Issuance of the new Circular on people's credit funds in Vietnam

Issuance of the new Circular on people's credit funds in Vietnam

The regulations on people's credit funds in Vietnam are specified as follows:

* Duration of Operation

The duration of operation of the people's credit fund, as stated in the Establishment and Operation License (hereinafter referred to as the License), is a maximum of 50 years.

* Nature and Objectives of Operation

People's credit funds operate on the principles of voluntariness, autonomy, and self-responsibility for the results of their activities, with the primary objective of mutual support among members to effectively carry out production, business activities, and improve living standards.

* Name of the People's Credit Fund

- The name of the people's credit fund must be written in Vietnamese, may include numbers and symbols, must be pronounceable, and must have at least two components in the following order:

+ People's Credit Fund;

+ A proper name must be set in compliance with the law.

- The name of the people's credit fund must be displayed at its headquarters and dependent units. The name of the people's credit fund must be printed or written on transaction papers, files, and documents issued by the people's credit fund.

* Operational Area

- People's credit funds operate within the area of a commune, ward, or commune-level town (hereinafter collectively referred to as a commune). People's credit funds are not allowed to expand their operational area to another commune outside their headquarters, except in the cases specified in Clause 2 of this Article.

- People's credit funds are allowed to operate in the adjacent commune to the commune where the people's credit fund's headquarters is located within the scope of a province or centrally-run city due to the division or separation of administrative boundaries as decided by a competent state authority.

Applications, procedures for requesting amendments, and supplements to the License of the people's credit fund regarding the operational area are carried out according to the regulations of the Governor of the State Bank of Vietnamon changes that must be approved by the State Bank for credit institutions being cooperatives.

More details can be found in Circular 29/2024/TT-NHNN which comes into force in Vietnam from July 1, 2024.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE