On October 22, 2019, the State Bank of Vietnam (SBV) issued Circular No. 16/2019 / TT-NHNN stipulating the issuance of SBV bills. Accordingly, the Circular has detailed regulations on handling measures for credit institutions’ chiefs who fail to make payment or pay insufficient amount of money to buy SBV bills.
The issuance of SBV bills by mode of bidding shall comply with the SBV’s regulations on bidding through open market operations. Accordingly, credit institutions must buy these treasury bills as decided by the Governor of the State Bank of Vietnam and must transfer the buying money into their accounts according to the SBV’s instructions on the day of bill payment.
When credit institutions fail to make payment or make insufficient payment of the required amount of treasury bill purchase, by the end of the payment date, the State Bank (Transaction Center, State Bank branches in provinces, cities under the central Government’s management) shall carry out automatically. deducting the credit institution’s payment account at the State Bank until fully recovering the money amount to buy the bills and notify the credit institution in writing.
In case the credit institution’s payment account at the State Bank is insufficient to pay the outstanding amount of the treasury bill purchase, the credit institution shall be subject to a late payment penalty for the outstanding purchase amount at the overnight lending interest rate. in interbank electronic payments. The late payment fine amount according to regulations. Within the next 5 working days from the payment date, the State Bank will automatically debit the credit institution’s payment account at the State Bank until the full amount of outstanding bills and fine amount are recovered. late payment has not been paid; collect the outstanding money to buy treasury bills, collect the late payment fine.
Upon the expiry of the time limit for debiting the payment accounts, the following regulations: (i) The credit institution fails to make full payment of the amount of money to buy SBV bills to be sanctioned for administrative violations according to regulations on sanctioning of administrative violations in the field of money currency and banking; (ii) SBV (Banking Operation Department, SBV’s branches in provinces, cities under the central Government’s management) shall: cancel the unpaid amount of SBV bills calculated at face value and rounded up to multiples of face value of bills SBV; stop calculating late payment fines; at the same time, continue to automatically debit the payment account or collect money from other sources (if any) of the credit institution to collect the full amount of the late payment fine;
This Circular replaces Decision No. 362/1999 / QD-NHNN1 of October 8, 1999 promulgating the Regulation on issuance of SBV bills. At the same time, the provisions of Clause 2, Article 13 of Circular No. 24/2014 / TT-NHNN are annulled on September 6, 2014, providing guidelines on some contents of deposit insurance activities.
The issuance of Circular No. 16/2019 / TT-NHNN has created a clear legal corridor, binding credit institutions to strictly implement the obligation to pay SBV bills.