DECISION

ON THE ISSUANCE OF THE REGULATION ON INTER-BANK ELECTRONIC PAYMENT

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 and the Law on Credit Institutions No.02/1997/QH10 dated 12 December, 1997;
Pursuant to the Decree No. 15/CP dated 2 March, 1993 of the Government providing for the assignment, authority and responsibility for the State management of the Ministries and ministerial-level agencies;
Pursuant to the Decree No. 64/2001/ND-CP dated 20 September, 2001 of the Government on the payment activities through payment service suppliers;
Pursuant to the Decision No. 44/2002/QD-TTg dated 21 March, 2002 of the Prime Minister on the use of electronic vouchers as accounting vouchers for the accounting and payment of funds by payment service suppliers;
Upon proposals of the Director of the Banking Information Technology Department,

DECIDES

Article 1. To issue in conjunction with this Decision "the Regulation on inter-bank electronic payment".

Article 2. This Decision shall be effective after 15 days from the date of signing.

Article 3. The Head of the Administration Department, Heads of units of the State Bank, General Manager of the State Bank branches in provinces and cities under the central Government's management, General Director (Directors) of payment service suppliers shall be responsible for the implementation of this Decision.

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FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Nguyen Van Giau

REGULATION

ON INTER-BANK ELECTRONIC PAYMENT
(issued in conjunction with the Decision No. 309/2002/QD-NHNN dated 9 April, 2002 of the Governor of the State Bank)

Chapter I.

GENERAL PROVISIONS

Article 1. Subject and scope of application

The Regulation on inter-bank electronic payment shall provide for issues relating to the management, operation and use of the inter-bank electronic payment system to carry out the payment and settlement between units participating in this payment system.

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In this Regulation, following terms shall be construed as follows:

1. Inter-bank electronic payment (abbreviated as IBP) shall be the process of treatment of inter-bank payment operations from the initiation of the payment order until the completion of payment to the payee, which is performed through the computer network.

2. Inter-bank electronic payment system shall be an integral system including: the inter-bank clearing payment system, the payment account processing system and interface gateway with the electronic money transfer system of the State Bank (abbreviated as EMT).

3. Inter-bank clearing system shall be a system of processing of domestic inter-bank electronic payments in VND and in foreign currencies.

4. High value sub-system shall be a sub-system of the IBP system for the real time performance of gross settlement of high value payments and urgent payments.

5. Low value sub-system shall be a sub-system of IBP system for the performance of low value payments.

6. National payment center shall be the center located in the Central Bank that performs the IBPS's functions such as: the function of high value sub-system, the transition function of low value sub-system, the function of payment account processing, interface with the EMT system and functions of the system control; including hard-ware, soft-ware and communication.

7. Provincial processing center shall be a center located in the State Bank branch in provinces, cities and the Banking Operation Department (abbreviated as BOD) that performs the function of processing of payment orders of the low value sub-system, transition function of high value sub-system within the IBP system.

8. Systematic operation center shall be a constituent part of the national payment center that undertakes the management and control functions of the IBP system.

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10. Direct member unit (abbreviated as a member unit) shall be a unit of members that are directly connected to the IBP system.

11. Indirect members shall be payment services suppliers entitled to participate in the IBP system through direct members.

12. Order sender shall be an organization or an individual that delivers the payment order.

13. Order receiver shall be an organization or an individual that receives the payment order.

14. Drawing unit shall be a member or a member unit that draws and deals with the payment order (out-coming) on behalf of an order sender.

15. Receiving unit shall be a member or a member unit that receives and deals with the payment order (incoming) on behalf of an order receiver

16. Payment order shall be a message made by a member unit and used for payment in the IBP system. The payment order may be an amount that is credited or debited.

17. Credit payment order shall be a payment order of an order sender used to debit a certain amount of money to his account at the drawing unit, and to credit that amount to the receiver's account at the receiving unit.

18. Debit payment order shall be a payment order of an order sender used to debit a certain money amount to the receiver's account at the receiving unit, and credit that amount to the order sender's account at the drawing unit.

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20. Low value payment order shall be a debit payment order with an amount of money less than stipulated level on high value payment.

21. Urgent payment order shall be a credit payment order with low value that is transferred urgently upon customers' request.

22. Message shall be electronic information reflecting the content of a payment order or notifying of the payment and is transmitted through the computer network between units participating in the IBP system.

23. Message of confirmation shall be electronic information used to confirm the status of payment orders in the IBP system.

24. Settlement shall be the determination and payment of residual value between related members to complete their payment obligations.

25. Real time gross settlement shall be the performance of payment obligations between members or member units on the basis of making immediate settlement of each payment amount.

26. Settlement of low value clearing results (referred to as clearing settlement) shall be the performance of payment obligations between parties to the direct clearing payment after the setting off total receivable amounts and payable amounts.

27. Net debit limit shall be the maximal value provided for low value payment operations to be cleared in the clearing settlement.

28. Codification shall be a mode of information conversion, which makes that information incomprehensible to impermissible persons with the view to keeping the secret of information.

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30. User shall be the person who operates the IBP program in accordance with his assignment.

Article 3. Main functions of the IBP system:

1. To perform the high value payment;

2. To perform the low value payment;

3. To perform the settlement, including the real time gross settlement and clearing settlement;

4. To process the interface with the EMT system.

Article 4. Vouchers used in the IBP

1. Payment orders shall be prepared on the basis of vouchers used in the IBP in accordance with current regime.

2.  Vouchers used in the IBP shall be payment orders in paper or in form of electronic vouchers.

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Article 5. Accounts used in the IBP system.

-  Payment accounts of members;

- Account "Clearing payment";

- Account "Collection, payment in lieu of customers";

- Other appropriate accounts

1. In respect of members

a. At the Head-office, following accounts shall be used:

-  Account "Collection, payment in lieu of customers" (each member unit participating the IBP system shall be provided with a detailed account).

- Account "Clearing payment";

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* In respect of members without branches shall not be permitted to open the account "Collection, payment in lieu of customers".

b. At member units, following accounts shall be used:

- Account "Collection, payment in lieu of customers" (detailed account shall be opened for making payment with the Head-office)

- Account "Clearing payment".

- Payment account.

- Other related appropriate accounts (Account "Deposit of customers", other internal accounts) 

2. In respect of the National payment center, following accounts shall be used:

a. Payment account of members participating in the IBP.

b. Account "Clearing payment";

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Article 6. Debit payment in the IBP system

1. The Debit payment in the IBP system shall be the treament of following debit payments in the internal system of the State Bank and considered as the authorised debit transfer (the Contract of debit transfer is not required):

a. To transfer the cash, payment notes (in compliance with the order of competent authorities) between units of the State Bank;

b. To transfer the deficient differences (the counted amount is actually less than the amount stated in the voucher) on transfer of cash, payment notes between units of the State Bank in accordance with the minutes on the counting result of the Council of counting and delivery;

c. To make payment of transfer cheques, letter of credit issued by the State Bank;

d. To charge for the assignment of important printed paper between units of the State Bank;

e. To pay for the purchase of foreign currencies for the State Bank;

g. To transfer the receipt differences that are less than payment differences of the State Bank 's units to the BOD after the settlement has been approved;

h. To transfer the residual value (that has not been amortized completely) of fixed assets when the liquidation and transfer are permitted.

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k. To make debit payment in cases of refusing the acceptance of debit payment order and transition of the settled data of money transfer;

l. The debt transfer of advances that must be supported by written proposal of the Heads of the units of the State Bank within permitted scope of regime on advances.

2. The debts transfer between members that are credit institutions must be authorized in advance and accepted in writing by the State Bank.

Article 7. Provisions on high value payment and low value payment

1. High value payment shall be a payments with the value of from VND 500,000,000 (five hundred million VND) and more.

2. Low value payment shall be a payment with the value of less than 500,000,000 (five hundred million VND).

Chapter II.

MEMBER

Article 8. Membership conditions

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1. Having a payment account at the Banking Operation Department;

2. Maintaining the balance of payment account to secure the performance of the clearing settlement through the IBP system;

3. Setting up, maintain and manage net debit limit and comply with sufficient provisions on the deposit of valuable paper at the State Bank.

4. Registering name, position, sample signature and contact address of officers who are assigned or authorized to perform the IBP of their unit;

5. Registering terminal access device and communicative channel that members shall use when participating in the system and securing the good operation of terminal access devices and soft-ware of the IBP system;

Units of the State Bank system, shall only be required to comply with paragraphs 4, 5 of this Article.

Article 9. Procedures for the participation in and withdrawal from the system

1. Payment services suppliers wishing to participate in the IBP system shall submit an application for the participation in the system (Form No. IBP-01) to the Executive Committee of the IBP system.

2. Members and member units wishing to withdraw from the IBP system shall submit an application for the withdrawal from the system to the Executive Committee of the IBP system 2 weeks prior to the planed date of the withdrawal from the IBP system (Form No. IBP-02).

