Commune transaction activities of Vietnam Bank for Social Policies
1. Commune transaction activities
Relating to commune transaction activities, it is necessary to understand commune transaction team, commune transaction points and commune transaction activities:
a) Commune transaction team is a group of VBSP’s staff assigned by the local Director of VBSP to conduct direct transaction with relating organizations and individuals in the commune in accordance with regulations promulgated by VBSP’s General Director; members of the team works under principles, regulations and professional standards for each job; they are equipped with facilities, tools and machines to ensure completion of assigned tasks at Commune Transaction Points.
Commune transaction team is a team under local VBSP, having no seal. Their tasks include: communicating policy credit, disbursing loans, collecting interest and debt from group members, mobilizing savings from local people; double check with clients at transaction sessions; conduct debt settlement process; receiving loan applications and other relating documents; meeting with Savings and Credit group’s leaders and mass organizations; reporting status of policy credit implementation to local Party and government.
Organizational structure of commune transaction team is formed on the basis of relationships of superiors, subordinates or co-workers; hierarchical order is in accordance with positions and tasks assigned; codes of conduct is formed and performance results can be anticipated, each individual has his/her own tasks. Team leader is the executive of the Commune Transaction Team, members of the Commune Transaction Team interact, cooperate with each other and with the Team Leader to achieve the common goal. Team members depend on each other's information to perform their task, all transaction information in the Team is supervised by the Controller. The number of staff participating in the Commune Transaction Team is based on the organizational structure of the Commune Transaction Team, the actual work volume of each specific transaction session and the number of existing staff of each unit. Local VBSP’s Director set up commune transaction team and assign tasks to staff.
b) Commune Transaction Point is a place where commune transaction team of VBSP organizes transactions with related organizations and individuals at commune level. Commune transaction points are located within the area of the commune People's Committee headquarters.
c) Commune transaction activity is a typical operational method of VBSP which is uniquely implemented in the system, an integral part of VBSP to serve poor households and policy beneficiaries.
Thus, it is possible to generalize the concept of commune transaction activity: "Transaction activity at communes, wards and towns (hereinafter referred to as communes) is the way of organizing transactions of VBSP with customers at Commune Transaction Point located in head office of Commune People's Committee”.
1.2. Organizational structure, scope of activities, roles, ways of operation and process of conducting transaction activities in the commune
1.2.1. Organizational structure
The commune transaction team has at least 03 staff to assume positions of a team leaders, a supervisor and tellers; The team leader is usually a credit officer who in charge of the commune, the Team Leader may be the supervisor; in case there are many tellers, one staff is assigned to be the main teller; In case there are more than 03 tellers, local VBSP Director can arranging an additional supervisor. In addition, the staff in the Transaction Team can be assigned other tasks by Director of local VBSP and the team leader.
1.2.2. Scope of operation
The transaction activities in the commune are carried out in a commune. Transaction team carries out transactions in Commune People's Committee’s office and only deals with customers and Savings and Credit groups’ leaders of the commune.
1.2.3. The role of commune transaction activities
Through direct disbursements, debt collection with borrowers, interest and deposit collection of members through Savings and Credit groups’ leaders and transactions with related customers, organizations and individuals, commune- based transaction activities play an important role in helping the poor and other policy beneficiaries to access the Government's social policy credit in a convenient, safe and cost-effective way. Commune-based transaction activities also help to implement democracy, transparency and strengthen supervision of local authorities and mass organizations, Savings and Credit group’s management boards in implementation of social policy credit at grass root level.
1.2.4. How the transaction team works
To carry out transaction activities on a fixed date and time once a month at a commune; the commune transaction team is fully equipped with tools and equipment for transactions such as cars, facilities, computers, printer, money counting machines, money detectors, cash and paper boxes, cameras, transmission equipment, network connection, generators, software to perform transactions and management, cash advance, savings books for transactions with customers etc.
1.2.5. Implementation process
* Before going to transaction point
- Receive and check equipment, prints, records, materials for transactions; laptops, transmission equipment, network connections, printers, software, updates; make money advance procedures, savings books, disbursement documents and other papers (if any).
- Receive a commune data file with transactions, enter the transaction data into the Intellect Offline module, open the first trading day, enter the amount of the advance fund at the beginning of the day (if any).
- Implement the protection plan for the Commune Transaction Team to ensure safety on the way to the commune transaction point.
* Work at Commune transaction point
- Arrange working positions at commune transaction points; implement protection plans at commune transaction points; install and connect of computer systems, printers, money counting machines, money detectors for transactions; installing cameras to record activities of the commune transaction team; arrange seats for customers and organize transactions.
- Urge the trustees (mass organizations) to verify "List of interest receivable - actual interest collected - deposit - collection of principal from deposits" (Table 13/TD) of each Savings and Credit group’s leader, instruct SCGs’ leaders and members to arrange and classify money and make a list of all money par value in accordance with the amount payable, Form 13 / TD, before dealing with Tellers.
