Circular No. 02/2025/TT-NHNN dated April 29, 2025 on regarding domestic issuance of certificates of deposit by credit institutions and foreign bank branches

CIRCULAR

REGARDING DOMESTIC ISSUANCE OF CERTIFICATES OF DEPOSIT BY CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to Decree No. 26/2025/ND-CP dated February 24, 2025 of the Government on functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the request of the Director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam promulgates the Circular on the domestic issuance of certificates of deposit by credit institutions and foreign bank branches.

Article 1. Scope

This Circular prescribes the domestic issuance of certificates of deposit by credit institutions and foreign bank branches (FBBs).

Article 2. Issuers of certificates of deposit

Credit institutions and FBBs may issue certificates of deposit in accordance with establishment and operation licenses of credit institutions or establishment licenses of FBBs. To be specific:

1. Commercial banks.

2. Cooperative banks.

3. General finance companies and specialized finance companies.

4. FBBs.

Article 3. Purchasers of certificates of deposit

1. Vietnamese organizations (including credit institutions and FBBs) and individuals, and foreign organizations and individuals shall purchase certificates of deposit issued by commercial banks, cooperative banks, and FBBs.

2. Vietnamese organizations (including credit institutions and foreign bank branches) and foreign organizations shall purchase certificates of deposit issued by general finance companies and specialized finance companies.

Article 4. Definitions

For the purposes of this Decree, the following terms are defined as follows:

"Certificate of deposit" means a form of deposit represented by a financial instrument, issued by a credit institution or a foreign bank branch for serving as evidence of its debt repayment obligation to the purchaser of the certificate within a given period under interest payment and other conditions.

Article 5. Currency used in issuance and payment

Certificates of deposit shall be issued and settled in Vietnamese dong.

Article 6. Interest rate

1. Interest rates applicable to certificates of deposit shall be decided by issuers in accordance with regulations on interest rates adopted by the State Bank of Vietnam (hereinafter referred to as “SBV”) in each period.

2. Interests on certificates of deposit shall be calculated by adopting SBV’s methods.

Article 7. Term to maturity, issue date and maturity date

1. Term to maturity, issue date and maturity date of certificates of deposit shall be decided by issuers.

2. Where the purchaser is another credit institution or FBB, the issuer may only issue certificates of deposit with a term to maturity of less than 12 months.

Article 8. Face value

Face value of a certificate of deposit shall be VND 100.000 (one hundred thousand) or a multiple of VND 100.000 (one hundred thousand). Face values of certificates of deposit shall be decided by issuers or agreed upon between issuers and purchasers.

Article 9. Method of issuance

1. An issuer shall issue a certificate of deposit directly to a purchaser at at a lawful transaction location within its domestic operation network (hereinafter referred to as a “transaction location”) or via electronic means.

2. In the case of electronic issuance, the issuer shall issue an electronic certificate of ownership of the certificate of deposit to the purchaser.

3. In the case of issuance at a transaction location, the issuer shall issue a physical certificate of deposit to the purchaser. The certificate must be designed and printed with high anti-counterfeit features.

4. Where the purchaser is a non-resident organization or individual, or a resident foreign individual, the issuer may only issue a certificate of deposit directly to such purchaser at a transaction location.

Article 10. Contents of certificate of deposit

1. A certificate of deposit, whether a physical certificate of deposit or an electronic certificate of ownership, must contain at least the following contents:

a) Issuer's name

b) Name of certificate of deposit

c) Symbol/serial number;

d) Face value, term to maturity, issue date and maturity date;

dd) Interest rate, method and time of interest payment;

e) Location for principal and interest payment or purchaser’s checking account for receiving principal and interest payments;

g) Full name, personal identification number or valid passport number of purchaser (if the purchaser is an individual); name, establishment license number or enterprise code (if the purchaser is an organization); purchaser's address;

h) Means for the purchaser to access information regarding certificate of deposit;

i) Signature of the issuer's legal representative;

k) A certificate of deposit issued by a general financial company or specialized financial company must specify that the purchaser may only transfer ownership to an organization.

2. Other contents may be prescribed by the issuer, provided that they are not contrary to applicable laws.

Article 11. Use of certificate of deposit as collateral

Certificates of deposit may be used as collateral in accordance with the issuers' guidance and in compliance with provisions of law on securing the fulfillment of obligations.