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Upon receipt of the notice from the Executive Board on the acceptance of the application for the withdrawal from the system, members and member units shall stop the participation in the system at the time stipulated by the Executive Board.

4. In respect of member units or indirect members of any direct member, those direct members shall register the list of units participating in the IBP system (Form No. IBP-03) and submit to the Executive Committee for the consideration and approval.

Article 10. Fees and fee management in the IBP

-  Expenses for construction, installation and maintenance, development and operational improvement of parts in the system which belongs to the State Bank shall be paid by the State Bank. Expenses for construction, installation and maintenance, development and operational improvement of parts in the system which belongs to members shall be paid by those members.

-  The service fee level for payment operations shall be applied in accordance with current provisions.

-  The treatment of other related fees shall be decided upon by the Executive Committee of the IBP system.

Chapter III.

PROVISIONS ON THE MANAGEMENT AND OPERATION OF THE SYSTEM

Article 11. The Executive Committee of the IBP system

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-  O1 Deputy Governor of the State Bank shall be Committee Head;

-  Representatives of Heads of following units at the Head office of the State Bank and following Commercial Bank shall be members:

+  The Finance & Accounting Department

+  The Credit Department

­+  The Monetary - Policy Department

+  The Legislation Department

+  The Banking Operation Department

+  The Banking Information Technology Department

+  The Industrial-Commercial Bank of Vietnam

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+  The Investment and Development Bank of Vietnam

+  The Agriculture and Rural Development Bank of Vietnam.

2. Authorities and responsibilities of the Executive Committee:

a. To direct regular activities of the IBP system;

b. To solve all issues relating to the operation of the IBP system;

c. To deal with disputes;

d. To approve programs, organize and take the lead in meeting sessions of the Executive Board and member conferences;

e. To approve the participation in, the suspense or withdrawal from the IBP system of members and member units.

g. To make decision on the solution of important issues relating to the IBP system.

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Payment orders in the IBP system shall be drawn in form of electronic vouchers in accordance with provisions of the State Bank. During the usage process, members or member units shall verify and take full legal responsibilities for illegal use of vouchers. Following information shall need verifying:

1. Type and form of data;

2. Legality (authorization) of data compilers;

3. Date, month of general verification;

4. The uniqueness;

5. Compulsory elements for a payment order;

6. Code of confirmation message.

7. Code of participating units, code of terminal access devices and code of approvers.

Article 13. Working time applicable to the IBP.

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a. Cut off time for the receipt of daily payment vouchers of units from customers shall fall on 15:30 p.m. of the working day. Vouchers received after 15:30 p.m. shall be processed on following working day;

b. The cut-off time for daily payment orders of units shall fall on 15:45 p.m. of the working day;

c. Time for completing daily works of entire system shall fall on 16:30 p.m. of the working day.

2. Members participating in the IBP system shall comply with provisions on above-mentioned time applicable to the inter-bank electronic payment to ensure the payment being made conveniently, accurately, timely and in an asset secured-manner.

3. Change of working time

The change of working time shall be decided upon by the Executive Committee in conformity with payment request and shall be informed in advance to members and member units.

Article 14. Diary-entry of operations

The settlement process of operations shall be automatically imported in diary data files by the IBP system. Periodically, diary files shall be saved in information carriers (magnetic tapes, floppy discs, hard discs, CD-ROM) and be preserved in accordance with provisions of current regime as in the case of preservation of electronic vouchers. In necessary cases (inspection, control, dispute settlement, etc...), units shall be responsible for presenting diary files to competent authorities. The diary-entry shall be provided for as follows:

1. In respect of each member, member unit, the diary-entry shall be made for operation requests and result message;

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Article 15. User control

The issuance and management of secrecy code for the participation in the IBP system:

1. Secrecy codes are divided into 2 types:

-  Secrecy code for the preparation of payment order and internal control;

-  Secrecy code for approval competence.

2. Authority of secrecy codes management is delegated as follows:

-  Members and member units shall issue and manage secrecy codes for the preparation of payment order and internal control;

-  The National payment center shall issue and manage secrecy codes for approval authority.

3. Any person who is provided with the code shall be responsible for use and preservation in accordance with applicable provisions, in case where the code is revealed or is suspected to be revealed, he must immediately inform competent authorities to make timely procedures for change.

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Article 16. Inquiry and reconciliation

1. Inquiry

Members and member units shall make inquiry on information of accounts' balance and their related information by sending message requesting for the inquiry. The system shall automatically verify the validity of these requests and provide response information.

2. Reconciliation

The reconciliation shall be made daily at the end of a working day:

a. The data that have been accounted during a day at the National payment center and provincial processing center shall be original basis for the reconciliation of payment results;

b. In principle, entire arising payment orders shall be reconciled for the correctness between data at the National payment center, provincial processing center and those of member units in a day, except for irresistible cases such as technical breakdown of information transmission;

c. The reconciliation of payment orders shall be made for each separate day. In case of breakdown that makes the reconciliation impossible to complete in a day as provided, it shall be put off to the following working day after the breakdown has been overcome. The reconciliation shall, however, reflect payment orders for the day when they occurred, despite the fact that it is performed in the following working day;

d. Provincial processing center shall get data of inter-provincial payment orders from the National payment center and combine with the data of payment orders in the area under its management to transfer to member units for reconciliation;

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In case of difference, member units shall inform and cooperate with provincial processing center and the National payment center for settlement.

Article 17. The extension of operating time

In case, due to work requirements, the occurrence of errors in the system of the National payment center, provincial processing center, member units or due to other reasons that affect the payment process, the temporary operating time may be extended; The extension of operating time shall be decided upon by the Executive Committee of the system and be notified to all units in the system.

Article 18. Transmission of files and messages

­Besides payment orders, the system also deals with:

1. All types of data files or messages which are transmitted through the IBP system

a. Files or messages requesting for the confirmation;

b. Files or messages on clearing results;

c. Reporting files or reporting message;

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e. Files or message on operations (through interface gateway) between the IBP system and the EMT system.

2. Requests for the transmission of file or message

a. Files or messages shall be automatically codified on delivery and decoded on receipt;

b. Files or messages shall, depending on their type, be verified for the validity in accordance with following elements:

-  Structure of file or message and compulsory elements,

-  Examination number on quantity of payments and money amounts.

3. Changes in form of file and message

Operation files or messages between the IBP system and EMT system shall be automatically converted into appropriate forms before sending or after receiving.

Article 19. Operation of provision system

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a. In case where the National payment center suffers from irresistible breakdowns such as nature calamity, enemy-inflicted destruction (disaster) etc, the Head of Executive Committee of the system shall make decision on switching moving to the back-up system.

b. All data and processing results in the back-up payment center shall have the same legal validity as for the main payment center.

c. The switching of operation to the main payment center after the breakdowns have been overcome shall begin on the following working day.

d. The National payment center shall inform the whole system on that switching.

2. In respect of provincial processing center

a. In case of irresistible breakdowns such as nature calamity and enemy-inflicted destruction (disaster) etc, or breakdown of the IBP system in the provincial processing center, Managers of the State Bank's branches in provinces, cities where occurring the breakdown of the system shall report to the Executive Committee on the development of the breakdown, if the required time for overcoming breakdown is more than 4 hours, the Executive Committee shall make decision on the operation switching of the provincial processing center to the back-up processing center.

b. All data and processing results at the back-up provincial-processing center shall have the same legal validity as in the case of the main provincial-processing center.

c. When the breakdowns have been overcome, the switching of operation of the system into normal status shall begin on the following working day. The transmission of data from the back-up provincial processing center to the (main) provincial processing center shall be performed at the end of a working day through the computer network or by information carriers such as magnetic tapes, floppy discs, hard discs, CD-ROM, etc.

d. On receipt of the decision on the switching to the provision provincial processing center, members and relevant member units shall be responsible for coordinating with the provincial processing center, the National payment center to promptly deploy and maintain the operation of the back-up processing center until the main provincial processing center is restored and operates as usual.

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g. The data at the provision provincial-processing center shall be verified as follows:

-  Members and member units shall send the report on the total of out-coming and incoming payment orders prior to the time of receiving the notice on the switching to the back-up provincial processing center.

-  Operating officers at the back-up provincial-processing center shall consolidate and verify the data retained in the center with the reporting data of units. In case where the data are alike and the total of out-coming payment orders are equal to the total of incoming payment orders, the back-up provincial processing center shall be permitted to officially operate.

-  Members and member units shall take full legal responsibilities for their reporting data.

-  In case of difference in data, members and related member units shall coordinate with the back-up provincial processing center and the National payment center for settlement.

-  In respect of the BOD, which has to move to the back-up system because of breakdown, shall also comply with provisions as in the case of a provincial processing center. Beside, its function of assets management shall be performed in the National payment center.

Chapter IV.

