Quyết định 1722/2004/QD-NHNN

DECISION

ON THE ISSUANCE OF THE REGULATION ON THE WITHDRAWAL AND EXCHANGE OF MONEY NOT QUALIFIED FOR CIRCULATION

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12 December 1997, the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam No.10/2003/QH11 dated 17 June 2003;
- Pursuant to the Decree No.86/2002/ND-CP date 05 November 2002 of the Government providing for the function, assignment, authority and organizational structure of the Ministries and Ministerial level agencies;
- Pursuant to the Decree No. 87/1998/ND-CP dated 31 October 1998 of the Government on the issuance, withdrawal and replacement of bank notes, coins;
- Upon the proposal of the Director of the Issuing and Vault Department,

DECIDES:

Article 1. To issue in conjunction with this Decision The Regulation on the withdrawal and exchange of money not qualified for circulation.

Article 2. This Decision shall be effective after 15 days since its publication in the Official Gazette and replace the Decision No. 1344/2001/QD-NHNN dated 29 October 2001 of the Governor of the State Bank on the withdrawal and exchange of money not qualified for circulation.

Article 3. The Director of the Administrative Department, the Director of the Issuing and Vault Department, Heads of related units of the State Bank, the Director of the Banking Operation Department, General Managers of the State Bank branches in provinces, cities under the Central Governments management, General Directors (Directors) of credit institutions, the State Treasury shall be responsible for the implementation of this Decision.

REGULATION

ON THE WITHDRAWAL AND EXCHANGE OF MONEY NOT QUALIFIED FOR CIRCULATION

(Issued in conjunction with the Decision No. 1722/2004/QD-NHNN dated 31 December 2004 of the State Bank of Vietnam)

Chapter I.

GENERAL PROVISIONS

Article 1. Governing scope

This Regulation governs the withdrawal and exchange, package, delivery and receipt of money not qualified for circulation by the State Bank, credit institutions and the State Treasury.

Article 2. Money not qualified for circulation

1. Money not qualified for circulation shall be paper money, polymer money, coins which are issued by the State Bank of Vietnam and being in legal circulation but are torn to pieces, damaged or deformed and shall be classified by criteria provided for by the State Bank.

2. The State Bank of Vietnam shall, from time to time, provide guidance on the criteria of money not qualified for circulation to use as a basis for the selection, withdrawal and exchange of money not qualified for circulation.

Article 3. Responsibility for the withdrawal and exchange of money not qualified for circulation

The State Bank branches in provinces, cities under the central Governments management (hereinafter referred to as the branch of SBV), the Banking Operation Department, credit institutions, the State Treasury (hereinafter referred to as receipt - exchange unit) shall be responsible for the withdrawal and exchange of money not qualified for circulation for organizations and individuals and shall publicly list the criteria of money not qualified for circulation, which are issued by the State Bank, at the transaction place.

Chapter II.

MONEY NOT QUALIFIED FOR CIRCULATION

Article 4. Classification of money not qualified for circulation

1. Money deformed, damaged due to the circulation process shall include

a. Paper money, polymer money that is wrinkled up; dirty; torn into pieces or patched up, stuck; looses the margin (the size of each edge of the note is less than 10mm); the colour, picture, design, words, digits of which are faded due to the oldness, or due to the wornness of the printing ink layer during the circulation process.

b. Coins, the picture, design, words, digits and the plated layer on which are worn out, damaged partially or wholly due to the circulation process.

2. Money, which is deformed, damaged due to the preservation process shall include

a. Paper money, polymer money, which is ink-stained; holed, partially torn; fired or deformed due to contact with high heat source; those, whose printing paper, colour, security features are deformed due to the chemical impact (for example cleansing acid, corrosive substance, etc); those, on which are written or painted; those, which are decayed or deformed due to other reasons.

b. Coins, which are curved, deformed, designed picture of which is changed due to the impact of external force or high temperature; those, which are rusty due to contact with metal corrosive chemicals.

