Banks are not allowed to refuse or charge a fee for exchanging torn or damaged banknotes.

The State Bank of Vietnam requires commercial banks not to refuse or charge fees for exchanging banknotes that do not meet circulation standards, regardless of the quantity.

The State Bank of Vietnam (SBV) has just issued document No. 4458/NHNN-PHKQ requesting SBV branches in provinces and cities and the SBV Transaction Department to meet the demand for small-denomination banknotes.

The State Bank of Vietnam has requested an increase in the circulation of small-denomination banknotes to avoid waste.

Accordingly, to ensure smooth cash circulation and prevent shortages of small-denomination banknotes or the accumulation of substandard banknotes in localities, the Governor of the State Bank of Vietnam requests the Directors of the State Bank of Vietnam branches in provinces and cities and the State Bank of Vietnam Transaction Departments to implement several measures.

Specifically: Increase the circulation of small denomination banknotes from 5,000 VND and below, including both existing and newly printed banknotes. Regularly monitor and assess the currency circulation situation in the area to proactively meet the demand for small denomination banknotes from credit institutions and the State Treasury. Facilitate and promptly serve the reasonable needs of organizations and individuals in the area for exchanging small denomination banknotes.

The State Bank of Vietnam's provincial and city branches should strengthen their direction, inspection, and supervision of credit institutions and the State Treasury in putting small-denomination banknotes into circulation.

Strengthen the work of exchanging banknotes that do not meet the standards for circulation as stipulated in Circular No. 25/2012/TT-NHNN, especially exchanging torn and damaged small-denomination banknotes to clean up and beautify the banknotes in circulation.

Provide guidance, supervision, and regular inspection of the money selection and classification process to promote a sense of responsibility, criticize, and strictly handle violations of regulations by treasury officials in the selection of substandard banknotes for circulation.

The State Bank of Vietnam directs credit institutions to create the best conditions and ensure convenient transactions for exchanging unfit-for-circulation banknotes for the public. They are not allowed to refuse or charge fees for exchanging unfit-for-circulation banknotes, regardless of the quantity. The State Bank of Vietnam does not charge transaction fees for exchanging unfit-for-circulation banknotes by credit institutions or the State Treasury.

The State Bank of Vietnam's provincial and city branches should proactively research and assess the actual situation in their localities regarding the current demand and quality of small denomination banknotes, and proactively take positive measures to prevent shortages of small denomination banknotes or the accumulation of substandard banknotes in the population, which could affect the credibility of the Vietnamese currency. At the end of the year, they should report on the implementation of this task in their annual report on monetary affairs and treasury security.

According to Vov.vn