CIRCULAR

PROVIDING FOR WITHDRAWAL AND EXCHANGE OF MONEY NOT ELIGIBLE FOR CIRCULATION

- Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated 16 June 2010;

- Pursuant to the Decree No. 96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

- Pursuant to the Decree No. 40/2012/ND-CP dated 2 May 2012 of Government on money issue operation; reservation, transportation of precious property and valuable papers within State Bank system, credit institutions and foreign bank branches;

- Upon proposal of the Director of Issue and Vault Department;

The Governor of the State Bank hereby issues the Circular providing for withdrawal and exchange of money not eligible for circulation.

Chapter I

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Article 1. Scope of regulation

This Circular provides for the standard for money not eligible for circulation; withdrawal, exchange, selection, packing, delivery of money not eligible for circulation by State Bank of Vietnam (hereby called State Bank), credit institutions, foreign bank branches, State Treasury.

Article 2. Subjects of application

1. State Bank branches in provinces, cities under central government’s management (herein after generally called State Bank branches), Central Banking Department, Issue and Vault Department.

2. Credit institutions, foreign bank branches, State Treasury (hereinafter referred to as the collecting-exchanging unit).

3. Institutions, individuals who perform transactions in cash or have a demand for exchanging money that is not eligible for circulation with the State Bank and the collecting-exchanging units (hereinafter collectively referred to as customers).

Article 3. Money which is not eligible for circulation

1. Money which is not eligible for circulation shall be paper money (cotton money and polymer money), coins which are issued by the State Bank of Vietnam and being in legal circulation, but are torn to pieces, damaged or deformed in accordance with the standards for money not eligible for circulation.

2. The State Bank of Vietnam shall announce typical forms of money not eligible for circulation as a basis for withdrawal, exchange, selection, classification of money.

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PROVISIONS ON STANDARDS, SELECTION, WITHDRAWAL, EXCHANGE OF MONEY NOT ELIGIBLE FOR CIRCULATION

Article 4. Standards for money not eligible for circulation

1. Money that is torn into pieces, damaged due to the circulation process (group of objective reasons):

a) Paper money, of which color is changed, of which designs, letters, digits are faded, which is wrinkled up, smeared, dirty, old; torn into pieces or patched up in full form;

b) Coins, of which the picture, designs, letters, digits and the plated layer are worn out, rusted, damaged partially or wholly.

2. Money that is torn into pieces, damaged due to the preservation process (group of subjective reasons)

a) Paper money which is holed, partially torn; patched up; fired or deformed due to contact with high heat source; of which printing paper, color, security specifications are changed due to the chemical impact (for example detergent, acid, corrosive, etc); which contains the writing, is drawn, erased; which is decayed or deformed due to other reasons, but not due to acts of deterioration.

b) Coins, which are curved, deformed, or of which design, picture is changed due to the impact of external force or high temperature; which are rusty due to contact with metal corrosive chemicals.

3. Money which contains technical error caused during the printing, coining process of the manufacturer, for example printing paper is rumpled causing the loss of picture or printing color, which is splattered with printing ink and contains other mistakes during the printing, coining process.

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1. During the cash collection, payment process with customers, State Bank branches, Central Banking Department, the collecting-exchanging unit shall carry out the selection, classification and withdrawal of money not eligible for circulation.

2. During the counting, delivery and receipt of cash among collecting-exchanging units, State Bank branches, Central Banking Department, if detecting money torn, damaged, due to the preservation process, in any bundle of money which is eligible for circulation, the collection and exchange shall be carried out.

3. In receipt of cash from collecting-exchanging units, State Bank branches, Central Banking Department shall have right to check by chance the exchanged money bundle; in the event that the proportion of the money not eligible for circulation exceeds 5% out of total bundles of checked money eligible for circulation, the total amount of money from the paying units shall be refused, and at the same time, a selection shall be required.

Article 6. Exchange of money not eligible for circulation

1. For money that is not eligible for circulation as stipulated in Clause 1 and Clause 3, Article 4 of this Circular, State Bank branches, Central Banking Department, the collecting-exchanging unit shall be responsible for immediate withdrawal, exchange for customers who have demand, without limit of quantity and requirement of procedures.

