cheque are designed and implemented by the cheque-providing organization, except in the case of a cheque clearing center.

++ For cheques paid through the cheque clearing center, the cheque clearing center must specify the size, content, and position of the contents on the cheque.

- To ensure that the cheque is paid through the cheque clearing center, the Cheque paper, Cheque size, elements, and position of elements on blank cheques must be designed according to Appendix 01a and Appendix 01b, attached to Circular 22/2015/TT-NHNN.

	Appendix 01a
	Appendix 01b

4. Procedures for registration of blank cheque templates in Vietnam

The procedures for the registration of blank Cheque samples according to Article 10 of Circular 22/2015/TT-NHNN are as follows:

- Commercial banks, policy banks, cooperative banks, and foreign bank branches, before printing blank cheques to supply customers, must register blank cheque samples at the State Bank of Vietnam.

The cheque-providing organization shall submit directly or by post to the State Bank (Payment Department) one set of application documents for registration of blank Cheque samples, including:

+ Application form for registration of blank cheque form according to Appendix 08 attached to Circular 22/2015/TT-NHNN;

Appendix 08

+ The design of the blank Cheque, including size, color, and detailed elements of the blank Cheque;

+ A copy from the original book or a certified copy, or submit an uncertified copy, present with the original for comparison, the Chequeing organization's operation license (in the case of the first registration), or an uncertified copy certified for the second registration and on.

Within 5 working days from the date of receipt of complete and valid dossiers, the State Bank shall issue a written certification of the registration of blank cheque samples by the cheque-providing organization.

Quoc Dat

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