Regulations on account management of State Treasury at commercial banks

The State Treasury opened accounts at commercial banks in order to collect and spend state funds. Photo: Thùy Linh

Accordingly, the State Treasury opened accounts at commercial banks in order to collect and spend state funds. Therefore, the State Treasury must select commercial banks to open a collection account which must meet those following criteria: operating safely and stably for three consecutive years up to the time of selection according to the document of annual evaluation of the SBV sent to the State Treasury; having Core Banking system located in Vietnam; the IT system meets the requirements of connecting and exchanging electronic bilateral payment information with the State Treasury, ensuring connection standards at the request of the State Treasury; has the function of collecting and payment the state budget at counters and collecting and through electronic transaction channels.

The draft also stipulated that commercial banks must have integrated software of state budget collection with Core Banking and have the ability to connect and exchange information with the Ministry of Finance's project of modernizing state revenue collection. At the same time, those commercial banks must commit to fully comply with the principles, processes and responsibilities in the agreement between the two parties.

The Ministry of Finance stipulated that the State Treasury should operate the balances on the State Treasury accounts at banks by the following principles: for payment accounts and specialized collection accounts of the Operation Centre of State Treasury, provincial State Treasury and District State Treasury at commercial banks, at the end of the trading day, all balances on those accounts should be transferred to general payment accounts, specialized collection accounts of Central State Treasury at the same commercial bank system, ensuring those accounts have a balance of zero.

For general payment accounts, general collection accounts of the Central State Treasury at commercial banking systems, at the end of the trading day, all balances on those accounts should be transferred to the payment account of the Central State Treasury at the Operations Centre of the Vietnam State Bank, ensuring that those accounts have a balance of zero (except for consolidated payment accounts of foreign currencies that the Operations Centre of the Vietnam State Bank has a document to refuse to open an account for the State Treasury).

For the general payment account of the Central State Treasury opened at the Operations Centre of the Vietnam State Bank, at the end of the day at the Central State Treasury, there is always a debt balance.

In addition, the draft also stipulated the process of closing and opening of State Treasury account at the Operations Centre of the Vietnam State Bank and commercial banks. Accordingly, at the Central State Treasury and Operations Centre of the Vietnam State Bank, the Director General would decide to close and open bank accounts as prescribed.

For the State Treasury at provincial-level and district-level, when there is a need to open new account or open more or change the place of opening payment accounts, they must send a request document to the Central State Treasury, clearly stating the reason for opening new or opening more or changing the place where the account was opened.

Within 15 working days from the date of receiving the request document, the Central State Treasury would base on the provisions of the Circular to respond on the approval or disapproval for the proposal of opening new or opening more or changing the place of opening the account of the provincial State Treasury in order to meet the requirements of State budget collection and expenditure.

Based on the approval document of the Central State Treasury, the provincial State Treasury and district-level State Treasury would implement the procedures to open an account in accordance with the regulations of the bank where the account was opened.

When there is a need of closing and finalize accounts at banks, State Treasuries at provincial-level and district-level State Treasuries should send requests document and coordinate with banks where accounts were opened to carry out procedures to close accounts in accordance with regulations of the State Bank of Vietnam and commercial banks.