2. For money that is not eligible for circulation as stipulated in Clause 2 Article 4 of this Regulation, customers shall submit that money to the State Bank branches, Central Banking Department, collecting-exchanging units. These units shall receive and consider exchanging with the following conditions:

a) Money torn, damaged not due to act of destruction;

b) Where the bank note is fired, holed, torn partially, its remaining area must be equal to or larger than 60% of the area of the note of the same type, if it is patched up, its area must be larger than 90% of the note of the same type and its origin and lay-out must remain unchanged (front, back; upper, lower; right, left), and its security elements are identifiable;

For polymer money, which is fired or shrunk due to contact with high heat source, its remaining area must be at least equal to 30% of the note of the same type, its lay-out remains unchanged, and at least two of following security elements must be identifiable: the hidden picture in the small window; luminescent colorless ink, luminescence of the serial number lines, security fiber, IRIODIN factor, portrait of the President Ho Chi Minh.

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For money notes of which exchange conditions are unidentified and need further appraisal, the relevant customer must submit a written application for money exchange (as per Appendix No. 01 attached herewith).

Article 7. Appraising money which is not eligible for circulation

1. Where it is impossible to determine whether the money fully satisfies the conditions for exchange or not and require appraisal, within a period of 3 working days from the receipt of the money from customers, the collecting-exchanging unit shall deliver the money together with the request for the appraisal (as per Appendix No. 02 attached herewith) to the local State Bank branch for appraisal. For the Central Banking Department, money shall be delivered together with the application for appraisal to the Issue and Vault Department.

2. Within a period of 3 working days from the receipt of the request for the appraisal from the collecting-exchanging unit, the State Bank branch shall give a written notice of the appraisal result and return all the money to the requesting unit. In case that it is unable to appraise the money, the State Bank branches shall, within a period of 07 working days from the receipt of the money and the request for the appraisal from the collecting- exchanging unit or request for the money exchange from customer, the State bank branch shall deliver all the money in question together with a written application for the appraisal to the Issue and Vault Department or Sub-Department of Issue and Vault in Hochiminh city for appraisal.

3. Within a period of 5 working days from the receipt of the request for the appraisal from the State Bank branches and Central Banking Department, the Issue and Vault Department, or Sub-Department of Issue and Vault in Hochiminh city shall give a written notice of the appraisal result and return all the money to the unit that has requested for appraisal.

4. The unit that requests for appraisal shall organize the transport of money not eligible for circulation and take responsibility for security assurance during the transportation process.

Article 8. Dealing with money damaged, deformed that is suspected due to act of destruction

In case of detecting corrupted, deformed money which is not qualified for circulation, and the reason thereof is suspected of the act of deterioration, the collecting- exchanging unit shall draw up the minutes, temporarily seize the corrupted, deformed money and immediately deliver it to the Public Security Agency in the locality for inspection and appraisal. The conclusion made by the Public Security Agency shall be used as the basis so as the collecting- exchanging unit performs the money exchange for customers or deal with the corrupted, deformed money in accordance with provisions of applicable laws.

Chapter III

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Article 9. Packing of money not eligible for circulation

1. After performing the withdrawal, exchange, selection of money not eligible for circulation, the collecting-exchanging units shall tally, seal up and preserve the money in accordance with current provisions of the State Bank of Vietnam. The application for money exchange of customers shall be kept at the collecting-exchanging unit for checking when necessary.

2. After receiving money not eligible for circulation from the collecting-exchanging units, State Bank's branches, Central Banking Department shall be responsible for checking the condition for exchange before packing, sealing up in accordance with current regulation.

In case of deformed money which is unable to package, the Central Vault, SBV’s branches, the Central Banking Department shall carry out the package under the following mode: 100 sheets (pieces) with the same denomination are packed into a small bag; 10 small bags are packed into one large bag, 10 large bags are packed into a sack. The money sack shall be sealed up, leaded in accordance with current provisions.

