Circular No. 01/2025/TT-NHNN dated April 29, 2025 on the issuance of initial licenses, replacement of licenses for people’s credit funds

STATE BANK OF VIETNAM --------	SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness ---------------
No: 01/2025/TT-NHNN	Hanoi, April 29, 2025

 

CIRCULAR

ON THE ISSUANCE OF INITIAL LICENSES, REPLACEMENT OF LICENSES FOR PEOPLE’S CREDIT FUNDS

Pursuant to Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to Law on Credit Institutions dated January 18, 2024;

Pursuant to Law on Cooperatives dated June 20, 2023;

Pursuant to the Government's Decree No. 26/2025/ND-CP dated December 24, 2025 on functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to Government’s Decree No. 162/2024/ND-CP dated December 20, 2024 on licensing requirements for people’s credit funds, microfinance institutions and eligibility requirements for owners of credit institutions that are single-member limited liability companies, founding shareholders and founding members;

At the request of the Director of the Department of System Safety Supervision of Credit Institutions;

The Governor of the State Bank of Vietnam hereby promulgates a Circular on the issuance of initial Licenses, replacement of Licenses for people’s credit funds.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular deals with:

1. Applications and procedures for the issuance of initial Licenses for people’s credit funds.

2. Rules, applications and procedures for the Replacement of Licenses for people’s credit funds.

3. Authority to issue Licenses for the first time, replace Licenses, issue copies from the originals

4. Licenses, procedures to issue copies from the originals.

5. Submission of fees for the issuance of initial Licenses, Replacement of Licenses for people’s credit funds.

6. Opening of operations.

7. Notices on information on the issuance of initial Licenses and Replacement of Licenses for people’s credit funds for business registration agencies.

Article 2. Regulated entities

1. People’s credit funds.

2. Organizations and individuals relevant to the issuance of initial Licenses and replacement of Licenses for people’s credit funds, issuance of copies from the originals.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Preparatory Committee refers to a group appointed by the founding members, on behalf of the founding members to carry out tasks related to the application for the License. The Preparatory Committee must have at least 03 members, including 01 Head.

2. Regional branches of the State Bank of Vietnam (hereinafter referred to as “SBV”) are SBV’s branches located in the regions where head offices of people’s credit funds are located.

3. Founding meeting refers to a meeting of founding members that:

a) Ratify the draft charter of the people’s credit fund, scheme on establishment of the people’s credit fund; list of persons to be elected or appointed to act as Chairperson and members of the Board of Directors, those of the Board of Members, head and members of the Control Board, Director of the people’s credit fund for the first term;

b) Elect preparatory board and its head from the founding members who are on the list of persons to be elected or appointed to act as Chairperson and members of the Board of Directors those of the Board of Members, head and members of the Control Board, Director of the people’s credit fund for the first term, and some other members to carry out tasks related to the proposal for approval of rules of the establishment of the people’s credit fund and amendments to the application for issuance of a License on behalf of the founding members at the request of the SBV’s regional branch.

c) Decide other matters relevant to the establishment of the people’s credit fund.

4. License refers to a License for the establishment and operation of a people's credit fund issued by a SBV’s regional branch. The License is also a Certificate of cooperative registration. SBV's document on amendments to to a License is an integral part of the License.

5. First general members’ meeting refers to the first meeting attended by founding members of the people’s credit funds after receiving approval from the SBV’s regional branch for rules of establishment that:

a) Ratify the Charter of the people’s credit fund;

b) Elect Chairperson and members of the Board of Directors, those of the Board of Members, head and members of the Control Board, Director of the people’s credit fund for the first term from the personnel list approved by the SBV’s regional branch;

c) Adopt regulations on the organization and operation of the Board of Directors and the Control Board of the people’s credit fund;

d) Approve the case where a person concurrently holds the position of member of the Board of Directors and Director or the hire of Director;

dd) Decide other matters relevant to the establishment of a people’s credit fund.

Article 4. Authority to issue initial Licenses, replace Licenses, and issue copies from the originals

Heads of SBV’s regional branches have the authority to issue Licenses, replace Licenses, and issue copies from the originals to people’s credit funds with head offices located in the regions.

Article 5. Rules of application preparation and submission

1. Documents included in the application for the issuance of initial Licenses must be signed by the Head of the Preparatory Committee, except when there are other regulations in this Decree. Documents signed by the Head of the Preparatory Committee must have the title "The Preparatory Committee of the people's credit fund (name of the people's credit fund) requests for licensing".

2. Documents included in the application for Replacement of Licenses, issuance of copies from the original must be signed by the legal representative or the authorized representative (hereinafter referred to as “legal representative”). In case of signing on behalf of the authorization, an authorization document is required.

3. Application for the issuance of initial Licenses, Replacement of Licenses, or issuance of copies from the original of the people’s credit funds must be prepared in 01 set in Vietnamese.

4. Copies in the application must be copies issued from the original or certified true copies or copies accompanied by the original for verification. In case the applicant submit a copy accompanied by the original for verification, the verifier must sign and confirm the accuracy of the copy compared to the original.

5. Each application must include a list of document.

6. The application for the issuance of initial Licenses or Replacement of Licenses shall be submitted in person or by post to the single-window department of the SBV's regional branch.

Article 6. License

1. SBV's regional branches shall specify the specific content of activities, operational areas, and duration of activities in each License made using the form in Appendix 01 attached hereto.

2. In cases where the License is lost, torn, burnt, or damaged, the people’s credit fund shall submit an application for issuance of a copy from the original License made using the Form in Appendix 02 attached herewith, in person or by post, to the single-window department of the SBV's regional branch or submit it on the SBV’s website.

The SBV's regional branch shall, within 04 working days from the date on which the application is received, consider the issuance of a copy from the original License to the applicant.

Article 7. Fees for License issuance

1. The people’s credit fund applying for the issuance of initial Licenses or Replacement of Licenses shall make payment directly at the SBV's regional branch or make an online payment through the National Public Service Portal within 15 days from the date of License issuance or Replacement of Licenses.

2. The fee rates for License issuance and Replacement of Licenses shall be in accordance with the provisions of the law on fees and charges.

Chapter II

SPECIFIC PROVISIONS

Section 1. REGULATIONS ON THE ISSUANCE OF INITIAL LICENSES

Article 8. Application for the issuance of initial Licenses

1. Application for the issuance of initial License shall be made using Form in Appendix 03 attached herewith.

2. Draft Charter of people’s credit funds shall be approved at the Founding meeting.

3. Scheme on establishment of the people’s credit fund shall be approved at the Founding meeting, including:

a) The necessity of establishing the people's credit fund;

b) Name of the people's credit fund, operational areas, head offices, operational duration, charter capital, activities in compliance with Law on Credit Institutions and relevant regulations;

c) Organizational structure;

d) Risk management regulations, including types of risks that may occur during operations, methods and measures for risk management;

dd) Loan procedures and policies for members, depositors of the people’s credit fund, poor households within the area that are not members of the people’s credit fund.

e) Information technology: Information technology system developed for ensuring information safety and confidentiality, providing assistance for operational activities, management, and requirements for reporting and statistics; application of information technology systems in banking operations; and investment in information technology systems;

g) Internal control and auditing system in compliance with regulations of the Governor of SBV;

 (i) Rules of operation of the internal control system;

 (ii) Draft internal regulations on organization and operation of the people's credit fund, including at least internal regulations stipulated in Clause 2, Article 10 of the Law on Credit Institutions and regulations on the organization and operation of the Board of Directors, Control Board, and heads;

 (iii) Content and procedures of internal auditing operations;

h) Business plan for the first 3 years in line with contents and scope of activities, including analysis, demonstration of effectiveness, and the ability to implement the plan in each year.

4. List of persons to be elected or appointed to act as Chairperson and members of the Board of Directors, head and members of the Control Board, Director of the people’s credit fund.

5. Documents proving the eligibility of persons to be elected or appointed to act as Chairperson and members of the Board of Directors, head and members of the Control Board, Director of the people’s credit fund

a) Curriculum vitae made using the Form in Appendix 04 attached herewith;

b) Copies of academic qualifications and professional certificates;

c) Criminal record that:

 (i) contains adequate information (including expunged and non-expunged criminal convictions) and information on positions, establishment and management for enterprises and cooperatives;

 (ii) is issued by the competent authority no more than 6 months before applying for License issuance.

Persons to be elected or appointed may present e-criminal record issued through the VNeID, or submit an e-criminal record in accordance with regulations;

d) Declaration form of relevant persons to be elected or appointed; written assessment of professional ethics of persons to be elected or appointed from credit institutions or branches of foreign banks where they have been or are employed, in accordance with the regulations on approval of list of persons to be elected or appointed by the Governor of SBV.

6. List of founding members of the people’s credit fund. The list must be signed and confirmed by all founding members, including:

a) Full name (for individuals or heads of households); Name, address of head office (for juridical persons)

b) Personal identification number (for individuals); personal identification number of head of household (for households); business registration number or establishment decision number or other equivalent legal document number and personal identification number of the capital-contributing representative (for juridical persons).

c) Amount of capital contribution, capital contribution ratio of each member.