THE ACCOUNTING IN THE INTER-BANK PAYMENT SYSTEM

Article 20. Procedures for the preparation of payment order

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a. For accountant who manages customers' account (shortly called transaction accountant) shall draw payment order in accordance with following procedures:

-  To verify the validity, legality of payment vouchers of customers;

-  To determine types of payment for settlement;

-  To reconcile, verify the account balance of customers;

-  To insert data in accordance with stipulated forms shown on the screen:

+  Sending unit;

+  Receiving unit;

+  Amount of money;

+  Name and address, Identity Card No., or Passport No. of the sender;

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+  Unit serving order sender;

+  Name and address, Identity Card No., or Passport No. of receiver;

+  Account of receiver;

+  Unit serving order receiver;

+  Content of money transfer;

-  To re-control the inserted data and put the secrecy code (internally) in the electronic vouchers.

-  To sign on vouchers, transfer inserted vouchers and data to accountant of money transfer.

b. In respect of controlling accountant (chief accountant or authorized person)­

-  Based on relevant vouchers, the controlling accountant shall insert again following elements for verification of the data inserted by transaction accountant:

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+  Unit serving order sender;

+  Unit serving order receiver;

+  Amount of money;

-  If any error in these vouchers is discovered, they shall be returned to the transaction accountant for correction;

-  If the data are correct, the controlling accountant shall put his own secrecy code (internally) in the payment order, sign on the vouchers and transfer them to the approver.

c. Assignment of approver (account holder or authorized person)

-  To verify the correctness between data on the original voucher and data on the screen;

-  If any error in the voucher is discovered, the approver shall return it to transaction accountant or controlling accountant for correction.

-  If the data are correct, the approver shall sign on the voucher, put his own secrecy code in the payment order for sending.

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In case where the incoming order being an electronic voucher of the internal payment system or bilateral one of credit institutions has been verified regularly, transaction accountant shall supplement insufficient contents in accordance with provisions on the preparation of payment order; Controlling accountant and approver shall reexamine elements as in the case of a paper voucher to secure the accuracy, then put their own secrecy code in the payment order for sending.

3. After the approver has verified and put his secrecy code in the payment order, it shall be printed into 2 copies: one kept as voucher diary, one used for the Debit or Credit advice sent to customers.

Article 21. The accounting of payment orders with high value or low value, which have been accepted, at the drawing unit (including the result of clearing payment performed in provinces, cities and area).

1. The accounting of high value or urgent payment order

a. In respect of a credit payment order

Debit: Appropriate account (Deposit of customers, etc)

Credit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office)

b. In respect of a debit payment order

Debit: Account  "Collection, payment in lieu of customers" (detailed account paid to the Head office)

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-  Upon receipt of the notice on the acceptance of debit transfer from the receiving unit, the drawing unit shall pay customers and draw a transfer order and perform following accounting entries:

Debit: Account "Other receivables" (in respect of a debit payment order of customer)

Credit: Appropriate account (deposit of customers, etc)

In case where the drawing unit receives the notice on the refusal of debit payment order (which state clearly the reasons for refusal), they shall verify the validity and perform following accounting entries:

Credit: Account "Collection, payment in lieu of customers" (detailed account for payment to the Head office)

Debit: Appropriate account (that has been credited before)

2. The accounting of low value payment orders and the result after making clearing payment in the area

a. On sending of payment orders to the clearing payment in the area,

-  In respect of a credit payment order, following accounting entries shall be made:

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Credit: Account "Clearing payment"

-  In respect of a debit payment order, following accounting entries shall be made:

Debit: Account "Clearing payment"

Credit: Appropriate account

Before processing and accounting for debit payment orders (if permitted), a notice on the acceptance of debit transfer must be received from receiving member bank and it shall be kept with the debit order.

b) Upon receipt of payment orders through the clearing payment in area, following accounting entries shall be made:

-  In respect of a credit payment order:

Debit: Account "Clearing payment"

Credit: Appropriate account

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Debit: Appropriate account

Credit: Account "Clearing payment".

c. Upon receipt of the clearing payment results from the provincial processing center after each processing time of the clearing payment results, following accounting entries shall be made:

-  In case where the difference in the clearing payment is collected (receivable):

Debit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office).

Credit: Account "Clearing payment".

-  In case where the difference in clearing payment is paid (payable):

Debit: Account "Clearing payment"

Credit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office).

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Article 22. The accounting of payment orders at the receiving unit:

1. At the Head office of members:

a. The accounting of payment orders:

-  In respect of credit payment orders (high value or urgent)

+  In case where the beneficiary being an individual or organization has account at the Head Office, following accounting entries shall be made:

Debit: Payment account at the State Bank

Credit: Appropriate internal account

+  In case where the beneficiary being an individual or an organization has account at branches of the same bank, following accounting entries shall be made:

Debit: Payment account at the State Bank

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-  In respect of debit payment orders

+  In case where paying individuals and units have account at the Head office, following accounting entries shall be made:

Debit: Account "Appropriate internal deposit"

Credit: Payment account at the State Bank

+  In case where paying individuals or units have account at branches of the same bank, following accounting entries shall be made:

Debit: Account "Collection, payment in lieu of customers" (detailed account of each branch unit, operation center)

Credit: Payment account at the State Bank.

b. The accounting of payment orders in the clearing payment and the results of clearing payment where the Head office participates as a direct member and BOD is the organizer shall be made as follows:

-  Orders that are sent out for clearing payment in the area as well as received from other members, shall be similarly dealt with and accounted in accordance with the guidance in Article 21, paragraph 2, point a and b.

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+ If the result is a receivable, following accounting entries shall be made:

Debit: Account "Deposit at the State Bank"

Credit: Account "Clearing payment"

+ If the result is a payable, following accounting entries shall be made:

Debit: Account "Clearing payment"

Credit: Account "Deposit at the State Bank"

c. Upon receipt of the clearing payment result from the provincial processing center,

-  On the basis of the payment list sent by the BOD, based on the total of receivable or payable differences, the accounting shall be made respectively between the payment account at the State Bank and the account "Clearing payment".

- Based on the detailed result of the payment list sent by the BOD, the detailed accounting shall be made between the account "Clearing payment" and the account "Collection, payment in lieu of customers" (detailed account of each branch unit, operation center).

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a. The accounting of payment orders

+  In respect of credit payment orders

Debit: Account "Collection, payment in lieu of customers (detailed account paid to the Head office)

Credit: Appropriate account

+  In respect of debit payment orders

Debit: Appropriate account

Credit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office)

b. In case where payment orders are received through clearing payment in area, and the clearing payment results are received after each processing time of the clearing payment results, they shall be processed and accounted in accordance with Article 21, Paragraph 2, Point b and c.

c. Dealing with authorized debit payment orders that customers fail to have sufficient payment capacity:

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- During the acceptable time, if customers' accounts are provided with sufficient funds by them for the performance of debit payment order, the receiving unit shall make accounting as follows:

Debit: Account of customer

Credit: Account "Collection, payment in lieu of customers".

-  After the acceptable time, if customers still fail to provide sufficient funds to their accounts for the performance of the incoming debit payment order, the receiving unit shall make an out-coming debit payment order for return to the drawing unit, which states clearly the content of refusal, and account for the incoming transfer order as follows:

Debit: Account "Receivables"

Credit: Account "Collection, payment in lieu of customers"

The out-coming debit payment order for sending to the drawing unit shall be drawn in accordance with refused contents:

Debit: Account "Collection, payment in lieu of customers"

Credit: Account "Receivables"

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Article 23. The accounting and processing of payment orders at the National payment center (the Banking Operation Department)

Based on the list drawn by electronic data to perform the control, accounting, auditing and preservation.

1. In respect of high value and urgent payment orders, following accounting entries shall be made

a. For a credit payment order

Debit: Payment account of member who sends the payment order

Credit: Payment account of member who receives the payment order

b. For a debit payment order

Debit: Payment account of member who receives the payment order

Credit: Payment account of member who sends the payment order

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- The National payment center shall open an account "Clearing payment" to deal with results of clearing payment transferred by provincial processing centers. After the processing of clearing payment results, the National payment center shall send the detailed list of clearing payment results transferred by provincial processing centers and determine the receivable, payable differences for sending to the Head office of members. After the processing of the clearing payment results of entire system, the balance of this account must be zero, at the end of the day.

a. In respect of members who must pay:

Debit: Payment account of members

Credit: Account "Clearing payment"

b. In respect of members who are entitled to receive:

Debit: Account "Clearing payment"

Credit: Payment account of members

Article 24. Upon performance of inter-bank electronic payment in provincial processing center, the accounting shall not be carried out, but following works shall be performed:

1. Sending message guiding the requests for clearing settlement after the clearing of vouchers;

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-  High value payment;

-  Low value payment;

-  Debt payment with authorization;

3. Receiving message of confirmation notice and clearing results from the National payment center to consolidate, then send them to units and the State Bank branches.

Article 25. Interface with the EMT system

1. Dealing with operations transferred to the IBP system by the EMT system

Units of the EMT system that make payment with units of the IBP system shall process operations as follows:

a. Payment orders shall be drawn by the State Bank branches in provinces, cities and processed through the EMT system; The result shall be transferred to the National payment center through interface gateway.

b. The National payment center shall decode, verify the validity of payment orders; If discovering any error, payment orders shall be returned to the EMT system; If valid, payment orders shall be converted into message in conformity with the IBP system and settled after the validity of message and the balance of related payment account have been verified.

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-  In respect of high value payment orders, the National payment center shall account for payment accounts and send the settlement result or notice of error to the EMT processing center. Payment orders shall be sent to relevant receiving units through the provincial-processing center.

-  In respect of requests for clearing settlement, the National payment center shall account them into payment accounts; the result shall be sent to the EMT system.

-  In respect of requests for cancellation, the National payment center shall verify payment requests in the queue that are pending for settlement and send processing results (confirmation of the cancellation or notice of the error) to the EMT system.

-  In case where the verification and reconciliation are required, the National payment center shall send response result to the EMT system.

2. Dealing with operations of the EMT system transferred by the IBP system

Units of the IBP system that carry out operations with units of the EMT system shall perform as follows:

a. Payment orders shall be drawn by drawing unit and sent to the provincial-processing center;

b. The provincial-processing center shall verify the validity and send them to the National payment center;

c. The National payment center shall account for payment accounts after the validity of payment orders has been verified; the confirmation result of the settlement or notice of the error shall be sent to the provincial processing center and the drawing unit.

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3. Dealing with requests for return

Drawing units or receiving units may require for the return of payments when one of parties takes parts in the EMT system and the other participates in the IBP system. Interface gateways shall carry out the receipt of requests and transfer them between 2 systems in accordance with steps as stated above, but the return shall be performed through accounting entries contrary to first step. All operations accepted by one of 2 systems shall not be permitted to cancel.

4. Dealing with reconciling information

Units and the State Bank branches belonging to the EMT system shall receive reconciling information from the National payment center at the end of the working day.

Chapter V.

 THE PERFORMANCE OF CLEARING SETTLEMENT BETWEEN MEMBERS

Article 26. Net debt limit

1. Setting up of the net debt limit

Members participating in the clearing settlement shall, by themselves, set up a limit of net debt for low value payments and submit it to the BOD. The BOD shall verify the arithmetical correctness and inform the result to these units for implementation. Members must deposit valuable papers for net debt limit in accordance with provision in Article 27 of this Regulation. The setting up of net debt limit shall be carried out every 6 months during the first 5 days in January and July annually.

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2. The adjustment of net debt limit

a. The BOD may request members participating in clearing settlement to adjust limits of net debt if these limits are too low or too high after considering previous net debt of these members.

b. Each member may change the limit of net debt and must inform the result to the BOD after completing all procedures for the change of net debt limits;

c. In necessary case, the Director of BOD may accept the request for the increase of net debt limits of members participating in clearing settlement without notifying in advance. However, this acceptance may be cancelled immediately if necessary deposit valuable papers are not sufficiently supplemented by those members within stipulated time.

d. The BOD shall immediately notify members participating in clearing settlement of information relating to the change of above limits.

3. The management of net debt limit

a. At the beginning of working day, the National payment center shall update provincial processing centers on the limit of net debt that is equal to the value set up by members (the limit at the beginning of the day). At each point of time during a working day, this limit may be changed (increase or decrease), depending on the payment operations of members and member units (current net debt limit). Periodically every 10 seconds, the National payment center shall recalculate the current net debt limit of each member and update provincial processing centers on it. Current net debt limit of each member shall be calculated by the net debt limit that has been set up at the beginning of the day adding to total of receivable amounts and subtracting payable amounts. Members must regularly supervise their net debt limit to maintain it at an appropriate level.

b. In case where the operation is not carried out because the request for payment is refused due to the lack of net debt limit, members must at once inform the National payment center and related customers of this payment request, at the same time take necessary measures for dealing with obstacles including the increase of their net debt limit.

Article 27. Valuable paper used for deposit

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a. The State Treasury Bills,

b. The State Bank Bills,

c. Other valuable papers in accordance with provisions of the State Bank

2. The calculation of deposit valuable papers

a. The BOD shall collect deposited valuable papers from members participating in clearing settlement under the price at the collection time of deposit valuable papers, with the percentage of 10% of net debt limit set up by members.

b. The BOD may adjust the money amount that is equivalent to the value of valuable paper deposited by members within permitted scope to secure the payment capacity of these members.

c. After the calculation of the money amount of deposited valuable papers, the decimal part less than 100 million Dong shall be made even up the nearest integer.

3. Time for sending the deposited valuable paper

Members participating in clearing settlement shall provide deposited valuable papers in accordance with applicable provisions: The application of deposit time of valuable papers is stipulated as follows:

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b. In case where deposit valuable papers belong to the type stated in Point b, Paragraph 2 of this Article, they shall be sent at the end of month after completing the calculation of the minimal money amount of deposit valuable papers.

4. Price determination of deposited valuable papers

The value of deposit valuable papers shall be determined in accordance with discounted interest rate. However, if valuable papers are issued at the discounted price, their value shall not exceed that discounted price.

5. The return of deposited valuable papers

a. When the value of valuable papers deposited at the BOD is in excess of minimal money amount that has been calculated in accordance with Point b, Paragraph 2 of this Article, respective members participating in clearing settlement may request for the return of deposited valuable papers equivalent to the above-mentioned excessive part.

b. Upon the receipt of valid request for the return of deposited valuable papers, the BOD shall complete procedures for the return of those deposited valuable papers on the following working day.

6. The transfer of deposited valuable papers

In case where any member lacking payment funds, after having carried out solutions as provided for in Article 32 of this Regulation, but still fails to have enough funds for payment, the BOD shall perform the transfer of deposit valuable papers of this member at the nearest transaction session of the monetary market and security market. Procedures for the transfer of deposited valuable papers shall be in accordance with provisions of the State Bank.

Article 28. The performance of clearing settlement

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1. At the National payment center

a. Sending messages that provide the guidance on the request for clearing settlement to provincial processing centers to get net data of low value;

b. Receiving internal clearing result of each provincial processing center and combining with inter-provincial clearing results in the National payment center to clear once more. This clearing result shall be informed to provincial processing centers;

c. The National payment center shall perform the clearing settlement:

The accounting shall be made in accordance with the guidance provided for in Paragraph 2, Article 23 of this Regulation.

d. The National payment center shall inform the result of clearing settlement to provincial processing centers;

2. At provincial processing centers

a. On receipt of a request for the clearing result from the National payment center, provincial processing centers shall carry out the clearing and send the message requesting for the clearing settlement and clearing results to the National payment center;

b. Receiving the message of confirmation and clearing results from National Payment Center.

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1. Supervising time

The BOD shall supervise the clearing settlement through the IBP system one hour prior to the stipulated time for settlement sessions in the morning and half an hour for settlement sessions in the afternoon.

2. The order of supervising contents shall be as follows:

a. Verifying and determining the development of funds through the inquiry on the IBP system, monitoring daily diary file.

b. Informing the development of funds to members; anticipating the possibility for the lack of funds and requesting members to take necessary measures;

c. Verifying the supplement of fund to payment account of members who have been informed about the lack of funds before.

Article 30. Responsibility for sharing the deficient amounts in the clearing settlement.

1. Determination of responsibilities

When any member who lack payment fund, after having carried out all solutions provided for in Paragraph 6, Article 27 of this Regulation, still fails to have sufficient payment funds, the State Bank may distribute this deficient amount to other members participating in clearing settlement for sharing as a temporary loan. If any member who fails to bear the distributed deficiency, the State Bank shall request the remaining members participating in clearing settlement to take over the share in this outstanding amount in form of temporary lending. The sharing rate of deficient amount of funds to members participating in clearing settlement shall be based on the respective valuable papers deposited by them in the BOD. In case of bankruptcy of the member who lacks funds, all members who have taken part in sharing the deficient amount of funds of this bankrupt member shall be entitled to enjoy the payment of debts in accordance with provisions of applicable laws on the bankruptcy of enterprises.

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a. On receipt of the notice on the distributed amount for sharing the deficient amount, respective members shall send their distributed amount to the account "Deposit" in the BOD at the time determined for payment.

b. On the basis of the notice on distributed amounts, members participating in clearing settlement shall recalculate the outstanding of clearing settlement including the money amount contributed to the distributed deficient amount and send the amended notice on clearing settlement to the BOD for the settlement in accordance with designated time.

3. The return of deficient amount.

Any member lacking fund for the implementation of clearing settlement shall promptly refund the temporary loan in addition to the interest that is determined in accordance with provisions on lending in the payment of the State Bank.

Article 31. The rejection of payment operations in clearing settlement.

In respect of members who lack fund for payment, after measures of fund supplement have been applied in accordance with provisions in Paragraph 6, Article 27 and Paragraph 1, Article 30 of this Regulation, still fail to have enough funds for the payment of their payable amounts, the request for the clearing settlement shall be made again to exclude the payments of these members.

Chapter VI.

 DEALING WITH THE LACK OF FUNDS AND ERRORS IN THE INTER-BANK ELECTRONIC PAYMENT

Article 32. Dealing with the case of lacking of payment funds and shortage of net debt limit

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a. To make overdraft payment in accordance with provisions of the Governor of the State Bank.

b. To supplement funds from funds resources of the very members;

c. To supplement funds through operations on monetary market;

d. To temporarily transfer that payment order to the queue; and it shall be processed when sufficient money is provided;

e. At the end of working day, if respective payment accounts have not yet been provided with sufficient money, payment orders retained in the queue line shall be automatically cancelled. Members and member units shall carry out the inquiry service to verify the development of these payments.

2. In respect of low value payment orders

a. In case where net debt limit is not sufficient

In case where the money amount stated in the payment order exceeds the net debt limit, they shall be processed as follows:

-  The payment order shall be performed only when the net debt limit is sufficient;

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b. In case of lacking funds in the payment account, members shall:

-  Make overdraft payment in accordance with provisions of the Governor of the State Bank;

-  Supplement funds from funds resources of the very members;

-  Supplement funds through operations on monetary market.

-  At the end of working day, if members who lack funds, still fail to supplement sufficient money for payment of net amounts payable, the IBP system shall carry out the overnight lending in accordance with provisions of the State Bank.

Article 33. Dealing with queue and clearance

1. When payment account of a unit lacks money, the National Payment center shall retain requests for payment in the queue. When the deficient account of that member unit is supplemented with money, the National payment center shall process the transfers of money in accordance with the following order: first come – first process. In case where a request for the transfer of a big money amount in the queue obstructs the settlement of other money transfers in the queue, the National payment center may, in the first place, transfer (reverse the queue) unprocessed requests in accordance with the order: first come – first process while they still remain the request for high value transfer that they have received before but kept in the queue due to the deficiency of money.

The queue line shall be managed as follows:

a. Making periodical verification of payment accounts;

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c. Dealing with requests for cancellation in accordance with the principle: first comes – first process.

2.  Units participating in the payment shall be only entitled to cancel payment orders in the queue before the completion of accounting entries; and low value payment orders that have not yet been cleared. The implementation shall be in accordance with following order:

a. On receipt of a cancellation order of a payment order from the drawing unit, the provincial processing center shall base on the diary to verify the validity of the cancellation order;

b. If it is a valid operation, the cancellation order shall be transferred to the National payment center;

c. The National payment center shall check the queue, if the operation is in the queue, the cancellation shall be performed; Cancellation result shall be informed to the drawing unit. If the operation is not in the queue, the system shall send the notice on the development of the operation to the drawing unit.

Article 34. Principles for adjustment of errors in the IBP system

1. Ensuring the consistency of data between the drawing unit, the receiving unit and the National payment center. Errors shall be corrected at the place where they occur. To strictly forbid the arbitrary correction of data, adjustment of errors in the IBP.

2. When errors are discovered, measures for adjustment shall be immediately taken to avoid the delay in the payment process. The correction of errors shall comply with principles, methods of error correction by accountants in general and of the IBP.

3. Any unit, individual, who causes errors or violates principles, methods of error correction shall, depending on the seriousness of errors, be subject to the punishment in accordance with provisions and take full material responsibilities for errors that they cause to related parties.

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1. Principles

a. A payment order shall be only cancelled in following cases:

-  It has been drawn but has not yet been transferred;

-  It has been transferred but still in the queue for payment.

b. A payment order shall be only returned in following cases:

-  Authorized debit payment order shall be returned only when the drawing unit has not yet paid to customers under the payment order or has paid, but then recovered this payment.

-   Credit payment order shall be returned only when the unit that has received the incoming payment order has not yet credited to accounts of customers or credited, but customers have returned.

2. Documents on the cancellation and return of payment orders:

a. Documents on the cancellation of a payment order shall include:

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-  Cancellation order of a credit payment order: which is drawn by the drawing unit to cancel the credit payment order that has not been transferred or has already been transferred but still in the queue (has not been dealt with due to the lack of funds)

b. Documents on the return of a payment order shall include:

-  Request for the return of a payment order: which is drawn by the drawing unit and sent to the receiving unit to request for the return of credit payment order with errors and; is basis for drawing an out-coming credit payment order of the receiving unit to repay to the drawing unit but on the basis of the full recovery of amount that has been paid or transferred by customers.

-  Notice on the refusal of a request for the return of a payment order: which is drawn by the receiving unit to refuse the request for the return of a credit payment order because they fail to recover money from customers.

3. When member units cancel or return the payment orders, they must perform as promptly as in the case of the settlement of urgent payment orders.

Article 36. Dealing with errors at the unit that draw payment orders

1. The settlement of errors before transmission of a payment order

a. If any error in the payment order is discovered before the controller put the secrecy code for sending, accountant shall base on original documents to correct it.

b. If any error in the payment order is discovered after the controller has put the secrecy code, a minutes on the cancellation of the wrong payment order shall be drawn, which states clearly the order code, time and date of cancellation order and is supported by signatures of the Head of accounting division and related accountants. The minutes shall be kept in a separate file for preservation, and a correct payment order shall be prepared for sending.

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When any error is discovered such as incorrect amount of money (excessive or deficient), incorrect position of Credit and Debit, the drawing unit shall make an immediately verification and inquiry to the receiving unit to work out timely solutions. The drawing unit shall make a minutes for defining reasons and personal responsibility clearly and process as follows:

a. In case of deficiency:

Based on the minutes, the drawing unit shall draw a supplemental payment order of the deficient amount to send to the receiving unit. The supplemental payment order must state clearly: "supplemental transfer in accordance with debit (or credit) payment order No. ......... dated .................. the amount that has been transferred ............." and accounting entries shall be made in accordance with the guidance in Article 21 of this Regulation.

b. In case of excess

- In respect of an overvalued credit payment order:

Based on the minutes to draw a request for the return of a credit payment order of the excessive amount, then immediately send to the receiving unit together with drawing a transfer order and make following accounting entries:

Debit: Account "Receivables"

(sub-account of individual causing errors)

Credit: Appropriate account

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To record it in "The book for monitoring requests for the return of credit payment orders that have been transferred"

On receipt of a credit payment order from the receiving unit that repays the above-mentioned excessive money amount, the drawing unit shall:

Delete it in "The book for monitoring requests for the return of credit payment orders that have been transferred " and make following accounting entries:

Debit: Account "Collection, payment in  lieu of customers" (detailed account paid to the Head office)

Credit: Account "Receivables" (Sub-account of individual causing errors)

The money amount collected and returned by the receiving unit

In case where the receiving unit refuses the request for the return of the credit payment order for the above excessive amount, because it fails to collect it from customer, the drawing unit shall set up a settlement Committee in accordance with current provisions to determine the responsibility and compensation of the individual who has caused errors

-  In respect of an overvalued debit payment order:

Based on the minutes to draw a cancellation order of debit payment order, then immediately send to the receiving unit to cancel the excessive amount on the debit payment order, and make following accounting entries:

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+ "Other receivables" (if not yet paid to customers)

+ "Deposit of customers" (if already paid to customers)

+ "Receivables" (if money has been paid and the account "Deposit of customers" has not enough balance)

Credit: Account "Collection, payment in  lieu of customers" (detailed account paid to the Head office)

Excessive money on the debit payment order

In case where the payment has been made to customer, but the balance of deposit account of the customer is not sufficient to perform the order of cancellation of a debit payment order for the excessive amount, the drawing unit shall record into the account "Receivables" (account of individual causing errors), then take all measures for collection of the excessive amount, if the collection fails, the drawing unit shall define the responsibility for the compensation in accordance with provisions of current regime.

On receipt of the notice on the money amount transferred by the receiving unit, the drawing unit shall process and account as follows:

Credit: Appropriate account (one of following accounts)

+ "Other receivables" (if not yet paid to customers)

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+ "Receivables" (if money has been paid and the account "Deposit of customer" has not enough balance)

Debit: Account "Collection, payment in  lieu of customers" (detailed account paid to the Head office)

The excessive amount in the debit payment order

c. In case of error in credit and debit position:

The drawing unit must make a minutes together with a cancellation order of a debit payment order (in respect of the wrong credit payment order) or a request for the cancellation of a credit payment order (in respect of a wrong debit payment order) to cancel entirely the wrong payment order, after that draw a correct payment order for sending to the receiving unit.

