Amendments to regulations on the forms of deposits eligible for premature withdrawal in Vietnam

Amendments to regulations on the forms of deposits eligible for premature withdrawal in Vietnam

Article 1 of Circular 47/2024/TT-NHNN amends Clause 3, Article 3 of Circular 04/2022/TT-NHNN on forms of deposits eligible for premature withdrawal in Vietnam.

Forms of deposits eligible for premature withdrawal in Vietnam include:

- Time savings deposits.

- Time deposits.

- Certificates of deposit issued by credit institutions. (The current regulation stipulates: Deposit certificates, bills, treasury bills, and bonds issued by credit institutions)

- Other forms of time deposits as prescribed by the Law on Credit Institutions.

Additionally, according to Article 4 of the Law on Credit Institutions 2024, a credit institution is a legal entity that conducts one, several, or all banking activities as prescribed by the Law on Credit Institutions 2024. Credit institutions include:

- Banks, which are credit institutions that may conduct all banking activities as prescribed by the Law on Credit Institutions 2024. Types of banks include commercial banks, policy banks, cooperative banks.

- Non-bank credit institutions, which are credit institutions authorized to conduct one or several banking activities as prescribed by the Law on Credit Institutions 2024, except for receiving deposits from individuals and providing payment services through customer accounts. Types of non-bank credit institutions include general finance companies and specialized finance companies.

- Microfinance institutions, which are credit institutions mainly conducting one or several banking activities to meet the needs of low-income individuals, households, and micro-enterprises.

- People's credit funds, which are credit institutions voluntarily established by legal entities, individuals, and households in the form of cooperatives to conduct one or several banking activities as prescribed by the Law on Credit Institutions 2024 with the main objective of mutual support for the development of production, business, and living standards.

More details can be found in Circular 47/2024/TT-NHNN, which comes into force in Vietnam from November 20, 2024.

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