Circular 22/2015/TT-NHNN supply and use of cheques

• Official number: 22/2015/TT-NHNN
• Legislation Type: Circular
• Organization: The State Bank
• Signer: Nguyen Toan Thang
• Issued Date: 20/11/2015

THE STATE BANK OF VIETNAM -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ------------
No. 22/2015/TT-NHNN	Hanoi, November 20, 2015

CIRCULAR

ON SUPPLY AND USE OF CHEQUES

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

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Negotiable Instruments 2005;

Pursuant to the Government's Decree No. 156/2013/ND-CP dated November 11, 2013 defining the functions, tasks, entitlements and organizational structure of the State bank of Vietnam;

Pursuant to Government's Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payments;

At the request of the Director of Payment Department;

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Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular sets forth supply and use of cheques at banks and foreign bank branches operating within Vietnam’s territory.

Article 2. Regulated entities

1. The State Bank of Vietnam, commercial banks, banks for social policies, cooperatives banks, foreign bank branches (hereinafter referred to as banks), people's credit funds, microfinance institutions, and other organizations as prescribed by the State Bank of Vietnam (hereinafter referred to as the State Bank).2. Entities that use cheques and relate to the use and payment of cheques, including: drawer, drawee, endorser, endorsee, guarantor, principal, payee, legal representative thereof and others related to the use of cheques.

Article 3. Interpretation of terms

For the purposes of this Circular, the following term has the meaning attributed as follows:

1. “cheque” means a financial instrument made by a drawer, which orders a drawee to pay a specific amount of money from the drawer's account to the payee.

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3. “drawee” means a bank which opens a checking account for a drawer and honour the monetary amount on a cheque to the order of the drawer.

4. “payee” refers to one of the following:

a) the receiver of the specified amount on the cheque designated by the drawer;

b) the endorsee under methods of negotiation as per this Circular;

c) the bearer if the cheque indicates that “pay to the bearer”

5. “relevant entities” refer to those who engage in the cheque payment by endorsing the cheque as a drawer, endorser, guarantor, and certifier.

6. “collecting banker” means a bank, people's credit fund, microfinance institution or other entity under regulations of the State Bank which collects the proceeds of the cheque in favour of the payee.

7. “guarantor” means an entity which undertakes full payment or partial payment of the amount specified on the cheque to the payee when due in case the drawer fails to pay or pay insufficiently the amount specified on the cheque.

8. “principal” means an entity whose payment to the payee is secured by the guarantor.

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10. “issue of cheque” means that a drawee makes a cheque out to the payee for the first time.

11. “negotiation of cheque” means that the payee negotiates the cheque by endorsing it and transferring it to the endorsee. 

12. “clearing house” refers to the State Bank or an entity authorized by the State Bank to assume the prime responsibility for clearing bank exchange cheques and paying financial liabilities incurred from the cheque clearing to authorized banks and payment service suppliers of the State Bank.

13. “cheque supplier” means a drawee.

14. MICR means Magnetic Ink Character Recognition.

Article 4. Drawing and clearing of cheques made out in foreign currency

1. Drawing cheques made out in foreign currency:

Cheques made out in foreign currency shall be drawn in accordance with law on foreign exchange management.

2. Clearing cheques made out in foreign currency:

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b) A cheque made out in foreign currency, in case the last payee is not allowed to receive foreign currency in accordance with law on foreign exchange management, shall be cleared with the specified amount on the cheque in Vietnamese dong according to the exchange rate quoted by the State Bank at the clearing time or the exchange rate quoted by the bank which performs the clearing at the clearing time.

Article 5. Right of recourse in case of dishonour of cheque

1. If the amount on a cheque is fully or partially dishonoured as prescribed in this Circular, the payee may exercise the right of recourse concerning the amount he/she is legally entitled to. Subject matter, amount, method and procedure for recourse are specified in Article 48 through Article 52 of the Law on Negotiable Instruments.

2. The endorser who already paid the endorsee may exercise the right of recourse against the drawer or the prior endorser.

Chapter II

PARTS OF A CHEQUE AND DRAWING CHEQUES

Article 6. Parts of a cheque

Parts of a cheque are stipulated in Article 58 of the Law on Negotiable Instruments.

Article 7. Making and drawing cheques

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3. The designation of the payee may be written following one of three methods specified in clause 1 Article 60 of the Law on Negotiable Instruments.

4. The amount written in figures on the cheque must be equal to the amount written in words on the cheque.

The numerical amount on a cheque is written in Arabic numerals: 0, 1, 2, 3, 4, 5, 6, 7, 8, 9; the decimal point (.) must be put after the digit in thousands place, millions place, billions place, thousands of billions place and millions of billions place; and comma (,) must be put after the digit in ones place.

Amount in words must be clearly written: the first letter of the amount must be in uppercase and close to the beginning of the first line, skipping a line and spacing out between words are not allowed, no more words are added (different lines) between the two consecutive words on the cheque.

5.  Place of payment is the place, designated by the drawee, where the cheque is paid. If the place of payment is not indicated on a cheque, that cheque may be paid at any business location of the drawee.

6. Drawing date is the date the drawer writes on the cheque and it must be written in figures.

7. Signature of a drawer is a hand-signed signature on the cheque of the person who has rights and obligations as to the cheque or the person who is authorized to make and draw the cheque. The signature of the drawer must be written by a fountain pen or ball-point pen and matched with the specimen of signature registered at the drawee bank, together with the full name and seal (if any) of the corporate if the cheque is signed by the legal representative of the corporate or signed by digital signature (in case of electronic-based clearing).

8. Write or stamp the words “trả vào tài khoản” (account payee) on the face of the cheque below the work “Séc” (cheque) to instruct that the cheque may only be deposited directly to a checking account of the payee, drawer, or endorser and cannot be presented for cash.

9. The drawer or endorser will cross on the face of the cheque two parallel lines from the top left-hand corner to the bottom right-hand corner of the cheque to instruct that the cheque may only be deposited directly to a bank or the payee which has a checking account opened by the drawee.

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11. If the drawer is authorized by the checking account holder, the account holder must complete procedures for notification, registration of specimen signature and authorized overdraft limit (if any) with the drawee.

Article 8. Rights and obligations of a drawer

1. A drawer may issue a stop payment order by notifying the drawee in writing of stopping payment on a cheque when it is presented for payment. The stop payment order takes affect only if, after the period of presentment for payment as prescribed in clause 1 Article 19 hereof, the payee or the person authorized by the payee fails to present the cheque to the drawee for payment.

2. The cheque must be drawn in accordance with Article 7 hereof.

3. Ensure there are sufficient funds in the account on which all of specified amount on the cheque was drawn to the payee if the cheque is presented within the period of presentment for payment. The funds consist of the balance of the checking account plus the authorized overdraft limit that the drawer may use as agreed upon with the drawee.

4. If a cheque is dishonoured since it has been made improperly, the drawer, upon request of the payee, is obliged to draw another cheque in substitution of that cheque within the same date on which the request has been made or in the next business day.

5. If a cheque is fully or partially dishonoured because of non-sufficient funds, the drawer must reimburse the specified amount on the cheque without any condition.

Chapter III

SUPPLY OF CHEQUES

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1. Cheque suppliers have their discretion to design blank cheque templates supplied by themselves in accordance with Article 58 and Article 59 of the Law on Negotiable Instruments.

2. To ensure that cheques are successfully cleared through the clearing house, printing paper, size of cheques, parts and locations of parts on a blank cheque must be design in accordance with Appendix 01a and 01b hereto. 

Article 10. Procedures for registration of blank cheque templates

1. A commercial bank, bank for social policies, cooperatives bank, or foreign bank branch shall, prior to printing and supply of blank cheques to their clients, complete the registration of blank cheque template with the State Bank. The cheque supplier shall submit, in person or by post, to the Payment Department affiliated to the State Bank 01 set of application for registration of blank cheque template, including:

a) An application form for registration of blank cheque template using Appendix 08 hereto;

b) A design of blank cheque, containing: size, color, detailed parts of a blank cheque;

c) A copy from master register or a certified true copy or a non-certified copy presented together with the original for comparison of the operation license of the cheque supplier (for initial registration) or a non-certified copy (for registration for second time onwards).

2. Within 5 working days after receiving a duly complete application, the State Bank shall issue a certification of registration of blank cheque template of the cheque supplier.

Article 11. Printing of blank cheques and notification of blank cheque template

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2. The cheque supplier has discretion to choose the printing facility to sign a contract for printing blank cheques on the basis of self-responsibility for ensuring the technical and anti-counterfeiting elements of their blank cheques.

3. The cheque supplier is responsible for notifying concerned parties of their blank cheque template.

4. The cheque supplier is responsible for stipulating and agreeing with the cheque users about the conditions and terms of use of the cheques they supply:

a) Supply a given number of blank cheques to clients, in conformity with the needs and reliability of payment of each specific client;

b) Formulate processes and procedures to ensure safety and designate responsibilities of related parties in storage, preservation and rotation of blank cheques and cheques during the clearing process within the cheque supplier;

c) Stipulate, instruct and raise awareness of the receivers of blank cheques of their responsibilities for the maintenance of blank cheques and requirements for the use of cheques.

5. The cheque supplier is responsible for looking up information about the applicant for blank cheque for the first time at the National Credit Information Center prior to decision whether to supply blank cheques to that applicant.

6. The cheque supplier shall promptly send debit and credit alerts to customers who open checking accounts according to the method and time of debit and credit alert as agreed between the supplier and the customer as per the law.

7. The cheque supplier must guide customers to use the cheque payment service they provide; answer or promptly handle inquiries and complaints of organizations and individuals that use cheque payment services within the scope of their obligations and powers.

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Article 12. Procedures for supplying blank cheques

1. The checking account holder or his/her authorized person may submit an application for supply of blank cheques to a cheque supplier.

2. On receiving such an application for supply of blank cheques, the cheque supplier shall verify if the applicant meets all the eligibility requirements.

3. Before supplying blank cheques to the applicant, the cheque supplier shall have to print, stamp or pre-write the following parts of the cheque: serial number, name of drawee, name of drawer; elements on the MICR (if any). The place of payment (if any) shall be printed, stamped or pre-written on the blank cheque.

4. The cheque supplier must monitor the name, address and checking account number of the receiver of blank cheques, quantity and symbol (serial number and cheque number) on the supplied cheques.

Article 13. Responsibilities of a blank cheque supplier

1. The cheque supplier must tally the number of cheques, the accuracy of the parts on the supplied blank cheques.  Any error must be reported to the cheque supplier for replacement of another cheque.

2. Once a blank cheque is received, if there is any error or the cheque is misused, the receiver of the blank cheque shall take full responsibility for any damage occurred.

Chapter IV

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Article 14. Negotiation of a cheque

1. When a cheque is endorsed, the continuity of the endorsement signatures is shown as follows: in the first negotiation of the cheque, the endorser must be the payee whose name is written on the face of the cheque; in the second negotiation of the cheque, the endorser must be the endorsee of the first negotiation; and as above until the last negotiation.

2. The payee of the cheque through endorsements is the last endorsee in the chain of continuous endorsement signatures as prescribed in clause 1 hereof.

3. The drawee shall, when honouring a cheque that has been negotiated by multiple endorsements, check the continuity of the chain of endorsement signatures to ensure that the specified amount on the cheque will be paid to the right payee.

Article 15. Collection of a cheque

1. In order to receive the specified amount of a cheque, the payee may endorse a collecting banker, under a given agreement in writing, to collect proceeds of the cheques on behalf of the payee. The collecting banker has discretion to pay the endorser either at sight or after the drawee has honoured the cheque on the basis of their own responsibility for payment and recourse of the cheque in case of dishonoured cheque.

2. In case where the collecting banker cannot present the cheque for payment in person at the place of payment, the collecting banker may authorize an agent present such cheque for payment.

Chapter V

SECURITY OF PAYMENT OF CHEQUES

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1. Requirement for certification of a cheque

To obtain a certified cheque, the drawer must have sufficient funds on the his/her checking account or has been approved by the drawee, in case of non-sufficient funds, an authorized overdraft limit to ensure that the cheque will be honoured, and then request the drawee to certify the cheque.

2. Procedures for certifying a cheque

a) Certification of cheque using deposit

The drawer shall make and submit to the drawee a completely filled cheque with signature and seal (if any) on the face of the cheque together with a payment order (with a specified amount required by the drawee to ensure sufficient funds for accounting and keeping).  Once the drawee verifies that the cheque meets all requirements prescribed in clause 1 hereof, the drawee shall bear the signature and seal of the drawee and the words “Bảo chi” (Certified) on the face of the cheque, and then proceed as follows:

- One copy of payment order as the proof of debit to the checking account of the drawer, and credit to the deposit account to secure the cheque of the drawer will be honoured by the drawee.

- One copy of payment order as the letter of debit to be sent to the drawer;

b) Certification of cheque by temporary freezing of the funds on the checking account

The drawer shall make and submit to the drawee a completely filled cheque with signature and seal (if any) on the face of the cheque. Once the drawee verifies that the cheque meets all requirements prescribed in clause 1 hereof, the drawee shall temporarily freeze the funds on the checking account of the drawer as so agreed in writing between the drawer and the drawee, the temporarily frozen amount shall be the same as the specified amount of the cheque, and then bear the signature and seal of the drawee and the words “Bảo chi” (Certified) on the face of the cheque.

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4. If the cheque has not been presented for payment upon expiry of validity period, the drawer may order the drawee to unfreeze the funds on the checking account; or terminate the use of deposit to secure the payment of the cheque; such an order is also deemed a stop payment order of such cheque.

Article 17. Guarantee of a cheque

1. To guarantee a cheque, the guarantor will indicate the word “bảo lãnh” (guarantee), amount, name, address, signature of the guarantor and name of the principal on the face of the cheque or on the attached document.

2. In case of guarantee without a specified name of the principal, it shall be deemed a guarantee for the drawer.

Article 18. Rights and obligations of a guarantor

1. The guarantor may cancel the guarantee only when the cheque does not have all required parts prescribed in Article 6.

2. The guarantor is obliged to pay the cheque with the guaranteed amount if the principal has not paid or has not paid completely when the cheque is due.

3. After performing the guarantee obligations, the guarantor may take over the rights of the principal as to relevant entities, dispose of the collateral of the principal and require the principal, the drawer and the person assuming joint liability to reimburse the paid amount.

4. The guarantee of cheques shall comply with this Circular and other relevant laws and regulations.

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PRESENTMENT AND PAYMENT OF CHEQUES

Article 19. Presentment of a cheque

A presented cheque is a paper cheque (document-based clearing) or electronic data of the cheque (electronic-based clearing) which is transferred to the place of presentment as prescribed in Article 20.

1. The period of presentment for payment of the cheque is 30 days after its drawing date (excluding the time of force majeure events or objective hindrance).

2. If a cheque is presented after the period of presentment for payment but not exceeding 06 months after the drawing date, the drawee may honour this cheque if the drawee does not receive a stop payment order from the drawer and the drawer has enough funds on the checking account.

3. The payee may present the cheque for payment via registered post of the public postal network. The period of presentment shall be determined according to the postmark of the sending post office.

Article 20. Place of presentment

The payee or collecting banker may present a cheque at any of the following:

1. The place of payment specified in the cheque.

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3. If the cheque is presented by a payment service supplier, apart from the mentioned places of presentment, that payment service supplier may present the cheque at the clearing house, if such supplier is a member of the clearing house.

Article 21. Payment of a cheque by the drawee

When a cheque is presented for payment within the period and place of presentment prescribed in Article 19 and Article 20 of this Circular and the drawer has sufficient funds to pay the cheque, the drawee shall check the legality and validity of the cheque and pay the cheque for the payee or payee’s authorized person within the date of presentment or the subsequent working day.  The drawee shall pay a cheque as follows:

1. The drawee shall receive and verify the cheque as follows:

a) On receiving copies of cheque deposit slip and the cheques submitted by the payee or the collecting banker, the drawee must verify if all the parts of the cheque are legal and valid.

In case of any error, the drawee shall return the cheque to the payee or collecting banker and require another cheque deposit slip in conformity with the eligible cheques; if no error is found, the drawee shall acknowledge the cheques received at the request of the payee or collecting bank;

b) If the cheque does not have the word “trả vào tài khoản” (account payee), the drawee may make the payment in cash at the request of the payee at any of places of presentment in Article 20 unless the law requires non-payment in cash.

The receiver of the cash must specify his/her full name, unexpired ID number or passport number or number of alternate document in the section intended for cash payment on the back of the cheque;

c) Any person who violates regulations on control of cheques which leads to misuse or loss of property, the violator shall take responsibility for compensation.

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a) The cheques as proof of debit to the checking account of the drawer or the deposit account to secure the payment of the cheque;

b) The copies of cheque deposit slips as proof of credit to proper accounts such as: checking account of the payee (if the payee opens the account at the drawee bank); cash (if the payee receives cash); clearing and deposit to the State Bank (in case of clearing and deposit to the State Bank); the account of the collecting banker (in case of collection by agent), etc.  And further make a proper proof of payment for clearing (if the collecting banker has joined the clearing system) or make a proof of fund transfer to the collecting banker to credit the account of the payee;

c) Procedures for payment and transfer of documents in a case where the drawer and the payee open the checking account at the same branch or two branches of the same bank which has an internet banking system shall be specified by the Director General (Director) in accordance with this Circular.

