Thông tư 32/2012/TT-NHNN

CIRCULAR

ON THE MAXIMUM RATES OF INTEREST ON THE DEPOSITS IN VND OF ORGANIZATIONS AND INDIVIDUALS IN CREDIT INSTITUTIONS AND BRANCHES OF FOREIGN BANKS

Pursuant to the Law on the State bank of Vietnam No. 46/2010/QH12 dated June 16^th 2010;

Pursuant to the Law on credit institutions No. 47/2010/QH12 dated June 16^th 2010;

Pursuant to the Government's Decree No. 96/2008/NĐ-CP on August 26^th 2008,  defining the functions, tasks, powers and organizational structure of the State bank of Vietnam;

At the proposal of the Director of the Financial Policy Department;

The Governor of the State bank of Vietnam promulgate a Circular on the maximum rates of  interest on the deposits in VND of organizations and individuals in credit institutions and branches of foreign banks,

Article 1. The credit institution and branches of foreign banks shall apply the rates of interest on the deposits in VND of organizations (except for credit institutions and branches of foreign banks) and individuals, including the expenditure on promotion in any shape or form, in particular:

1. The maximum rate of interest on demand deposits and term deposits shorter than 1 month is 2% per year.

2. The maximum rate of interest on term deposits from 1 month to under 12 months is 8% per year; people's credit funds and microfinance institutions may apply the maximum interest rate of 8.5% of on the term deposits from 1 month to under 12 months.

3. Credit institutions and branches of foreign banks shall decide the rates of interest on the term deposits over 12 months based on the capital demand and supply.

4. Deposits includes demand deposits, term deposits, saving deposits, certificates of deposit, exchange bills, treasury bills, bonds, and other form of deposits  made by organizations (except for credit institutions and branches of foreign banks) and individuals as prescribed in Clause 13 Article 4 of the Law on credit institutions.

Article 2. The maximum rates of interest on the deposits prescribed in Article 1 of this Circular is applicable to the interest paid at maturity and other methods of interest payment in the form of interest at maturity.

Article 3. Credit institution and branches of foreign banks shall post the rates of interest on deposits in VND at the locations where deposits are received as prescribed by the State bank of Vietnam. Credit institution and branches of foreign banks are prohibited to do sale promotion in any shape or form (by cash, interest rates, and other forms of sales promotion) that contradict laws and this Circular when receiving deposits:

Article 4. Implementation organization

1. This Circular takes effect on December 24^th 2012, and supersedes:

a) The Circular No. 30/2011/TT-NHNN dated September 28^th 2011 of the Governor of the State bank of Vietnam, on the maximum rates of interest on deposits in VND of organizations and individuals at credit institutions and branches of foreign banks.

b) The Circular No. 19/2012/TT-NHNN dated June 08^th 2012 of the Governor of the State bank of Vietnam, amending and supplementing a number of articles of the Circular No.  30/2011/TT-NHNN dated September 28^th 2011 on the maximum rates of interest on deposits in VND of organizations and individuals at credit institutions and branches of foreign banks.

2. The rates of interest on the term deposits in Vietnam of organizations and individuals in credit institutions and branches of foreign banks that are made before this Circular takes effect shall remain unchanged until their maturity; if the organizations and individuals do not take the deposit interest at its maturity, the credit institutions and branches of foreign banks shall apply the rates of interest on such deposits as prescribed in this Circular.

3. The banking inspection and supervision agencies, branches of the State bank in central-affiliated cities and provinces shall inspect and supervise the implementation of the regulations on the rates of interest on deposits in VND; penalize the credit institution and branches of foreign banks that violate this Circular.

4. The Chief Officer, the Director of the Financial Policy Department, Directors of the units affiliated to the State bank of Vietnam, Directors of branches of the State bank at central-affiliated cities and provinces ; Presidents of the Boards of Directors, the Member Assemblies, General Directors (Directors) of credit institutions and branches of foreign banks, and relevant organizations and individuals are responsible for the implementation of this Circular.