DECISION

PROMULGATING THE REGULATION ON INTER-BANK ELECTRONIC CLEARING

THE STATE BANK GOVERNOR

Pursuant to Law No.01/1997/QH10 on Vietnam State Bank and the Law on Credit Institutions of December 12, 1997;
Pursuant to the Government’s Decree No.15/CP of March 2, 1993 on the tasks, powers and State management responsibilities of the ministries and ministerial-level agencies;
Pursuant to the Government’s Decree No.64/2001/ND-CP of September 20, 2001 on payment activities through payment service-providing organizations;
Pursuant to the Prime Minister’s Decision No.196/TTg of April 1, 1997 on the use of data on information carriers as accounting and payment vouchers of banks and credit institutions;
At the proposal of the director of the Accountancy and Finance Department of the State Bank,

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on inter-bank electronic clearing.

Article 2.- This Decision takes effect as from January 1, 2002.

Article 3.- The director of the Office, the director of the Accountancy and Finance Department, the director of the Banking Information Technology Department, the heads of the units of the State Bank of Vietnam, the director of the State Bank’s Transaction Bureau, the directors of the State Bank provincial/municipal branches, the general directors (directors) of banks or other organizations licensed to provide payment services shall have to implement this Decision.

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FOR STATE BANK GOVERNOR
DEPUTY GOVERNOR




Nguyen Thi Kim Phung

REGULATION

 ON INTER-BANK ELECTRONIC CLEARING
(Issued together with Decision No. 1557/2001/QD-NHNN of December 14, 2001 of the State Bank Governor)

Chapter I

GENERAL PROVISIONS

Article 1.- Governing scope

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All transferred debit amounts in inter-bank electronic clearing must be effected under prior authorization: Member banks shall have to sign debt transfer contracts with one another and notify in writing the main responsible bank before effecting the transfer.

2. Electronic money transfer; payment amounts between Vietnam and foreign countries and other international payment modes shall not be subject to this Regulation.

Article 2.- Subjects allowed to participate in electronic clearing

1. Banks and other organizations (hereinafter called banks for short) licensed to provide payment services and operating on the Vietnamese territory, which fully meet the member banks’ criteria and conditions for participating in the inter-bank electronic payment according to the regulations of the State Bank Governor, file applications for permits for participation in electronic clearing and obtain written approvals of the main responsible bank.

2. Banks other than subjects specified in Clause 1 of this Article, which wish to participate in the electronic clearing, shall have to choose one of their member banks to act as a direct representative (authorized member bank) to open a payment deposit account and effect the inter-bank electronic clearing through such bank.

Authorized member banks must make written commitments with the main responsible bank and other direct member banks on the reception of clearing documents from indirect member banks represented by them and shall have to fulfill all obligations toward such payment amounts. Authorized member banks shall have to pay material compensations if the authorization, for any reasons, cause damage to the concerned parties. Payment relationships between an authorized member bank and an authorizing bank shall be determined by these two banks according to the current regulations on payment between banks.

Article 3.- Interpretation of terms and expressions used in this Regulation

- Inter-bank electronic clearing (hereinafter called electronic clearing for short) means the transfer and payment effected through computer networks between accounts opened at banks of different systems or at branches of the same bank within a certain geographical area. By means of electronic clearing technique, banks shall, through computer networks, transfer to one another payment documents, clear mutual debt amounts and pay differences to one another.

- Bank assuming the main responsibility for electronic clearing (hereinafter called the main responsible bank for short) is a State Bank unit responsible for organizing the electronic clearing and dealing with results thereof. The main responsible bank may participate in electronic clearing like a member bank.

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- Member banks directly participating in electronic clearing (hereinafter called direct member banks for short) are banks directly connected with the computer network of the main responsible bank or the center for technical handling of electronic clearing (in cases where the center for technical handling of electronic clearing is an independent unit) to effect the electronic clearing transactions. In electronic clearing, each direct member bank shall concurrently be the payment order-sending bank (called sending bank for short) and the payment order-receiving bank (called receiving bank for short).

- An authorized member bank is a direct member bank authorized to represent one or several indirect member banks to effect electronic clearing transactions.

