Headlines 22/11/2019 11:11 SA

Business scopes of transaction points of microfinance institutions to be expanded

Văn Ngọc

This is the highlight of the Circular No. 19/2019/TT-NHNN regulating business networks of microfinance institutions.

The Circular prescribes that branches and transaction offices of microfinance institutions may provide one or several services at their transaction points:

- Conduct market researches, consumer surveys and marketing activities;

- Provide counsels and instructions on establishment of savings and borrowing clienteles (unavailable in existing regulations);

- Provide clients with counsels and instructions about products, services and loan applications (unavailable in existing regulations);

- Receive loan applications, make loan disbursements and collect outstanding debts incurred from credit agreements between branches or transaction offices and clients;

- Receive a mandatory or voluntary saving deposits which is restricted to 1,000,000 dong/day from a microfinance client (compared to existing regulations under which the allowed maximum limit of each deposit is 300,000 dong);  

- Make payment on mandatory or voluntary savings to microfinance clients (unavailable in existing regulations).

The abovementioned imply that service scopes of transaction points of microfinance institutions will be expanded to a greater extent than those specified in existing regulations.

“These new regulations will help microfinance institutions better their business and provide their services for the convenience of their clients”, Ms. Nguyen Thuy Han, Legal Advocate and Admin of the Law Forum at LawSoft Co., affirmed.

The Circular No. 19/2019/TT-NHNN is entering into force on January 1, 2020.



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