- Receive records of lending, debt at maturity and other related documents after these documents are finished and reviewed by SCGs and mass organizations; receive and process information, feedback from customers, SCGs, mass organizations etc.
- Explain, guide, propagate guidelines and credit policies of the State and procedures and professional procedures of VBSP to borrowers, SCGs’ board of management and entrusted organizations (mass organizations).
- Chair the briefing meeting between VBSP and leaders of entrusted mass organizations at commune level and invite Commune People's Committee, members of BOD at district level to attend and direct. Briefing is arranged at the appropriate time during transaction session by leader of the transaction team.
- Conduct transactions with SCGs’ leaders, including transactions of collecting loan interest of members (including cash collection and bank transfer), collecting members' principal by money transfer, collecting deposits of group members under prescribed process;
- Conduct transactions with customers including cash transactions (receipts, payments), bank transfer transactions; direct comparison with customers on outstanding balances, deposit balances, interest payable under prescribed process.
* Tasks at the end of transaction session at the Commune transaction point
The teller print treasure’s ledger, list of arising transactions; arrange documents according to regulations; check and compare the cash balance on treasure’s ledger with cash in box to ensure proper matching; arrange records and documents as prescribed; print and publicize List of borrowers (Form 01 / CK) and Total outstanding loans (form No. 02 / CK); List of loans disbursed via ATM card (if any).
- Commune Transaction Points apply Intellect Offline: Perform sessions close and enter the actual cash balance, and export transaction data at the end of the day.
- Report the results of the transaction and issues etc., for leaders of Communal People's Committees.
- Checking signs of commune transaction points, instruction boards, public contents, mail boxes; open the mail box.
- List the list of borrowers (Form 01/CK) and Total outstanding loans (Form No. 02 / CK) in the table "Information on policy credit activities in the commune".
- Deploy protection plan on the way back to local VBSP headquarters.
* Work at VBSP headquarters after completing the commune transaction session
- Commune transaction team hand over equipment, working tools etc., according to regulations; report to local VBSP's manager about results of the transaction session and existing problems.
- Handover offline transaction data file to an authorized staff to update data on the system; The main teller transfer money from the system to local VBSP’s fund, and submit entire amount of cash in hand to local VBSP; Hand over to the chief accountant of local VBSP : treasury’s ledger, list of arising transactions (if any), documents and records made in the commune transaction session.
- Commune Transaction Points network of VBSP
2.1. The network of Commune Transaction Points
By September 30th, 2018, the whole country had 10,959 Commune Transaction Points, including 10,887 independent transaction points and 72 inter-commune and ward transaction points; 107 communes carries out transactions at local VBSP’s offices.
Commune Transaction Points throughout the country maintain transaction schedules on a fixed day of the month (including fixed dates, start times, transaction times ). In 107 wards and towns (accounting for 1% of the total number of communes, wards and towns) which carries out transactions at local VBSP’s offices, transactions are also held on a fixed date and time in the month and publicly posted on VBSP Website.
2.2. Fixed transaction schedule in the commune
Nationwide, transactions at the commune start on the 3rd and end on the 27th of each month. On average, there are 438 Commune Transaction Points operating each day, of which the 12th of every month is the day with the highest number of commune transaction points operating with 734 points, the lowest is the 3rd day with 20 points.
By September 30th, 2018, on average, a Transaction Office had 16 commune transaction points, the Transaction Office with highest number of Commune Transaction Points is Thai Thuy district, Thai Binh province with 48 points. There are 395 units with 15 Commune Transaction Points or less (57%), 268 units with 16 to 30 Commune Transaction Points (38.7%) and 30 units with more than 30 Commune Transaction Points (4.3%).
2.3. Credit scale in commune level
Credit scale in communes, wards and towns (referred to as communes) includes: loan outstanding balance, number of customers, number of savings and credit groups, balance of members' deposits, number of members participating in depositing, according to statistics, have increased over the years. By September 30th, 2018, each commune had an average of 17 Savings and Credit Groups, 612 borrowing households, outstanding loans of VND 16,856 million; in which all 17 Savings and Credit groups participated in depositing activities with around 606 members make deposit with total balance of VND 753 million. Each Savings and Credit Group has an average of 37 members with an average outstanding loan of VND 1,010 million.
In summary, commune transaction activities are the way of VBSP's operation to serve customers at commune transaction points in order to enhance the accessibility of Government's social policy credit to the poor and other policy beneficiaries; reduce transaction costs of borrowers; implementing democracy, publicizing the use of policy credit and strengthening direction of local authorities and mass organizations in checking, supervising and helping borrowers use capital effective.
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LENDING INTEREST RATE
DEPOSIT INTEREST RATE