-  The settlement of a credit payment order wrongly prepared:

+  Which should have been credited and accounted

Debit: Appropriate account

Credit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office)

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Debit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office)

Credit: Appropriate account

+ Now, it shall be adjusted by: drawing a cancellation order of debit payment order to send to the receiving unit and account:

Debit: Appropriate account

Credit: Account "Collection, payment in  lieu of customers" (detailed account paid to the Head office)

Entire amount of money                    transferred wrongly

+ After that, drawing a correct credit payment order for sending out.

-  The settlement of a debit payment order wrongly prepared:

+  Which should have been debited and accounted

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Credit: Appropriate account

+  but has been credited and accounted:

Debit: Appropriate account

Credit: Account "Collection, payment in lieu of customers" (detailed account paid for the Head office)

+  Now, it shall be adjusted by drawing a request for the return of credit payment order to send to the receiving unit and draw a transfer order then make following accounting entries:

Debit: Account "Receivables" (sub-account of individual causing errors)

Credit: Appropriate account

Entire amount of money  transferred wrongly

+ After that, drawing a correct debit payment order for sending out.

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Article 37. The settlement of errors at the unit that receives payment order.

1. The settlement of payment order with errors due to technical errors or payment orders that are discovered to be faked.

In these cases, the receiving unit shall not be permitted to make accounting entries but verify with the sending unit; at the same time inform the provincial-processing center for coordination and taking measures of solution.

2. In case where the value of a payment order is undervalued

Upon receiving a supplemental payment order to transfer the deficient amount from the drawing unit, the receiving unit shall reconcile and verify strictly the undervalued payment order and the supplemental payment order, if they are valid, it shall perform the accounting entries as in the case of another regular payment order.

3. In case where the value of a payment order is overstated

a. In case where the overvalue is discovered before the accounting entry is made to the account of the customer: If the receiving unit receives a notice of the inquiry from the drawing unit on the excessive transfer of money before its receipt of the payment order, the receiving unit shall record in the book for monitoring payment orders with errors to take timely measures for settlement.

Upon its receipt of an incoming payment order, the receiving unit shall verify, reconcile the notice it has received, if the inquiry notified is confirmed to be sent by the sending bank, it shall process as follows:

-  In case of a credit payment order, following accounting entries shall be made:

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Credit: Account "Payables" (detailed account)

Credit: Account of customer

The total amount

The excessive amount

The exact amount

-  In case of a debit payment order, the following accounting entries shall be made:

Debit: Account of customer

Debit: Account "Receivables" (detailed account)

Credit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office)

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The excessive amount

The total amount

Upon receiving a request for the return of a credit payment order for the excessive amount (in case where the credit payment order is overvalued) or an order of cancellation of a debit payment order for the excessive amount (in case where the debit payment order is overvalued) from the drawing unit, the receiving unit shall process as follows:

-  In respect of an overvalued credit payment order:

Based on the request for the return of the credit payment order to draw an out-coming credit payment order to repay the drawing unit the excessive amount, and to record:

Debit: Account "Payables"

Credit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office)

The excessive amount in the overvalued credit payment order

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Based on the cancellation order of the debit payment order to record:

Debit: Account "Collection, payment in lieu of customers"

Credit: Account "Receivables"

The excessive amount in the overvalued debit payment

b. In case of receiving a notice from the drawing unit after the payment has been made to customers, the receiving unit shall record in the book for monitoring payment orders with errors and process as follows:

-  In respect of an overvalued credit payment order:

Upon receiving a request for the return of the credit payment order for the excessive amount transferred by the drawing unit, if it is correct after control, the receiving unit shall process as follows:

+  In case where the balance in customers' account is sufficient: Based on the request for the return of credit payment order, the receiving unit shall draw an out-coming credit payment order to return the excessive amount to the drawing unit:

Debit: Account "Deposit of customer"

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The excessive amount payable to the drawing unit

+  In case where the balance in customers' account is not sufficient to collect, the receiving unit shall record it in the book for monitoring the unperformed request for the return of credit payment order and request customers to deposit money to their account to perform this request for return. When the required deposit is sufficiently made, accountant shall delete this request from the monitoring book and draw a credit payment order for sending to the drawing unit and make accounting entries as guided above.

+  In case where a customer can not make payment or it is impossible to identify a customer, the receiving unit shall cooperate with local government and law protecting agencies such as Police, Court, etc, to take any measure for the collection of funds. If the collection fails to proceed or fully succeed, the receiving unit shall refuse the acceptance of request for the return of credit payment order by making a notice on the refusal of the request for the return of the credit payment order and stating clearly the reasons thereof and transfer the collected funds (if any) to the drawing unit and delete the unperformed request for the return of the credit payment order from the book.

4. The adjustment of other errors

In respect of a payment order with wrong address of customer (A payment order that has been transmitted correctly to the receiving unit but nobody receives or the order receiver has account at other bank), with wrong name, account No. of payment order receiver (correct name but wrong account No. or vice versa), symbol of vouchers, of profession types, the receiving unit shall process as follows:

a. For credit (debit) payment orders that the receiving unit has received, but has not yet made accounting entries, shall be accounted to the account "Payables (receivables)", then a payment order shall be drawn to return to the drawing unit. The continuous transfer of money is strictly forbidden.

b. For performed payment orders, the receiving unit shall process as similarly as stated in Point b, Paragraph 3, of this Article.

Article 38. The cancellation and return of payment order upon customers' request.

1. The processing at the drawing unit:

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a. In case of a payment order that has not yet been performed or sent: it shall be processed in accordance with procedures for the cancellation of payment orders, the drawing unit shall send its customers a notice on the acceptance of the cancellation order and not perform that payment order (not performing any accounting entry).

b. In case of a payment order that has been performed and sent but still retained in the queue at the National payment center (because the payment account has not been provided with sufficient money), it shall be processed in accordance with cancellation procedures (accounted) of the payment order:

-  In respect of a cancellation order of a credit payment order:

+  Based on the valid request for the cancellation of customers, accountant of money transfer shall supplement essential elements of the cancellation order in accordance with applicable provisions (Form No. IBP-05) and put his secrecy code in the cancellation order.

+  The controller shall control again elements of newly drawn cancellation order and the request for cancellation of customers to ensure the accuracy and correctness. If everything is correct, the controller shall put his secrecy code in cancellation order for sending.

+  The drawing unit shall record it in the book for monitoring cancellation orders of credit payment orders that have been sent (not accounting in balance sheet).

The National payment center shall send the drawing unit a notice on the implementing result of the request for cancellation. The drawing unit shall print and verify information stated in the notice, if the cancellation is successful, both accountant of money transfer and approver shall sign for confirmation in the notice and perform following accounting entries.

Debit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office).

Credit: Appropriate account of customers (that has been deducted for previous transfer).

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-  In respect of a order of cancellation of an authorised debit payment order:

Based on the cancellation order, the drawing unit shall deduct the amount of money from account of customers that has been credited before to transfer to the receiving unit:

Debit: Following appropriate accounts:

-  "Other receivables" (in case where customers have not yet been paid)

-   "Deposit" of transfer unit (in case where customers have been paid)

Credit: Account "Collection, payment in lieu of customers" (detailed account paid to the Head office).

c. If the payment order has been dealt with and sent, the National payment center has made accounting entries, the drawing unit shall draw a request for the return of the payment order and:

-  In respect of a request for the return of a credit payment order:

+  Based on the valid request for the cancellation of customers, accountant of money transfer shall supplement essential elements of the request for the return in accordance with applicable provisions (Form No. IBP-06) and put his secrecy code in the return request.

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+  The drawing unit shall record it in the book for monitoring requests for the return of credit payment orders that have been sent (not accounting in balance sheet).

+  Upon receipt of sufficient money amount (of the cancelled credit payment order) returned by the receiving unit, the drawing unit shall account and repay to customers. Based on the credit payment order of the receiving unit, it shall delete this credit payment order in the book for monitoring requests for the return of sent credit payment orders and perform following accounting entries:

Debit: Account "Collection, payment in lieu of customers (detailed payment account the Head office).

Credit: Appropriate account of customers (that has been deducted for previous transfer)

-  In respect of a cancellation order of an authorised debit payment order:

Based on the cancellation order, the drawing unit shall deduct an amount of money from account of customers that has been credited previously in order to transfer to the receiving unit:

Debit: following appropriate accounts:

-  “Other receivables” (in case where customers have not yet been paid).

-   “Deposit of transfer unit” (in case where customers have been paid).

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2. The processing at the receiving unit

Upon receipt of a request for the return (in respect of a credit payment order), or a cancellation order (in respect of a debit payment order) from the drawing unit, the receiving unit shall verify the validity of the return request (or cancellation order) and reconcile them with the received payment order and settle in accordance with procedures for the return.

a. If any error in the request for the return is discovered, the receiving unit shall draw a notice on the refusal of the request for the return of the credit payment order (stating clearly the reasons for the refusal) to return to the drawing unit (not performing any accounting entry).