Article 5. Money not qualified for circulation to be exchanged

Money, which is not qualified for circulation shall be exchanged upon full satisfaction of following conditions:

1. It is issued by the State Bank of Vietnam and legally circulated;

2. It is damaged, deformed not because of any subversive act;

3. In case where a bank note gets fired, is holed, torn a part, its remaining area must be equal to or larger than 60% of the area of the note of the same type, if it is stuck from 2 pieces of notes of the same denomination and the same type, its area must be larger than 90% of the note of the same type.

For polymer money, which is fired or deformed due to contact with high heat source, its remaining area shall be determined on the basis of the overall layout, picture, design and remaining security features of the note.

Chapter III.

WITHDRAWAL AND EXCHANGE OF MONEY NOT QUALIFIED FOR CIRCULATION

Article 6. Selection, classification

During the cash receipt, payment process with organizations, individuals (hereinafter referred to as customers), the receipt-exchange unit shall carry out the selection, classification and withdrawal of money not qualified for circulation as provided for in paragraph 1, Article 4 of this Regulation.

Article 7. Exchange of money not qualified for circulation

1. For money that is not qualified for circulation as stipulated in paragraph 1, Article 4 of this Regulation, the receipt - exchange unit shall exchange for customers who have demand without any requirement of document procedures and fee collection.

2. For money that is not qualified for circulation as stipulated in paragraph 2, Article 4 of this Regulation, customers shall submit the materials, application for the exchange of money not qualified for circulation (with enclosed form) to the receipt - exchange unit.

If conditions for money exchange are considered being satisfied, the receipt - exchange unit shall immediately carry out the money exchange for customers and collect the fee for the exchange of money not qualified for circulation in accordance with provisions in Article 9 of this Regulation. In case where the conditions for money exchange are not satisfied, the receipt - exchange unit shall return money to customers and give a notice of the reason thereof.

Article 8. Appraising money which are not qualified for circulation

1. In case where it is not possible to determine whether the money not qualified for circulation fully satisfies conditions of exchange or not or not possible to determine the type the money not qualified for circulation belongs to in accordance with provisions in Article 4 of this Regulation, credit institutions, the State Treasury shall, within a period of 5 working days from the receipt of the materials from the customers, deliver the materials together with the request for the appraisal (with the enclosed form) to the SBVs branch in the locality. Except for the Banking Operation Department, which shall deliver the materials enclosed with the request for appraisal to the Issuing and Vault Department.

2. Within a period of 5 working days from the receipt of the request for the appraisal from the receipt - exchange unit, the SBVs branch shall give a written notice of the appraisal result and return all materials to the unit that has requested for appraisal. In case where the appraisal is not performed, the SBVs branch shall, within a period of 15 working days from the receipt of the materials and the request for the appraisal from the receipt- exchange unit or request for the money exchange of customers, deliver all materials and the written request for the appraisal to the Issuing and Vault Department.

3. Within a period of 7 working days from the receipt of the request for the appraisal from the SBVs branch, the Banking Operation Department, Issuing and Vault Department shall give a written notice of the appraisal result and return all materials to the unit that has requested for appraisal.

4. The unit that requests for appraisal shall decide on the mode of transport of money not qualified for circulation on the basis of ensuring the asset security during the transportation process.

Article 9. Fee for exchange of money not qualified for circulation

1. Fees for exchange of money not qualified for circulation in accordance with provisions in Paragraph 2, Article 7 of this Regulation shall be as follows:

a. For amount to be exchanged with the total value of VND 500,000 upwards: the exchange fee shall be 3% of the total value of money not qualified for exchange that is exchanged;

b. For amount to be exchanged with the total value of less than VND 500,000: the exchange fee shall be 4% of the total value of money not qualified for exchange that is exchanged; the minimum fee level for each amount to be exchanged shall be VND 2,000.

2. Fees for exchange of money not qualified for circulation shall be recorded to income of the receipt- exchange unit.

Article 10. Dealing with money damaged, deformed due to subversive acts

In case of detecting damaged, deformed money, the reasons thereof are suspected of subversive acts, the receipt - exchange unit shall prepare the record on the temporary seizure of the materials and immediately deliver it to the public security agency in the locality for consideration. The conclusion given by the public security agency shall be used as the basis to perform the exchange for customers or deal with materials by the receipt - exchange unit in accordance with provisions of applicable laws.