3. If the money quantity is not sufficient for package by bundle (or bag), State Bank branches, Central Banking Department the collecting- exchanging unit shall pack, preserve them separately for convenience in counting, delivery and receipt.

Article 10. Delivery and receipt of money not eligible for circulation

1. The delivery, receipt of money not eligible for circulation between the collecting- exchanging units and SBV’s branches, the Central Banking Department shall be performed in accordance with current regulations of State Bank on delivery, receipt of money; the delivery, receipt schedule shall be stipulated by the General Manager of SBV’s branch, Director of the Central Banking Department.

2. The delivery and receipt of money not eligible for circulation between the SBV’s branches, Central Banking Department and the Central Vaults and the State Bank branch in Binh Dinh province shall be performed in accordance with the current regulation on delivery, receipt of money in the State Bank system.

Chapter IV

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Article 11. The Issue and Vault Department

1. To set up and submit Governor the typical form of money which is not eligible for circulation in accordance with the regulation in Clause 2 Article 3 this Circular.

2. To guide, inspect the related units in implementation of this Circular.

Article 12. State Bank branches, Central Banking Department

1. To withdraw, exchange the money not eligible for circulation for institutions, individuals.

2. To post the typical form and provisions on withdrawal, exchange of money not eligible for circulation of the State Bank at transaction place.

3. State Bank branches shall guide, inspect the withdrawal, exchange, selection of the money not eligible for circulation of credit institutions, foreign bank branches, State Treasuries in the local area.

Article 13. Credit institutions, foreign bank branches, State treasuries

1. To select, classify the money not eligible for circulation.

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3. To post the typical form and provisions on withdrawal, exchange of money not eligible for circulation of the State Bank at transaction place.

Chapter V

RESPONSIBILITIES OF THE RELATED UNITS

Article 14. Effectiveness

1. This Circular shall come into effectiveness from 20 January 2014.

2. The Decision 24/2008/QD-NHNN dated 22 August 2008 of Governor of State Bank on issuing the Regulation on withdrawal, exchange of money not eligible for circulation shall expire from the date when this Circular comes into effectiveness.

Article 15. Dealing with violation

The collecting-exchanging units which violate the regulations in this Circular, upon their degree, state of violation, shall be disciplined, administratively treated, compensate for damages or accused of criminal responsibility in accordance with regulations of laws.

Article 16. Implementation organization

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FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Dao Minh Tu

APPENDIX No. 01

APPLICATION FOR THE EXCHANGE OF MONEY NOT ELIGIBLE FOR CIRCULATION

To: ………………………..

- Customer’s: …………………………………………………………………………

- Identification card No.: …………… issued by Public Security Agency …………… on……………

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- Telephone No.: ……………………………

Could you please consider withdrawing, exchanging the money not eligible for circulation as follows:

Type of money

Number of sheets

Amount

Serial number

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Total

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+ Amount in number: …………………………………………………..

(In words:……………………………………………………….)

+ Reasons:

………………………………………………………………………………………………

………………………………………………………………………………………………

Date…………………………….

Customer

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Controller

Head of the collecting-exchanging unit

* Note:

- The collecting-exchanging unit shall return 01 copy of the application with the signature of its head and seal

- The money not eligible for circulation can be listed in a separate table if necessary;

FORM NO. 02

APPLICATION FOR APPRAISAL OF MONEY NOT ELIGIBLE FOR CIRCULATION

FOR THE APPLICANT ONLY

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1. Collecting-exchanging unit:

2. Address:

3. Tel No.:

4. List of money not eligible for circulation

7. Appraising unit:

8. Address

9. Tel No.:

APPRAISAL RESULT

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11. Amount of money not eligible for exchange (if any)

Reasons:

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Dated..............
Head of unit
(sign, clearly state full name and seal)

Type of money

Number of sheets

Amount

Serial number

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(It is possible to list in a separate table if required)

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5. Preliminary conclusion:

6. Would like to request the bank............. to appraise the said amount of money not eligible for circulation.

Date..........
Head of unit
(sign and clearly state full name and seal)

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