7. A copy of enterprise registration certificate or establishment decision or equivalent legal documents (for juridical persons)

8. Authorization document from the juridical person to the representative to participate in capital contribution.

9. Authorization document from the household to the representative of the household to participate in capital contribution.

10. Financial statements for the year preceding the year of submission of the application for the License and the most recent financial statements, dated no more than 90 days prior to the application date (for juridical persons)

11. Report on financial capacity to make capital contribution to the people’s credit fund for juridical person made using the Form in Appendix 05 attached hereto.

12. Application for membership in accordance with regulations on people’s credit funds of the Governor of SBV.

13. Minutes of Founding meeting shall be used for ratifying the draft charter of the people’s credit funds, scheme on establishment of the people’s credit funds; list of persons to be elected or appointed to act as Chairperson and members of the Board of Directors, head and members of the Control Board, Director of the people’s credit funds; and selecting the Preparatory Committee and head of the Preparatory Committee.

14. After receiving a written approval, the Preparatory Committee shall submit supplementary documents as follows:

a) The Charter of the people’s credit fund approved by the first general members’ meeting of the people’s credit fund;

b) Meeting minutes and Resolution of the first general members’ meeting of the people’s credit fund on approval of the Charter, election of Chairperson and members of the Board of Directors, head and members of the Control Board, decision on the case where a person concurrently holds the position of member of the Board of Directors and Director or the hire of Director. Resolution of the first general members’ meeting on approval of the Charter shall be ratified if it is voted for by at least 75% of total members participating in the meeting. Resolution on approval of the Charter, election of Chairperson and members of the Board of Directors, head and members of the Control Board, decision on the case where a person concurrently holds the position of member of the Board of Directors and Director or the hire of Director shall be ratified by the first general members’ meeting when it is voted for by at least 50% of total members participating in the meeting;

c) Decision on the appointment of the Director of the people’s credit fund on the basis of the list of persons approved by the SBV's regional branch.

d) Documents proving ownership or legal use right of the head offices;

dd) Internal regulations on the organization and operation of the people’s credit fund stipulated in Point g(ii), Clause 3, Article 8 of this Circular ratified by the first general members’ meeting, Board of Directors.

Article 9. Procedures for the issuance of initial License

1. SBV's regional branch shall extract necessary information from the National population database when verifying and assessing residency information. If necessary information cannot be extracted from the National population database, SBV's regional branch shall request the Preparatory Committee to provide a copy from the original of one of valid documents providing residency information as per laws on extraction and use of residency information in handling of administrative procedures and public services.

2. The Preparatory Committee shall prepare an application for the issuance of License in accordance with Clauses 1 to 12, Article 8 of this Circular and submit it to the SBV's regional branch.

The SBV's regional branch shall, within 30 days from the date on which the application for the License issuance is received, send a written confirmation of receiving an accurate and adequate application to the Preparatory Committee. In cases where the application is inaccurate, a written request to provide supplementary documents shall be sent to the Preparatory Committee.

3. The SBV's regional branch shall, within 05 days from the date on which the written confirmation is received in accordance with Clause 2 of this Article, send a written request for opinions to:

a) The commune-level People's Committee or grassroots-level People's Committee of provinces and central-affiliated cities (hereinafter referred to as “Commune-level People's Committee”) where the people’s credit fund proposes to establish its head office about the establishment of the people’s credit fund.

b) The commune-level People's Committee where the person to be elected or appointed resides about the list of persons to be elected or appointed to act as Chairperson and members of the Board of Directors, head and members of the Control Board, and Director of the people’s credit fund.

c) Other SBV's regional branch for information provision made using the Form in the Appendix 06 attached herewith (if necessary);

d) Cooperative banks about the list of persons to be elected or appointed to act as Chairperson and members of the Board of Directors, head and members of the Control Board, and Director of the people’s credit fund (if necessary).

4. Within 15 days after receiving the written request of the SBV's regional branch, relevant bodies shall give written opinions.

5. Within 45 days after receiving satisfactory application, the SBV's regional branch shall issue a written approval for principles of establishment of the people’s credit fund. If the application is rejected, the SBV's regional branch shall provide explanation in writing. The written approval includes: Approval for the principles of establishment and operation of the people's credit fund, approval for the list of persons to be elected and appointed of the people’s credit fund.