- Member banks indirectly participating in electronic clearing (hereinafter called indirect member banks for short) are banks effecting on-line electronic clearing transactions through one authorized member bank. Indirect member banks may be affiliates of authorized member banks or banks of other systems, which open payment deposit accounts at authorized member banks.

- Payment order means an indication in form of encoded elements of accounting documents sent by sending banks to the main responsible bank, the center for technical handling of electronic clearing and receiving banks in order to effect the electronic clearing.

- Credit transfer order means a payment order considered to be a payable amount of the sending bank to the receiving bank in the electronic clearing.

- Authorized debit transfer order means a payment order considered to be a collectible amount of the sending bank from the receiving bank in electronic clearing.

- Debit transfer order-cancelling order means a telegraph valued as a credit transfer order, made and sent by the sending bank to the receiving bank to cancel a previously sent debit transfer order (to cancel part or the whole of the money amount).

- Credit transfer order-cancelling request means a telegraph made and sent by the sending bank to the receiving bank requesting the cancellation of a previously sent credit transfer order (to cancel part or the whole of the money amount depending on each specific error), which services as basis for the recei-ving bank to make a credit transfer order for return to the sending bank after retrieving the already paid money amount.

- Electronic clearing transaction day (called transaction day for short) means a definite period of time in a working day, lasting from the beginning of the working day to the time of stopping the sending of payment orders of direct member banks according to the State Bank’s regulations.

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- Electronic clearing result sheet means a data sheet made by the main responsible bank or the center for technical handling of electronic clearing (in case it is an independent unit) for each direct member bank after a clearing transaction session ends and at the time of electronic clearing final settlement, reflecting the general collectible amounts and payable amounts on the payment orders sent or received by member banks, and showing the actual amounts to be paid or enjoyed by each member bank. The electronic clearing result sheet is considered to be one kind of accounting documents.

- Solvency of member banks means the balance on deposit accounts of direct member banks at the main responsible bank.

Chapter II

SPECIFIC PROVISIONS

Article 4.- Procedures for applying for participation and considering and approving member banks to participate in electronic clearing

1. Banks, when fully satisfying the member banks’ conditions and criteria for participation in inter-bank electronic clearing, and wishing to participate in inter-bank electronic clearing, shall have to compile and submit the following dossiers to the State Bank where they open accounts:

- An application for participation in inter-bank electronic clearing;

- Written commitment to comply with relevant regulations as soon as they become member banks participating in inter-bank electronic clearing.

2. Upon receiving the applications and dossiers of banks applying for participation in electronic clearing, the main responsible bank shall examine and verify such dossiers; if the member banks conditions and criteria for participation in the inter-bank electronic clearing are fully satisfied and the procedures for applying for participation in electronic clearing are carried out strictly according to regulations, it shall accept and admit member banks to participate in the inter-bank electronic clearing and notify in writing all member banks thereof for conducting payment transactions.

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Article 5.- Documents used in inter-bank electronic clearing

1. Book-entry documents in the inter-bank electronic clearing are payment orders and lists of electronic clearings as prescribed by the State Bank. Original documents to serve as basis for making payment orders are payment vouchers used for money transfer according to the current regulations. The compilation, control, circulation, processing, keeping and preservation of documents used in the inter-bank electronic clearing must strictly comply with the provisions of the accounting document regime applicable to banks and credit institutions, promulgated by the State Bank Governor.

2. Member banks shall have to convert the paper documents into electronic documents or vice versa when necessary in compatibility with the technical process of electronic clearing operation. The document conversion must ensure the consistency between the documents used as conversion basis and the converted documents, the conformity with the set forms and legality of documents.

3. Sending banks (including direct member banks and indirect member banks) shall have to preserve and keep the valid payment documents which are used as basis for making payment orders in strict compliance with the current regulations.

Article 6.- Transaction time in electronic clearing

1. The time of commencing transactions, the time of stopping the sending of payment orders by member banks, the time of handling of an electronic clearing session and the time of final settlement of electronic clearing of a transaction day shall be prescribed by the main responsible bank on the following bases:

- The handling capability of the center for technical handling of electronic clearing and the requests of direct member banks;

- The connection of the computer network of the electronic clearing system with other relevant professional banking operations of direct member banks.

