On June 30, 2016, the State Bank of Vietnam issued the Circular 21/2016/TT-NHNN on amending a number of Articles of the Circular No. 04/2013/TT-NHNN dated March 1, 2013 of the State Bank of Vietnam providing the discount of negotiable instruments and other valuable papers by credit institutions and foreign bank branches for clients.
According to the regulations in this Circular, commercial banks, financial companies, financial leasing companies, cooperatives banks, and branches of foreign banks are permitted to conduct discounted transfer of negotiable instruments and other valuable papers as specified in establishment and operation licenses or establishment licenses issued by the State Bank.
Besides, the Circular also emphasizes that credit institutions and branches of foreign banks must provide internal regulations on discounted transfer of negotiable instruments and other valuable papers in accordance with this Circular, the Law on credit institutions and relevant law provisions.
This Circular takes effect on July 1, 2016.
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