New regulations on digital lending

New regulations on digital lending

The Circular No. 06/2023/TT-NHNN adds Article 32a on digital lending rules to the Circular No. 39/2016/TT-NHNN as follows:

- Credit institutions shall adopt the digital lending method in a manner that is appropriate to their business conditions and loan features, and ensures security, safety and protection of data messages as well as confidentiality of information in accordance with regulations of laws on anti-money laundering and electronic transactions, SBV’s risk management guidelines and other relevant law provisions.

- The information system used for carrying out digital lending activities must satisfy level-3 or higher-level information system security requirements laid down in the Government’s regulations on security of information systems by classification and SBV’s regulations on security of information systems in banking operations.

- Credit institutions shall store and manage information and data in accordance with regulations of law; information and data must be stored safely, kept confidential, duly backed up and have their adequacy and integrity ensured to facilitate access or use, where necessary, or to serve the inspection, verification and resolution of trace requests, complaints or disputes, or to be provided at the request of competent authorities.

- Each credit institution shall itself decide to adopt measures, forms and technologies for carry outing digital lending activities, accept all risks that may arise from digital lending process, and must meet the following minimum requirements:

+ It has solutions and technologies available for ensuring the accuracy, confidentiality and safety of information and data during their collection, use and verification process;

+ It has developed measures for checking, examining, updating and verifying information and data; measures for preventing acts of forging, intervening or falsifying information and data;

+ It has developed measures for monitoring, identifying, measuring and controlling risks; risk treatment methods;

+ It has assigned responsibilities to each individual or department for performance of digital lending activities and risk management and control.

- Credit institutions shall consider deciding to carry out digital lending activities as prescribed in Section 3 of the Circular No. 39/2016/TT-NHNN (as added under the Circular No. 06/2023/TT-NHNN).

Relevant provisions of the Circular No. 39/2016/TT-NHNN shall apply to other digital lending-related contents which are not mentioned in Section 3 of the Circular No. 39/2016/TT-NHNN (as added under the Circular No. 06/2023/TT-NHNN).

More detailed regulations are available in the Circular No. 06/2023/TT-NHNN which is coming into force from September 01, 2023.

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