Article 22. Handling an NFS cheque

1. An NSF (non-sufficient fund) cheque is a cheque that cannot be honoured, although it is presented in the validity period, because there are insufficient funds in the account of the drawer to cover the amount of the cheque. Handling an NFS cheque:

a) The drawer shall notify the drawer of the NFS cheque and keep the details of that drawer in the file. Such notification may be made by phone, fax or other appropriate means.

The drawer shall also notify the entity which presents the cheque (the payee or the collecting banker) of such NFS cheque in the presentment date or the subsequent working day by a mean as agreed between two parties.

Within 5 working days after notifying the drawer of the NFS cheque, the drawee shall further notify the National Credit Information Center of the NFS cheque using the form of Appendix 07 hereto. National Credit Information Center shall provide information about such NFS cheque for the drawee on the same day of receipt of such a notification or subsequent working day;

b) The payee may, by himself/herself or through the collecting banker, require the drawee to:

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- Partially pay on the cheque, not exceeding the amount as agreed with the drawee, and make a certification of dishonour as to the remaining amount (in this case, the payee shall make a collection order using the form of Appendix 03 hereto);

c) On receiving a collection order to pay partial amount of the cheque from the payee, the drawee shall:

- Debit to the checking account of the drawer and credit to a proper account (the checking account of the payee; cash, clearing account; deposit account at the State Bank, account of the collecting banker, etc.).

- Make a proof of clearing (if the collecting banker has joined the clearing system) or make a proof of fund transfer to the collecting banker to credit the account of the payee; and

+ Make a certification of dishonour using the forms of Appendix 05 and 06 hereto as to the dishonoured amount of the cheque and mark it  “đã thanh toán...(số tiền)..., từ chối... (số tiền)..., ngày thanh toán...” (amount paid, amount dishonoured, payment date…) on the face of the cheque, and send the certification of dishonour enclosed with the cheque and other documents to the payee or collecting banker; and send the certification of dishonour to the drawer.

+ Send a notice of NFS cheque to the drawer and ask the drawer to pay the dishonoured amount and emphasize the consequences following drawer’s failure to pay such amount.

The drawee shall keep track of partially-paid cheques. Any details about the drawer of NFS cheque shall be considered as prescribed in clause 2 hereof.

- Where partial amount of the cheque is paid, the drawee shall require the payee (in case of payment to the checking account of the payee at the drawee bank or payment in cash) or the collecting banker (in case of payment to the collecting banker) to make a receipt using the form of Appendix 04 hereto.

2. If multiple NFS cheques of the same drawer are presented at a time, the order to honour these cheques shall be determined according to the drawing date and number order of the drawn cheques, the cheque drawn first will be paid first and regarding the cheques drawn on the same day, the cheque with the smallest number order will be paid first.

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1. The collecting banker may charge the payee a given fee for collecting the cheque. If the cheque is dishonoured through no fault of the collecting banker, he is not obliged to return the above-mentioned fee to the payee.

2. If the cheque is dishonoured at the fault of the collecting banker, he is obliged to make restitution to the payee under an agreement between two parties. If they fail to reach an agreement, the case will be handled as per the law.

3. Procedures for presentment and scrutiny of the cheque at the collecting banker:

a) Based on the cheques, the payee shall make a cheque deposit slip using the form of Appendix 02 hereto. The copies of the cheque deposit slip shall be specified by the drawee provided that there is sufficient fund for accounting, payment and keeping. The cheque deposit slip shall be made by every drawee supported by the cheques presented to the collecting banker. All the parts of the cheque deposit slip must be complete and clear, and must not be corrected or erased;

b) On receiving copies of check deposit slip and the cheques submitted, the collecting banker must verify if all the parts of the check are legal and valid;

c) In case of any error found or any missing parts, the collecting banker shall return the ineligible cheque and require another cheque deposit slip in conformity with remaining eligible cheques;

d) In case no error is found, the collecting banker shall accept the collection of cheques at the request of the payee and send the cheques and the cheque deposit slip to the place of presentment in due time and with proper method as agreed upon with the payee and in accordance with applicable regulations of the drawee.

