Time deposit certificates are issued and paid in Vietnamese Dong
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According to the draft, the interest rate on time deposit certificates issued by a credit institution is decided in accordance with the current regulations of the SBV on interest rates for deposits in Vietnamese Dong of organizations and individuals at credit institutions in each period. The method of calculating interest on time deposit certificates shall be implemented according to the regulations of the SBV.
The term, issue date, and due date for payment for time deposit certificates shall be stipulated by the credit institution. In case the purchaser is another credit institution, the credit institution shall only issue time deposit certificates with a term of less than 12 months.
Form for issuing time deposit certificates
A credit institution shall issue time deposit certificates in the form of certificates, book entries, or electronic data in accordance with the provisions of relevant laws.
In case of issuing time deposit certificates in the form of certificates, the credit institution must design and print them to ensure high counterfeit resistance. In case of issuing time deposit certificates in the form of book-entries or electronic data, the credit institution shall provide the purchaser with a certificate of ownership of the time deposit certificate.
The credit institution shall issue time deposit certificates directly to the purchaser at a legal transaction location within the credit institution’s domestic network or issue them by electronic means.
The face value of a time deposit certificate is 100,000 Vietnamese Dong or a multiple of 100,000 Vietnamese Dong. The face value of the time deposit certificate shall be printed on the certificate or as agreed between the issuing credit institution and the purchaser.
Principles for issuing time deposit certificates
The draft clearly states that a credit institution shall organize time deposit certificate issuance batches in accordance with the provisions of this Circular when complying with the safety ratios stipulated in the Law on Credit Institutions and regulations of the Governor of the State Bank of Vietnam, including: Solvency ratio; Minimum capital adequacy ratio of 08% or a higher ratio as prescribed by the Governor of the State Bank of Vietnam from time to time; Maximum foreign currency and gold status compared to equity; Ratio of purchasing, holding, and investing in government bonds and government-guaranteed bonds.
Time deposit certificates may be used as collateral as instructed by the credit institution in accordance with the legal provisions on secured transactions.
Payment of time deposit certificates
A credit institution shall be responsible for paying the principal and interest of time deposit certificates in full and on time to the purchaser of the time deposit certificate as agreed in accordance with the provisions of this Circular and relevant legal provisions.
The method of paying the principal and interest on time deposit certificates shall be stipulated by the credit institution in accordance with relevant legal provisions and shall be announced to the purchaser of the time deposit certificate before the certificate is issued.
Early payment of time deposit certificates shall be regulated by the credit institution based on a request from the purchaser of the time deposit certificate, ensuring the safe operation of the credit institution. The interest rate applicable in case of early payment of time deposit certificates shall be in accordance with the regulations of the SBV.
The procedures for issuing and paying time deposit certificates shall be stipulated by the credit institution in accordance with the provisions of this Circular, regulations on anti-money laundering, and relevant legal provisions; in line with the characteristics and management model of the credit institution; ensuring the issuance and payment of time deposit certificates are accurate and safe. The credit institution must fully inform the purchaser of the time deposit certificate about the procedures for issuing and paying the time deposit certificate.