2. When there is a change in the time of electronic clearing transaction, the main responsible bank shall promptly notify the direct member banks thereof.

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1. When being transmitted via the computer network, the electronic clearing data must be encoded and subject to confidentiality-keeping measures according to the current regulations on electronic documents and other relevant regulations on information transmission and data processing through the computer network in banking activities promulgated by the State Bank.

2. The main responsible bank or the center for technical handling of electronic clearing (in cases where it is an independent unit) and the member banks shall have to comply with the regulations on modes of transmitting, receiving and processing data in the electronic clearing. The modes of transmitting, receiving and processing data in electronic clearing shall be prescribed by the main responsible bank or the center for technical handling of electronic clearing after consulting member banks and must accord with regulations on transmission, reception and processing of data on money payment and transfer, promulgated or recognized by the State Bank.

3. In case of a technical problem, transmission error or other force majeure circumstances, which render the transmission and reception of electronic clearing data via the computer network impossible, the main responsible bank or the center for technical handling of electronic clearing (in cases where it is an independent unit) and member banks shall have to devise appropriate remedial measures; if conditions permit, measures of transferring and receiving data directly on information-carrying objects (magnetic tapes and discs, etc.) may be applied according to the current regulations of the State Bank and at the same time, all remedial measures must be sought to overcome the technical problem as soon as possible.

Article 8.- Ensuring of safety for computer systems, facilities, equipment and database in service of electronic clearing activities

1. The main responsible bank and member banks must lay down strict regulations on installation, use, preservation and maintenance of facilities, equipment and computer programs in service of electronic clearing activities under their respective management.

2. The main responsible bank and member banks must have their own reserve computer systems, facilities, equipment and databases for electronic clearing activities and shall have to organize the keeping of reserve data together with data in current use. Reserve computer systems, facilities, equipment and database must be located at safe places separate from the official operating systems and there must be concrete use plans to ensure safe and uninterrupted electronic clearing activities.

Article 9.- Confidentiality in electronic clearing

1. The main responsible bank and each member bank shall have to prescribe appropriate confidentiality-keeping measures to be applied within their respective units.

2. The main responsible bank shall have to prescribe electronic autographs to be used for protection and control of electronic clearing data when such data are transmitted and/or received via the computer network between the main responsible bank and direct member banks. In case of necessity, the main responsible bank may additionally prescribe other confidentiality-keeping measures to ensure the safety of already encoded document elements.

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4. Provisions on electronic autographs and computer passwords in electronic clearing in Clauses 2 and 3 of this Article must be compliant with the current regulations of the State Bank on formulation, allocation, use, maintenance and management of electronic autographs and computer passwords in electronic money payment and transfer.

Article 10.- Handling at electronic clearing sessions

1. At the time of clearing handling prescribed for each electronic clearing payment session, the center for technical handling of electronic clearing (if it is an independent unit) or the main responsible bank shall:

- Make clearing handling of valid payment orders already received from member banks.

- Make and send electronic clearing result sheets to serve the control, comparison and cost-accounting at the main responsible bank and direct member banks according to the State Bank’s regulations.

2. The main responsible bank shall base itself on electronic clearing result sheet to make payment and accounting according to payable or enjoyable differences of each direct member bank.

3. Upon receiving clearing results sent from the main responsible bank or the center for technical handling of electronic clearing, direct member banks shall have to control or compare in a tight manner payment orders and electronic clearing results as prescribed before handling or accounting.

Article 11.- Final settlement of electronic clearing

1. Final settlement of electronic clearing is the final electronic clearing handling on a transaction day and at the prescribed time after the main responsible bank and member banks complete the accurate comparison of collectible and payable amounts and actual amounts to be paid or enjoyed by each member bank on such transaction day. In cases where the main responsible bank and member banks have not yet dealt with errors and data disparity before the prescribed time of final settlement, the main responsible bank may set back the final settlement time of the transaction day and notify all member banks thereof so that appropriate remedial measures can be applied.

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- Handle by clearing and adjusting payment orders of direct member banks, which have supplemented enough capital sources to offset deficits arising in electronic clearing.

- Return or cancel payment orders which are beyond the solvency of direct member banks at the main responsible bank.

- Send clearing final settlement results to direct member banks.