-  If the cancellation order has any error, the receiving unit shall settle it does in the case of an incoming credit payment order with errors.

b. If the request for the return (or cancellation order) is valid, the receiving unit shall settle as follows:

*  In respect of cancellation or return of an incoming payment order that has not yet been performed:

The receiving unit shall immediately send a notice on the acceptance of the return request or cancellation order to the drawing unit and settle as follows:

-  In case of cancellation of an incoming credit payment order:

+  Based on the incoming credit payment order (cancelled credit payment order), following accounting entries shall be made:

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Credit: Account "Receivables"

The money amount stated                    in  the cancelled credit                    payment order

+  Based on the request for cancellation to draw an out-coming credit payment order for return to the drawing unit, and make following accounting entries:

Debit: Account "Payables"

Credit: Account "Collection, payment in lieu of customers" (detailed payment account of the Head office)

The money amount stated                   in the credit payment order to                   be returned to the drawing unit

-  In case of cancellation of an incoming debit payment order:

+  Based on the incoming debit payment order (the cancelled debit payment order), to make following accounting entries:

Debit: Account "Receivables"

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+  Simultaneously, based on the incoming cancellation order to account:

Debit: Account "Collection, payment in lieu of customers" (detailed payment account of the Head office)

Credit: Account "Payables"

* In respect of the cancellation of a payment order that has been performed:

-  In respect of the request for the return of an incoming credit payment order:

+  If the incoming credit payment order has been performed, the receiving unit shall immediately send the request for the return to customer for notice. Only in case where the customer accepts (in writing) or pay cash, and draw a payment voucher to deduct his account for refund, the receiving unit can implement the request for the return, and perform following accounting entries:

Debit: Appropriate account (that has been credited in accordance with the cancelled credit payment order).

Credit: Account "Collection, payment in lieu of customers" (detailed payment account of the Head office)

And then, the receiving unit shall send the notice on the acceptance of the request for return to customer and the drawing unit for knowledge.

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-  In respect of an incoming cancellation order of a debit payment order:

Based on the incoming cancellation order, the receiving unit shall account:

Debit: Account "Collection, payment in lieu of customers" (detailed payment account of the Head office)

Credit: Appropriate account (that has been debited before)

And then, the receiving unit shall send a notice on the acceptance of the cancellation order to customer and the drawing unit for knowledge.

If the request for return of a credit payment order or the cancellation order of a debit payment order is attached to a correct payment order for replacing the cancelled payment order, the receiving unit shall open a book for strictly monitoring payment orders to avoid making twice payment to customers.

Article 39. Verification and response to the verification

In case where several elements in the payment order are discovered to be inaccurate (except for such elements as: bank code, the nature of debit and credit, implementing date, amount of money, type of payment), the settlement shall be made as follows:

1. Member who sends payment order must make verification to correct information or the receiving member shall make verification to request the sending member to correct information.

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a. Making message

-  Accountant imports data

-  Competent approver shall control and put his secrecy code

-  Sending message to the provincial processing center; printing the content of the message and both two persons sign in the printed message.

b. Receiving message

-  Competent approver shall check secrecy code

-  Both accountant and competent approver shall sign in the printed message.

3. Preservation of verifying documents and response to the verification

Verifying documents and response to the verification with sufficient signatures shall be kept with the original transfer order and be the basis for making payment to customers.

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1. Common errors

a. In case where hardware, software, database and communication line occur errors, operations cannot be implemented due to errors of terminal access device, the notification of errors shall be performed as follows:

-  Errors occurring at members and member units shall be informed to the provincial processing center and National payment center.

-  Errors occurring at the provincial processing center shall be informed to the National payment center, relevant members and member units.

-  Errors occurring at the National payment center shall be informed to provincial processing centers or the entire system;

b. Mode of notice transmission: through computer network, by fax or telephone

c. Members, member units and provincial processing centers shall be responsible to report and promptly settle occurring errors within the scope of their management; and coordinately settle other arising errors of the system upon request.

2. Irresistible errors

Irresistible error is the error arising from events beyond the control scope of the person who manages, conducts the system and unpredictable. The settlement shall be performed as follows:

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b. The executive committee shall consider and make decision on solution. If it is necessary to use the back-up system, the executive committee shall decide on the time for moving to the back-up system and make notification as follows:

-  Moving to the National back-up payment center: provincial processing centers; members and member units shall be informed.

-  Moving to back-up provincial processing center: other provincial processing centers and units under the management of the provincial processing center that is subject to this movement shall be informed.

c. The media of notice transmission: through computer network, by Fax, or by telephone

d. Methods, contents of copy and preservation of data for back-up system must comply with procedures as provided for in operating process of inter-bank electronic payment system.

3. The settlement of cases that cannot send or receive payment orders due to technical breakdown or failure of information transmission

a. In respect of an out-coming payment order

-  When payment order has been sent, but member units have not yet received the confirmation from the provincial processing center due to technical breakdowns, they shall implement as follows:

+  Making inquiry to accurately update the current status of the payment order at the provincial processing center.

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* Returning unfinished payment order to complete the transfer of money.

* After returning, if the payment order still can not be completely performed, member units shall draw the cancellation order (in the queue) of payment order. Based on the result of successful cancellation sent by the provincial-processing center, accountant and controller shall sign for confirmation and preserve this result in the paper. After the success of the cancellation and completion of necessary procedures, member units may decide or redraw another payment order with new accounting entries for replacing the order that has been cancelled before or for repaying to customers.

*  In case where the returned payment order is still unsuccessful and can not be cancelled, member units shall draw the minutes to state above breakdowns. Based on the reconciling result of orders transferred at the end of the day and the result of the coordinate settlement between member units and the National payment center, member units shall decide on keeping or remain accounted entries or repay money or redraw new payment order for customers.

-  Because of technical breakdowns, the out-coming reconciling table at the end of the day may not be in balance, member units shall make inquiry to the provincial processing center to update the development of different orders, and make the minutes to confirm the current status. The last result of out-coming reconciling table shall be based on the latest status of payment orders and the result of coordinate settlement between members and the National payment center.

b. In respect of incoming payment order

-  In case where some technical breakdowns make the decryption and the receipt of file of incoming payment orders impossible, members shall request the National payment center to change the status of file and go on the receipt, decryption, reexamination and the print of incoming payment orders.

c. The breakdown that makes the connection to the provincial processing center impossible.

-  In case of breakdowns of computer, modem, telephone, etc, that make member units unable to connect to the provincial processing center to get the confirmation, reconciling result and other information. Members and member units shall inform the executive committee through other means (Fax, telephone, etc) on those breakdowns. In respect of incomplete payment orders, members shall make payment to customers only when above breakdowns are overcome and the last status of payment orders is confirmed by the provincial-processing center.

d. In respect of some other special technical breakdowns

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Chapter VII.

REPORT AND DEALING WITH REPORTS

A. DAILY REPORT

Article 41. The preparation and control of reports at the BOD

1. The preparation of report on daily money transfer of entire system

After the completion of reconciliation of daily money transfer, the BOD shall make (create) a report on daily payment of entire system in form of electronic voucher, including following types:

a. Operation consolidation under each member (Form No. IBP-10)

b. Operation consolidation under the system (Form No. IBP-11)

c. Balance-sheet of money transfer (Form No. IBP-12);

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e. Consolidation of clearing processing results (Form No. IBP-14);

f. Consolidation of accounting results (Form No. IBP-15)

2. Dealing with reports:

a. Payment controller of the BOD must control again the report on daily money transfer (including electronic and paper voucher) and verify balances in accordance with applicable provisions to ensure the accuracy and correctness of report drawing steps and data reflected in forms.

b. Daily report of the entire system shall be preserved after having been completely controlled and reconciled for the correctness in accordance with provisions, and the controller of money transfer shall directly sign in the report. The preservation of daily report on money transfer of entire system shall be performed as follows:

-  For paper voucher: All reporting forms (with sufficient signatures and seal) shall be archived under applicable provisions on paper voucher;

-  For electronic voucher: Daily report on money transfer of entire system shall be archived under applicable provisions on electronic voucher.

Article 42. The preparation and processing of reports at member units participating in the IBP system

1. In respec­t of member units

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b. Report on incoming money transfe­r (Form No. IBP-17)

c. Reconciliation of out-coming money transfer (Form No. 18)

d. Reconciliation of incoming money transfer (Form No. 19)

e. Payment statement (Form No. IBP-20)

2. The settlement of reports

a. Control

-  Debit (Credit) turnover in Form No. IBP-16 must be equal to that in Form No. IBP-18.

-  Debit (Credit) turnover in Form No. IBP-17 must be equal to that in Form No. IBP-19

-  The difference between reconciling results in Form No. IBP-18 and IBP-19 must be zero.

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In the event of errors, member units shall contact with the National payment center for coordination and processing.