6. Within 60 days after receiving the written approval:

a) The Preparatory Committee shall organize the first general members’ meeting to ratify the contents as prescribed in Clause 5 Article 3 of this Circular;

b) The Preparatory Committee shall prepare supplementary documents in accordance with Clause 14, Article 8 of this Circular and submit them to the SBV's regional branch. If the above-mentioned documents are not received or received inaccurately by the deadline, the approval for the principles of establishment shall no longer be valid.

Within 05 working days after receiving the supplementary documents accurately, the SBV's regional branch shall issue a written confirmation. Within 30 days from the date on which the written confirmation is issued, the SBV's regional branch shall issue the License in accordance with the regulations. If case of refusal, the SBV's regional branch shall provide explanation in writing.

Article 10. Launching operations

1. The people’s credit fund shall publish the following information at the head office of the commune-level People's Committee, on commune-level radio station at the location where its head office (if any) is located for 3 consecutive days, on a mean of media of SBV and in 03 consecutive issues of a printed newspaper nationwide or on a Vietnamese online newspaper at least 30 days before the scheduled opening date:

a) Name, address of the head office;

b) License number, issuance date;

c) Activities, operating period, operating area;

d) Charter capital;

dd) Legal representative;

e) List and corresponding capital contribution ratio of each founding member of the people’s credit fund;

g) Scheduled launch date.

2. To launch operations, a people's credit fund that has been granted a license must meet the following conditions:

a) It has a Charter approved by the first general members’ meeting of the people’s credit fund;

b) It has a sufficient charter capital. Its charter capital in Vietnamese dong shall be fully deposited into the frozen account without interests opened at the State Bank for at least 30 days before the launch date. Its charter capital shall be released after the launch date.

c) It has a head office where:

 (i) is the workplace of the Board of Directors, Management Board as stated in the License in accordance with the regulations; is the transaction place with customers;

 (ii) is located within the operational area specified in the License, with an address include building name, number, street, commune, ward, province or central-affiliated city; telephone number, fax number, and email (if any);

 (iii) is under the legal ownership or legitimate use of the people’s credit fund;

 (iv) facilitates transactions with customers and has a vault meeting technical standards prescribed by the Governor of SBV;

 (v) ensures asset safety and compliance with the operational requirements of the people’s credit fund;

d) It has a organizational structure, internal control system, and internal audit system suitable to its type of operation in accordance with the Law on Credit Institutions and other relevant regulations;

dd) It has a information technology system meeting requirements in point e, Clause 3, Article 8 of the Circular;

e) It has internal regulations on organization and operation of the Board of Directors, Control Board, Director, and specialized departments; internal regulations on risk management;

g) It has published information about launching operations in accordance with Clause 1 of this Article.

3. The people’s credit fund shall launch operations within 12 months after receiving the License, except in cases of force majeure events; if operations are not launched within the deadline, the License shall expire. SBV shall publish information about the expiration of Licenses on its website.

4. At least 15 days before the scheduled launch date, the people’s credit fund which has been issued with a License shall send a notice on requirements for launching operation in accordance with Clause 2 of this Article, in person or by post, to the SBV's regional branch. The SBV's regional branch shall suspend the launching operations if the people’s credit fund fails to meet the requirements specified in Clause 2 of this Article.

Section 2. REGULATIONS ON THE LICENSE REPLACEMENT

Article 11. Principles for License replacement

1. SBV's regional branches shall not approve the replacement for Licenses if the operations of people’s credit funds are not permitted to be performed under laws at the time of replacement.

2. SBV's regional branches shall adjust names of operations permitted to be performed in a manner that is conformable to the Law on Credit Institutions. The replaced licenses shall be made using the Form in Appendix 07 enclosed herewith and replace all licenses and written approvals which have been granted by SBV to people’s credit funds prior to the time of replacement.

3. In case where a people’s credit fund applies for both supplementation and replacement of a license, the SBV's regional branch shall consider replacing the License with a new one with the proposed additions, provided that the applicant satisfies application requirements specified in Clause 1 Article 12 of this Circular.

Article 12. Applications and procedures for replacement of Licenses

1. An application for the replacement of License:

a) The application for the replacement of License shall be made using Form in Appendix 08 attached herewith.

b) Application for adjusting the operations (in cases where the people’s credit fund applies for both supplementation and replacement of a License):

 (i) Resolution of the Board of Members ratifying the adjustments of operations;

 (ii) Implementation plan for operations, including at least the following contents: Description, implementation process, effectiveness analysis and preventive measures, risk management, implementation plan; plan for handling and ensuring compliance with regulations on prudential ratios for the operations of credit institutions that are cooperatives (in case of reduction in business lines);

 (iii) Internal regulations on business processes which must ensure management and control of risks;

 (iv) Documents proving satisfaction of conditions for business lines to be conducted as prescribed by law (if any).