4. Procedures for doing accounting at the collecting banker:

a) For full payment of the cheque

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- Record a debit to a proper account (clearing, deposit account at the State Bank, deposit of the drawee, etc.) And record a credit to the checking account of the payee.

- Send a credit alert to the payee;

b) For partial payment of the cheque as notified by the drawee

Based on the actually paid amount, the collecting banker shall use the proof of partial payment of the cheque sent by the drawee to:

- Record debit to a proper account (clearing, checking account at the State Bank, checking account of the drawee, etc.) and record credit to a proper account (other account pending for payment, etc.).

The payee or the collecting banker (authorized by the payee) must make a receipt using the form of Appendix 04 hereto and send it to the drawee.

On receiving such a receipt, the collecting banker shall make a deposit slip, and:

- Record debit to other accounts pending for payment (opening accounts for every payee) and record credit to a proper account (the checking account of the payee; cash).

- Send a copy of the receipt to the drawee;

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Record debit to other accounts pending for payment (opening accounts for every payee) and record credit to a proper account (clearing, checking account at the State Bank, deposit of the drawee, etc.).

Article 24. Cheque suppliers

1. The check supplier shall promulgate internal regulations on their supply, payment, stop payment of cheques in accordance with the provisions of this Circular.

2. A cheque supplier may reach an agreement with another check supplier, either in or not in the same province or city, on payment of the cheques for customers of two parties, practices, powers and obligations of the relevant parties on the basis of their own responsibility for ensuring safety during payment of cheques, and notifying their customers of such agreement..

3. Cheques which are cleared through the clearing house:

a) When the clearing house is the State Bank, the cheques to be cleared shall comply with clearing procedures laid down by the State Bank;

b) When the clearing house is another organization operation license of which is issued by the State Bank, the clearing procedures shall be done in accordance with the agreement between that organization and members.

Article 25. Penalty interest rate

The interest rate on late payment of cheque, as prescribed in clause 2 Article 71 of the Law on Negotiable Instruments, is 150% of the interest rate of demand deposit of the cheque supplier quoted at the payment time.

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ACTIONS AGAINST LOST AND DAMAGED CHEQUES

Article 26. Lost cheques

1. Where a cheque is lost, the following actions should be taken:

a) If the drawer loses a blank cheque, that drawer must immediately notify the drawee of the loss in writing or other forms as agreed upon;

b) If the payee loses the cheque, that payee must immediately notify the drawee of the loss in writing or other forms as agreed upon; and, in person or through the previous endorsers of the cheque, further notify the drawer in order for the drawer to report the drawee to put a stop payment on that cheque.

2. The mentioned payee may, after reporting to the drawee, if that cheque has not been presented for payment, require the drawer to draw a duplicate of that cheque and the drawer is obliged to do so.

3. On receiving such a report on lost cheque, the drawee shall immediately check details about the lost cheque and keep track of it.

The drawee may not honour the lost cheque in case it is presented. When the lost cheque is presented for payment, the drawee must make a record on holding that cheque and request the entity which reported the loss to come for further actions.

4. The drawee assumes no responsibility for any damage caused by the misuse of the cheque if it was presented for payment as per the law before such a loss report is received.

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5. The drawee shall keep information about the lost cheque and send a notice to the National Credit Information Center.

Article 27. Damaged cheques

1. When a cheque is damaged, the payee may request the drawer to draw a duplicate of that cheque.

2. The drawer of the cheque is obliged to draw a duplicate upon receiving the damaged cheque which still has sufficient information or upon receiving evidence proving that the holder is the legal payee of the damaged cheque.

Chapter VIII

IMPLEMENTATION

Article 28. Entry in force

1. This Circular comes into force as of January 12, 2016.

2. Decision No. 30/2006/QD-NHNN dated July 11, 2006 of the State Bank and Article 2 of Circular No. 23/2011/TT-NHNN dated August 31, 2011 shall cease to be effective since the date of entry into force of this Circular.

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The Chief officers, Director of Payment Department, Heads of affiliates of the State Bank, Directors of branches of the State Bank of provinces and central-affiliated cities, Presidents of the Board of Directors, Presidents of the Member assembly, General Directors (Directors) of commercial banks, foreign bank branches, banks for social policies, cooperatives banks, people's credit funds, and microfinance institutions shall implement this Circular./.

PP. GOVERNOR
DEPUTY GOVERNOR




Nguyen Toan Thang