Article 12. Transfer of ownership of certificates of deposit and handling of other risks

1. The ownership of certificates of deposit may be transferred by purchase, sale, donation, exchange, inheritance, or other forms in conformity with provisions of law.

2. Issuers shall prescribe the procedures for transfer of ownership of certificates of deposit, and handling of damaged, torn, or lost certificates of deposit and other risks in conformity with relevant laws and their business conditions, ensuring the purchasers' legitimate rights and interests and the issuers' safe operation.

The procedures for transfer of ownership of certificates of deposit purchased by non-resident organizations or individuals, and resident foreign individuals shall be carried out directly at the issuer's transaction location.

3. The ownership of certificates of deposit issued by general financial companies or specialized financial companies may only be transferred among organizations.

Article 13. Means of information access and notification in case of changes to information regarding certificate of deposit

1. Issuers shall provide at least one mean for purchasers to access information regarding the purchased certificates of deposit.

2. Issuers and purchasers may reach an agreement on means of information access other than those prescribed in clause 1 of this Article and means by which the issuers notify purchasers of any changes to information regarding the purchased certificates of deposit.

3. Issuers shall retain information regarding the issuance and payment of certificates of deposit, use of certificates of deposit as collateral (if any), and transfer of ownership of certificates of deposit in accordance with the provisions of law in order to meet purchasers' requests for verification and inspection of information and for dispute settlement.

Article 14. Payment for certificate of deposit

1. Issuers shall sufficiently and timely pay principal and interest on certificates of deposit to purchasers as agreed upon and in conformity with this Circular and relevant laws.

2. Methods for payment of principal and interest on certificates of deposit shall be decided by issuers in accordance with relevant provisions of laws and announced to purchasers prior to issuance of certificates.

3. Payment for certificates of deposit before maturity at the request of purchasers shall be prescribed by issuers, ensuring the issuers' safe operation. Interests paid in case of payment for certificates of deposit before maturity must comply with SBV’s regulations on application of interest rates on premature withdrawal of deposits from credit institutions and FBBs.

4. Where a non-resident organization or individual, or a resident foreign individual purchases a certificate of deposit in cash, the issuer may only pay the corresponding principal and interest in cash.

Article 15. Procedures for issuance of and payment for certificates of deposit

1. Issuers shall prescribe the procedures for issuance of and payment for certificates of deposit, including online procedures (if applicable), in conformity with this Circular, provisions on opening and use of checking accounts, cyber information safety and cybersecurity, electronic transactions, anti-money laundering, and other relevant legal provisions. These procedures must also align with the issuers' management model and operational characteristics and ensure accurate issuance of and payment for certificates of deposit, issuers' safe operation, and asset security for purchasers.

2. Issuers shall fully inform purchasers of their rights and obligations, and the procedures for issuance of and payment for certificates of deposit between the purchaser and the issuer.

Article 16. Electronic issuance of and payment for certificates of deposit

1. Issuers shall provide guidance on electronic issuance of and payment for certificates of deposit in accordance with this Circular and relevant laws.

2. Issuers shall fully inform purchasers of their rights and obligations, and the procedures for issuance of and payment for certificates of deposit between the purchaser and the issuer.

3. Issuers shall display to purchasers at least the contents specified in Article 10 hereof and find technical solutions for purchasers to confirm they have fully read the contents stated on the certificates of deposit.

Article 17. Internal regulations

Pursuant to regulations of the Law on Credit Institutions, this Circular and relevant laws, issuers shall promulgate their internal regulations on issuance of certificates of deposit, including electronic issuance (if applicable) in conformity with their management models, operational characteristics, and business conditions, and ensure their safe operation. Responsibilities and obligations of each department and individual involved in the issuance of certificates of deposit must be specified in the internal regulations.

Article 18. Implementation provisions

1. This Circular comes into force from June 16, 2025.

2. This Circular annuls:

a) Circular No. 01/2021/TT-NHNN dated March 31, 2021;

b) Clause 2, Article 6, Circular No. 12/2021/TT-NHNN dated July 30, 2021.

3. With regard to certificates of deposit that have been issued and remain outstanding as of the effective date of this Circular, issuers and purchasers shall continue following the agreed terms until the completion of payment for certificates of deposit.

Article 19. Implementation

Chief of Office, Director of Monetary Policy Department, Heads of units under the State Bank of Vietnam; credit institutions, foreign bank branches shall implement of this Circular./.