2. Procedures for replacement of Licenses:

a) The people’s credit fund that wishes to replace its License shall prepare an application in accordance with Clause 1 of this Article and submit it to the SBV's regional branch;

b) Within 30 days from its receipt of an adequate or legitimate application, the SBV's regional branch shall replace the License (including both supplementation and replacement of the License) at the request of the people’s credit fund. In case of refusal, a written response shall be provided by the SBV's regional branch.

Section 3. NOTICES ON INFORMATION ON THE ISSUANCE OF INITIAL LICENSES, REPLACEMENT OF LICENSES

Article 13. Notices on information on the issuance of initial License and replacement of License for business registration agencies.

1. Within 05 working days of the issuance of initial License, the SBV's regional branch shall send a notice, enclosed with information about the legal representative of the people's credit fund, to the business registration agency in accordance with the regulations on cooperative registration to update it in the National information system in cooperative registration.

2. Within 05 working days of the replacement of License, the SBV's regional branch shall send a notice, enclosed with information about the replaced License, to the business registration agency in accordance with the regulations on cooperative registration to update it in the National information system in cooperative registration.

Chapter III

RESPONSIBILITIES OF RELEVANT ORGANIZATIONS AND INDIVIDUALS

Article 14. Responsibilities of the Preparatory Committee

1. Prepare and submit an application for the issuance of initial License in accordance with this Circular.

2. After receiving the written approval for principles, the Preparatory Committee shall:

a) organize the first general members’ meeting as prescribed in Point a Clause 6 Article 9 of this Circular;

b) Send notice to founding members to deposit money into the account opened by the Preparatory Committee at a Vietnamese commercial bank.

3. Provide guidance to founding members on contributing capital and reviewing the applications of founding members.

4. Take responsibility for the adequacy and accuracy of the application submitted to the SBV's regional branch.

5. Inform founding members of the reasons for refusal of issuance of License provided by the SBV's regional branch.

Article 15. Responsibilities of the Head of the Preparatory Committee

1. Convene the first general members’ meeting in accordance with regulations.

2. Sign documents within the authority related to the establishment of the people’s credit fund until the License is issued by the SBV's regional branch.

Article 16. Responsibilities of organizations and individuals relevant to the establishment of the people’s credit fund

Organizations and individuals relevant to the establishment of the people’s credit fund shall provide adequate, accurate and timely information as required by the SBV's regional branch and the Preparatory Committee in accordance with this Circular and take legal responsibility of the information.

Article 17. Responsibilities of people’s credit funds

1. Provide adequate, accurate and timely information as required by the SBV's regional branch in accordance with this Circular on License replacement and take legal responsibility of the information.

2. Publish information at the head office of the commune-level People's Committee, on commune-level radio station at the location where its head office (if any) is located for 3 consecutive days, on a mean of media of SBV and in 03 consecutive issues of a printed newspaper nationwide or on a Vietnamese online newspaper at least 07 working days from the date of License replacement and amendments to to the Charter to align with the content of the replaced License.

3. Implement other contents as regulated in this Circular.

Article 18. Responsibilities of SBV's regional branches

1. Assess the satisfactory of applications for the issuance of initial License before approving principles; send a written confirmation to the Preparatory Committee or a written request to supplement the application.

2. Issue License for the people’s credit fund which meets the requirements and submits a satisfactory application, or issue a written refusal (with explanation).

3. Take responsibility for managing and storing applications of the issuance of initial Licenses, replacement of License after after the initial License issuance, and License replacement.

4. Inspect, direct, supervise people’s credit funds to ensure compliance with legal requirements, SBV’s regulations before launching operations.

5. Suspend a people's credit fund from launching operation in case where it fails to meet the conditions for operation.

6. Assess applications for License replacement. Replace License for the people’s credit fund which meets the requirements and submits a satisfactory application, or issue a written refusal (with explanation).

7. Send a notice to SBV to publish information about the expiration of a License on its website in accordance with Clause 3, Article 10 of this Circular.

Article 19. Responsibilities of cooperative banks

Participate in providing written opinions on the List of persons to be elected or appointed to act as Chairperson and members of the Board of Directors, head and members of the Control Board, Director of the people’s credit fund at the request of the SBV's regional branch.

Chapter IV

IMPLEMENTATION CLAUSES

Article 20. Effect

This Decree shall come into forces from June 15, 2025.

Article 21. Implementation

Heads of units affiliated to SBV, heads of SBV's regional branches, cooperative banks, and people’s credit funds shall implement this Circular./.