- Base itself on the already readjusted clearing final settlement results to conduct the accounting, making debit and credit entries for direct member banks according to actual amounts to be paid or enjoyed for the last time on the transaction day. After completing the final settlement, its clearing accounts must have a zero balance.

3. Direct member banks shall have to:

- Strictly inspect and compare according to regulations their payment orders, collectible, payable or enjoyable amounts for the last time on the transaction day with the electronic clearing final settlement results received before the handling and accounting.

- If the compared amounts match, they shall send certification telegraphs to the main responsible bank or the center for technical handling of electronic clearing (if it is an independent unit). In cases where errors or mistakes are detected, they shall have to make prompt inspection and check and coordinate with the main responsible bank, the center for technical handling of electronic clearing and the concerned member banks in readjusting them according to regulations.

- After the accounting of actual amounts to be paid or enjoyed for the last time on the transaction day according to clearing payment final settlement results is completed, the clearing accounts of direct member banks must have a zero balance.

Article 12.- Measures to prevent and deal with cases of lack of solvency of direct member banks in electronic clearing

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2. From the time of stopping the sending of payment orders to the time of making electronic clearing final settlement, direct member bank(s) with insufficient solvency shall have to apply measures to seek sources for offsetting their deficits.

3. In cases where a direct member bank with insufficient solvency, upon making electronic clearing final settlement or after a notified period of time, still fails to create a source to offset deficit in its clearing, the main responsible bank may return or cancel (according to the technical process of inter-bank electronic clearing operation) payment orders beyond this bank�s solvency and shall suspend its clearing participation if such a situation occurs thrice consecutively, and at the same time notify such to the concerned member banks.

Article 13.- Control and comparison in electronic clearing

1. The main responsible bank or the center for technical handling of electronic clearing (in cases where it is an independent unit), and direct member banks shall have to strictly observe regulations on control and comparison in electronic clearing operation, with a view to ensuring accurate and consistent figures, detecting and promptly handling errors.

2. Direct member banks, the main responsible banks or the center for technical handling of electronic clearing (in case according to regulations it is an independent unit) shall have to strictly inspect electronic autographs, passwords and other secret signs (if any), payment orders, electronic clearing result sheets and other relevant documents used in electronic clearing.

3. The main responsible bank and direct member banks shall have to regularly inspect and compare figures of deposit accounts of member banks at the main responsible bank.

4. The main responsible bank shall calculate, strictly control and compare results of each time of handling the electronic clearing on the transaction day, thus ensuring accurate and consistent figures.

Article 14.- Organization of accounting, and handling and readjusting of errors in electronic clearing

1. Organization of accounting: The main responsible bank and member banks shall have to strictly observe the accounting regime in electronic clearing prescribed by the State Bank.

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2. Errors and readjustment thereof: Upon detecting errors or disparity of figures in electronic clearing (collectively referred to as errors), the main responsible bank or the center for technical handling of electronic clearing (in case it is an independent unit) and the concerned member banks shall have to devise measures to deal with and readjust them according to regulations, so as to ensure the accuracy and consistency of figures and safety of assets, not to let them adversely affect electronic clearing activities and cause damage to clients. The readjustment of errors in electronic clearing must ensure the following principles:

a/ Strict compliance with regulations on and methods of readjusting errors in accountancy and electronic clearing. Errors arising in a certain process shall be corrected and readjusted in such process. It is strictly prohibited to arbitrarily readjust figures and correct errors.

b/ Individuals and units that cause errors or violate the principles and regulations on error readjustment shall, depending on the nature and seriousness of their violations, be disciplined, administratively handled and liable to pay material compensations for damage caused by them to the concerned parties according to the current law provisions.

Article 15.- Cancellation of payment orders

1. At the time of final settlement, the main responsible bank may return or cancel direct member banks payment orders, which are ineligible for payment. In these cases, direct member banks shall have to unconditionally accept the returned or canceled payment orders.

2. Prior to the time of final settlement, the payment process under a payment order may be ceased by a cancellation order (for cancellation of authorized debit transfer orders) or a cancellation request (for cancellation of credit transfer orders) of the sending bank. A cancellation order or cancellation request of the sending bank shall be valid only in the following specific cases where:

- Authorized debit transfer order shall be canceled only when the sending bank has not yet paid money to clients under wrong order or it has retrieved the already paid amount.