3. The preparation of reports at Head office of members:

a. Report on out-coming money transfer (Form No. IBP-16)

b. Report on incoming money transfer (Form No. IBP-17)

c. Reconciliation of out-coming money transfer (Form No. 18)

d. Reconciliation of incoming money transfer (Form No. 19)

e. Payment statement (Form No. IBP-20)

g. Payment statement (Form No. IBP-21);

4. Reports on daily electronic money transfer of both Head office and member units shall, after being used for reconciliation and consolidation of reports, be archived in accordance with current provisions.

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Article 43. Units shall make monthly report in accordance with provisions on current regime of reporting and information of the State Bank.

Chapter VIII.

 RIGHTS AND OBLIGATIONS OF UNITS PARTICIPATING IN THE INTER-BANK ELECTRONIC PAYMENT

Article 44. The Finance & Accounting Department

To manage, verify, and supervise the operation of inter-bank electronic payment of the State Bank.

Article 45. The Banking Operation Department

1. Being the provincial processing center

To associate with the National payment center to carry out procedures of high value and low value payment between operation centers of credit institutions.

2. Supervision and management of payment accounts

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-  Every day, at the commencement of a working day, the BOD shall determine the balance of payment account of members to perform payment activities during a day of units.

-  To settle arising money transfers of member units in case where their capital are in need of supplement.

-  To update (at the end of the day) and synchronize payment accounts in the accounting system of the BOD.

-  To update information on the development of payments accounts.

b. Through the National payment center, the BOD shall immediately and at any time, provide following information to member units:

-  The balance of payment accounts;

-  The development of requests for the transfer of money;

-  File of money transfer operations that have been settled;

-  The development of requests for clearing settlement

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-  The development of cancelled requests for the settlement.

3.  Managing the clearing settlement

a. To monitor, control the maintenance of net debt limit of members under provisions of the Governor of the State Bank.

b. To monitor, calculate and maintain the limit for payments that do not use the limit.

c. To deal with operations relating to the deposit of valuable vouchers

d. To supervise the clearing settlement in accordance with provisions stated in Article 29 of this Regulation.

4. Being a member participating in the IBP system.

To fully comply with provisions of a member participating in the IBP system as stated in this Regulation.

Article 46. The Head office of members

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2. To receive and process electronic data from the National settlement center by the end of working day. The content of data includes:

a. Accounted amount receivable (payable) to payment accounts of Head office;

b. Accounted amount receivable (payable) of each member unit, through this data, the Head office shall account and settle accounts "Collection, payment in lieu of member units".

c. The detailed description of each incoming and out-coming payment order of all member units in the system.

Article 47. Rights and obligations of members and member units

1. Members and member units shall have right:

a. To use all payment services supplied by the IBP system.

b. To request the National payment center to give the confirmation on its receipt of payment order sent by them and to supply information relating to the implementation of that payment order;

c. To request the National Payment Center to cancel the payment order in accordance with provisions stated in this Regulation;

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e. To request units to accept the compensation order for the lateness in the payment of debit transfers with valid authorization. The compensation level shall be limited within the amount to be transferred and fine for the delay in payment in accordance with provisions of current regime.

2. Members and member units shall have obligations:

a. To comply with provisions on the preparation and sending of payment order through the IBP system and to be responsible for the accuracy of data and contents relating to that payment order.

b. To coordinate with the National payment center, the provincial processing center, other members and member units to deal with errors arising during the operating process of the system and movement to the back-up system.

c. In case where the drawing unit violates provisions on the preparation, sending of payment order or data, contents in payment order are not correct leading to the lateness in the payment, the loss of money and causing other material damages, that unit shall be responsible for the damages caused by their fault;

d. To comply with provisions on fees and fee management in the IBP in accordance with Article 10 of this Regulation.

e. Not to reveal or provide information taken through the IBP system to any subject who has no relevant responsibility.

g. To take responsibility for sharing deficient amounts with other members in case where any member suffers from the lack of capital for the clearing settlement.

Article 48. Rights and obligations of the National payment center

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a. To refuse to make payment of high value payment orders, urgent payment orders, invalid orders of cancellation or refuse to transfer low value payment orders and low value cancellation orders that are invalid.

b. To refuse to make payment of high value payment orders, urgent payment orders, to make low value clearing settlement to members whose payment accounts are not provided with sufficient money;

c. To inform about members who set up, manage and adjust the limit of net debt in accordance with provisions of the State Bank;

2. Obligations of the National payment center

a. To perform valid high value payment orders, cancellation orders, to inform, upon the request, the payment order and the result to the provincial processing centers and members relating to that payment order;

b. To implement procedures in accordance with provisions for the transmission of low value payment orders, cancellation orders to the receiving units, except for irresistible cases;

c. To make verification with the provincial processing center and the drawing unit in the event of suspicion or discovery of errors in payment orders, cancellation orders with high value;

d. To reconcile payment orders of the provincial processing center and member units in the system.

Article 49. Rights and obligations of the provincial processing center

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a. To request the drawing unit to draw and send payment order or cancellation order in accordance with applicable provisions, to ensure the validity of electronic vouchers to prevent any behavior of embezzlement, abuse that causes damages to customers;

b. To return the payment order to the drawing unit, if after stipulated time, account of the drawing unit is not provided with sufficient money for making payment (credit payment order) under provisions in this Regulation;

c. To request the National payment center and other provincial processing centers to confirm their receipt of payment orders transferred by them and information relating to those payment orders.

2. The provincial-processing center shall have following obligations:

a. To inform drawing units on the implementation of payment orders and respond to information relating to those payment orders;

b. To reconcile the performed payment orders with the drawing unit and the National payment center;

c. To coordinate with the National payment center, members and member units to settle errors arising during the operating process of the system and the movement to the provision system.

Chapter IX.

Dispute and dispute settlement

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1. Settlement of disputes between members

a. When disputes occur, participating members shall solve by conciliation measure on the basis of mutual belief;

b. In case where disputes cannot be resolved through mutual conciliation, parties may request the executive committee of the IBP system to resolve. Upon the consideration of files submitted by parties, the executive committee shall make decision on the settlement or hold a meeting between parties involved in the disputes to listen to opinions of parties before making decision on the settlement.

c. In case where parties do not satisfy with settlement decision of the executive committee, they may request for the solution in accordance with provisions of applicable laws.

2. Settlement of disputes with customers

When any dispute with customers arises, requiring members and payment members shall be responsible for providing, exchanging data with each other and report to competent authorities for solution.

Article 51. Procedures and time for dispute settlement

1. In the event of error and lateness in payment, members may directly submit a complaint to the party that causes damages to them. The time limit for complaining is one month at the most from the date when the receiving unit receives payment order; Within 10 days from the date of its receipt of the complaint, complaint receiving party must explain clearly reasons for those errors and lateness.  If errors are caused by complaint receiving party, the receiving party shall be responsible for compensation for suffering party within one month from the receiving date of the complaint.

2. In case where disputing parties request the executive committee to resolve, they must submit an application for conciliation attached with necessary data to the executive committee. On receipt of request for the dispute reconciliation from relevant members and through the verification of received data, the executive committee shall carry out the dispute conciliation on the basis of satisfactory, appropriate analysis and settlement between parties. Within 15 days, after getting the decision of the executive committee, relevant members shall be responsible for the implementation of this decision.

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Chapter X.

 VIOLATIONS AND DEALING WITH VIOLATIONS

Article 52. Acts of violation

1. Operations occur many times in the queue of the National payment center due to inappropriate supervision of the balance of payment accounts or improper management payments;

2. To leak or disclose information which are indissoluble relating to the IBP system;

3. To assign unauthorized person to draw, transmit transactions through the IBP system;

4. To intentionally delay procedures for the return of payments which have been performed with errors;

5. To transfer money into account of receiver after stipulated time;

6. To be late in crediting in deposit account of the designated receiving party, although customers have received notice on their transfer of money from bank after their transfer of money;

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8. To obstruct the operation of the IBP system due to the violation of provisions and Regulation of the State Bank.

Article 53. Dealing with violations

Any act of violation of the Regulation on the inter-bank electronic payment shall, depending on the nature, seriousness, be subject to administrative punishment in accordance with the Decree on administrative punishment in banking area or be prosecuted for criminal liability and be responsible for material compensation for damages caused by them in accordance with provisions of applicable laws.

Charter XI.

 IMPLEMENTING PROVISIONS

Article 54. Implementing responsibilities

The Banking Information Technology Departments shall be responsible for compiling, providing the guidance and examining the implementation of the technical Process of inter-bank electronic payment system operation.

Heads of Departments, units of the State Bank, Head office, General Managers of the State Bank branches in provinces, cities shall, within the scope of their functions, assignments, be responsible for providing the guidance and implementing this Regulation.

General Directors, Directors of payment service suppliers shall be responsible for providing the guidance and organizing the implementation of provisions in this Regulation within their system.

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The amendment, supplement of this Regulation shall be decided upon by the Governor of the State Bank of Vietnam.

FILE ATTACHED