On Jun. 16, VIE CB issued circular on early withdrawal interest rates.
VIE CB issued a circular on application of interest rates for early withdrawal of deposits by organizations or individuals from credit institutions and foreign bank branches.
Replaces circular 04/2011/TT-NHNN further regulating early withdrawal interest rates.
VIE CB published a press release on the promulgation of the circular on the same day.
Follows VIE CB May 2022 deploy 2% interest rate support program, see #121207.
Key Points
Early withdrawal of deposit is where the customer withdraws part or all of the deposit before the due date, the payment date, or the payment date of the deposit.
Applies to 4 forms of deposits: term savings deposits, term deposits, certificates of deposits, slips, bonds and bonds issued by the organization and other forms of receiving term deposits as prescribed in the Law on credit institutions.
Credit institutions and customers agree on early withdrawal of deposits in accordance with regulations of the State Bank of Vietnam for each specific form of deposit.
Circular 04/2022/TT-NHNN divides regulations on early withdrawal interest rates in case of early withdrawal of entire deposit and early withdrawal of part of the deposit.
Customers given more flexibility when needing to withdraw money before due date without having to withdraw the whole amount.
For interest rate agreements for early withdrawal of deposits before Aug. 1, 2022, the effective date of this circular, credit institutions and customers will continue to comply with the committed agreement until the due date, payment date, or payment date.
Effectiveness
Circular 04/2022/TT-NHNN will be effective from Aug. 1, 2022.
Apr. 2024 Draft Amendment
On Apr. 26, 2024, VIE CB issued a draft circular for comments, on amending and supplementing a number of articles of circular no. 04/2022/TT-NHNN.
Amends clause 3, article 3 on certificates of deposit issued by credit institutions.
For agreements on interest rates for premature withdrawal of deposits effective before the date of this circular, credit institutions and customers shall continue to implement according to agreements signed until maturity date, payment or deposit payment date.
Comments can be sent to VIE CB's Monetary Policy Department; no deadline set.
Follows Feb. 2024 VIE PRL approved the draft Law on credit institutions, see #201687.
Sep. 2024 Promulgation
On Sep. 30, 2024, VIE CB issuedcircular 47/2024/TT-NHNN, amending clause 3, article 3 of circular no. 04/2022/TT-NHNN regulating the application of interest rates for early withdrawal of deposits at credit institutions and foreign bank branches.
Implements the proposals detailed above, with effect from Nov. 20, 2024.
Document dated Sep. 30, 2024, received from VIE CB Oct. 4, summarized on Oct. 8.
Oct. 2024 VIE GVT Publication
On Oct. 7, 2024, VIE GVT published circular 47/2024/TT-NHNN dated Sep. 30, 2024 and detailed above, highlighting that it takes effect on Nov. 20, 2024.