- Credit transfer order shall be canceled only when the receiving bank has not yet made credit entry to client’s account or though it had made credit entry to the client’s account, but the latter has returned it.

Article 16.- Regulations on charges in electronic clearing

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a/ Charge for participation in electronic clearing payment, which is a lump-sum money amount paid by banks before being admitted as direct member banks. Such a charge shall be prescribed by the Central State Bank or proposed by the main responsible bank and approved by the Central State Bank.

b/ Annual charges are money amounts annually paid by direct member banks to maintain the system’s operation. The application of annual charges shall be decided by the main responsible bank after consulting with the direct member banks.

2. The main responsible bank and the center for technical handling of electronic clearing (in case it is an independent unit) are entitled to collect electronic clearing service charges from direct member banks according to the current regulations of the State Bank on collection of via-bank payment service charges.

3. Direct member banks are entitled to collect electronic clearing service charges from clients, indirect member banks and concerned banks according to the current regulations of the State Bank on collection of via-bank payment service charges.

Chapter III

RIGHTS AND RESPONSIBILITIES OF SUBJECTS PARTICIPATING IN ELECTRONIC CLEARING

Article 17.- Rights and responsibilities of direct member banks

1. Direct member banks have the following rights:

- To use electronic clearing service and related services prescribed and provided by the main responsible bank or the center for technical handling of electronic clearing payment.

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- To reject the following cases: invalid payment orders, orders with wrong addresses; non-authorized or over-authorized debit transfer orders; requests for cancellation of credit transfer orders when accounts of individuals or units receiving payment orders have not enough money or cannot retrieve money.

- To request the main responsible bank to notify balance and operation of their deposit accounts at the main responsible bank.

- To claim compensations for damage caused to them by faults of the main responsible bank or other member banks. The compensation level shall be limited within the payable amount plus fine for late payment, calculated on payable amount multiplied by the late payment fine interest rate applied according to the current regulations.

2. Direct member banks have the following responsibilities:

- To ensure the solvency to promptly and fully settle their payable amounts in electronic clearing (as well as those for indirect member banks they are representing).

- To promptly and fully pay charges in electronic clearing as prescribed.

- To ensure safety for the computer systems, facilities, equipment and databases in service of electronic clearing activities under their respective management. To strictly observe all regulations on data transmission, reception and processing as well as confidentiality in electronic clearing.

- To be subject to inspection conducted by the main responsible bank or the center for technical handling of electronic clearing payment regarding the observance of regulations on ensuring safety for computer systems, facilities, equipment and databases in service of electronic clearing activities and regulations on confidentiality in electronic clearing.

- To be responsible for the truthfulness, accuracy and completeness of payment orders, lists and relevant documents compiled by themselves.

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- To inquire into the sending banks, the main responsible bank and the center for technical handling of electronic clearing payment when detecting errors, doubtful or unclear details on received payment orders.

- To certify and answer inquiries about payment orders at the requests of the concerned parties.

- To make accurate, prompt and complete accounting of valid payment orders already received.

- To immediately notify beneficial individuals or units, and units with payment obligation of the forwarded payment orders as well as the handling results. To be liable to make payments to receiving individuals or units as soon as they accept payment orders.

- To notify individuals or units receiving payment orders of detected erroneous payment or overpayment, so that they can promptly apply the prescribed measures to retrieve the wrongly paid or overpaid amounts.

- To pay compensations for damage caused by or fines for, their errors and delays. The compensation levels for transferred money amounts shall be limited within payable amounts plus fines for delayed payment according to the current regulations.

- Even when they withdraw from electronic clearing, direct member banks shall still be responsible for all electronic clearing transactions already conducted by them (including their payments and payments made under authorization of indirect member banks) during the period of their electronic clearing participation.

Article 18.- Rights and responsibilities of the main responsible bank

1. The main responsible bank has the following rights:

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- To collect charges in electronic clearing as prescribed.

- To prescribe time for transaction and handling of electronic clearing results.

- To deduct part of payment deposit accounts of direct member banks to offset payable differences according to electronic clearing results. To apply other measures prescribed by the State Bank to prevent and deal with cases of lack of solvency of direct member banks.