Chapter IV.

PACKAGE, DELIVERY, RECEIPT OF MONEY NOT QUALIFIED FOR CIRCULATION

Article 11. Package of money not qualified for circulation

1. For money, which gets fired or is deformed due to contact with high heat source:

a. After performing the exchange, credit institutions, the State Treasury shall carry out the preservation, package of polymer money, which is fired or deformed due to contact with high heat source by each customer (enclosed with the copy of his written request) to submit to the Banking Operation Department, the SBVs branch in locality.

b. After verifying each exchange amount of credit institutions, the State Treasury, if conditions for exchange are ensured, the SBVs branch, Banking Operation Department shall perform the package in accordance with current provisions on package, sealing up of cash of the State Bank of Vietnam.

In case where deformed money cannot be packed, the SBVs branch, the Banking Operation Department shall carry out the package under the following mode: 100 notes with the same denomination are packed into a small bag; 10 small bags are packed into a large bag, 20 large bags are packed into a sack, if the quantity is enough; all bags (including 100 sheet bag and 1000 sheet bag) shall be sealed up, leaded.

c. The package of polymer money, which is fired or deformed due to contact with high heat source at the Central Vaults, shall be performed in accordance with the provision in point b, Paragraph 1 of this Article.

2. The package of other types of money not qualified for circulation as provided for in Article 4 of this Regulation shall be performed in accordance with current provisions on package, sealing up of cash of the State Bank of Vietnam.

3. In case where the money quantity (or bag quantity) is not enough for package in a sack (or a bag), the receipt - exchange unit shall carry out the separate package, preservation to facilitate the tally, delivery and receipt.

Article 12. Delivery, receipt of money not qualified for circulation

1. Credit institutions, the State Treasury shall hand in money not qualified for circulation to the SBVs branches, the Banking Operation Department on a periodical basis as stipulated by the General Manager of SBVs branch, Director of the Banking Operation Department. The delivery, receipt shall be performed by each sealed bundle, bag; in case where the money quantity is not enough for package in a bundle, bag and polymer money is fired or deformed due to contact with the high heat source, the delivery and receipt shall be performed for sheet (or piece).

2. The delivery and receipt of money not qualified for circulation between the SBVs branch, Banking Operation Department and the Central Vaults and the State Bank branch in Binh Dinh province shall be performed by each sealed bundle, bag (1000 sheets or 1000 pieces). In case of necessity, the Director of the Issuing and Vault Department shall organize the delivery and receipt by sheets or pieces or by 100 sheet bag with the original seal for polymer money that is deformed and cannot be packed in accordance with provision in point b, Paragraph 1, Article 11 of this Regulation.

Chapter V.

IMPLEMENTING PROVISIONS

Article 13. Organization of implementation

1. The Director of the Issuing and Vault Department shall be responsible for the submission to the Governor for issuing standards of money not qualified for circulation in accordance with provisions in Paragraph 2, Article 2 and modes of bags, sacks used for package of deformed polymer money in accordance with provisions in point b, Paragraph 1 Article 11 of this Regulation; guiding, examining the implementation of this Regulation by receipt - exchange units.

2. General Managers of SBVs branches shall examine the implementation of this Regulation by receipt - exchange units in the locality.

Article 14. Effectiveness of the implementation

The amendment of, supplement to this Regulation shall be decided upon by the Governor of the State Bank.

REQUEST FOR THE EXCHANGE OF MONEY NOT QUALIFIED FOR CIRCULATION

The State Bank branches in provinces, cities, the Banking Operation Department, credit institutions, the State Treasury shall be responsible for withdrawal and exchange of money not qualified for circulation for organizations, individuals

Note: In case where the item 12 arises, the receipt - exchange unit shall deliver a copy of the written request with the signature of units Head and seal (if any) to the customer.

REQUEST FOR APPRAISAL OF MONEY NOT QUALIFIED FOR CIRCULATION