- To return or cancel payment orders beyond the solvency of direct member banks at the time of electronic clearing final settlement.

- To decide on sanctions against violations committed by direct member banks in electronic clearing according to its competence provided for by the State Bank.

2. The main responsible bank has the following responsibilities:

- To work out plan on organization of electronic clearing; to disseminate and provide guidance and organize training courses on electronic clearing operation for direct member banks.

- To ensure safety for computers, facilities, equipment and databases in service of electronic clearing activities under their respective management; to strictly observe regulations on reception and processing of data in electronic clearing.

- To strictly and fully observe regulations on confidentiality in electronic clearing.

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- To manage and supervise the solvency of direct member banks; to account electronic clearing results in an accurate, prompt and complete manner.

- To put forward measures and organize regular and irregular inspections and supervisions of the center for technical handling of electronic clearing and direct member bank regarding their observance of regulations on ensuring safety for computer systems, facilities, equipment and databases in service of electronic clearing activities, as well as regulations on confidentiality in electronic clearing.

- To pay compensations for damage caused by or fines for, their errors and delays. The compensation levels shall be limited within payable amounts plus fines for delayed payment according to the current regulations.

3. Other rights and responsibilities of the main responsible bank:

a/ When participating in electronic clearing as a direct member bank, the main responsible bank shall have to comply with regulations applicable to direct member banks.

b/ When the main responsible bank concurrently assumes the role of the center for technical handling of electronic clearing, it shall also have the following rights and responsibilities of the center for technical handling of electronic clearing:

- To strictly and fully observe regulations on ensuring safety for computer systems, facilities, equipment and databases in service of electronic clearing activities, as well as regulations on confidentiality in electronic clearing.

- To prescribe and guide modes of transmitting, receiving and processing data between the section for technical handling of electronic clearing and direct member banks as well as the main responsible bank.

- To ensure that the archival of electronic clearing data is safe and timely.

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- To conduct the inspection, control and comparison in electronic clearing as prescribed. To make inquiries and answer inquiries into direct member banks and the main responsible bank regarding errors and disparity of relevant figures.

- To conduct inspection and supervision of direct member banks regarding their observance of regulations on ensuring safety for computer systems, facilities, equipment and databases in service of electronic clearing activities.

- To pay compensations for damage caused by or fines for, their errors and delays. The compensation levels for the transferred money amounts shall be limited within payable amounts plus fines for delayed payment according to the current regulations.

Chapter IV

HANDLING OF VIOLATIONS IN ELECTRONIC CLEARING

Article 19.- Violations and handling thereof

1. Violation acts in electronic clearing include:

a/ Failing to strictly observe regulations relevant to the electronic clearing operation promulgated by the State Bank.

b/ Direct member banks fail to maintain sufficient solvency for timely and full payment of payable amounts at the time of electronic clearing final settlement under all payment orders they send and receive on a transaction day.

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2. Handling of violations:

a/ Individuals and organizations that commit acts of violating the provisions in Clause 1 of this Article shall, if causing material damage to their clients or other member banks, have to pay compensations to the damage sufferers.

b/ Suspension of participation in electronic clearing activities:

- Temporary suspension: A direct member bank which violates one of the provisions in Clause 1 of this Article thrice consecutively shall be temporarily suspended from participation in inter-bank electronic clearing for at least 6 months for rectification. After 6 months, if it still wishes to participate in electronic clearing, this bank shall have to file written application to the main responsible bank for consideration.

- Indefinite suspension: If it violates the provisions in Clause 1 of this Article for the fourth time, a direct member bank shall be indefinitely suspended from participation in electronic clearing and have its name deleted from the list of banks participating in electronic clearing.

Chapter V

IMPLEMENTATION PROVISIONS

Article 20.- The heads of the departments, bureaus and units attached to Vietnam State Bank, the directors of the State Bank’s provincial/municipal branches shall, within the ambit of their functions and tasks, have to guide, disseminate, and supervise the implementation of this Regulation.

The general directors (directors) of banks and other organizations licensed to provide payment services shall have to organize and direct the implementation of this Regulation within their respective systems in strict compliance with the provisions of this Regulation.

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FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR




Nguyen Thi Kim Phung