Transaction activities of VBSP at commune level

(VBSP News) Serving the poor and other disadvantaged groups in accessing preferential credits and financial services of the government in such a convenience, cost saving and quick manner; to publicize the use of social credit and strengthen the steering of local government and mass organizations in policy credit implementation, VBSP has established the model of fixed date transaction points at commune/ward/town (referred to as commune) for serving the poor and other policy beneficiaries. Commune transaction is such an effective approach of VBSP to customers at mobile transaction point located in the venue of Communal people’s committee.

VBSP has established the model of fixed date transaction points at commune for serving the poor and other policy beneficiaries

As of December 31^st 2019, VBSP has set up 10,853 mobile transaction points out of over total 11,055 communes, wards and towns nationwide. Through commune transactions, 93% of the total transaction value of VBSP has been dealt with customers. For communes where VBSP’s district offices located, transactions will be hold in those offices.

Commune transaction point is a place where a Commune Transaction Team hold transactions with customers, relating organizations and individuals in commune area according to the fixed transaction schedule per each commune, ward or town (at least once a month). The commune transaction point is located in the office of the Commune People's Committee. At commune transaction points, VBSP publicizes information such as issues, policies and guidelines on preferential credits for the poor and other disadvantaged beneficiaries; interest rate of each loan program; transaction rules; list of active borrowers so that all local authorities, mass organization and customers can control policy credit activities.

Commune Transaction Team is a group of staff assigned by the Manager/Director of local VBSP to carry out the task of directly transacting with customers, relating organizations and individuals in commune area in accordance with regulations promulgated by the General Director of VBSP. The commune transaction team has at least 03 members to hold job titles of a team leader, a supervisor and teller(s). Each team members shall follow the principles, regulations and professional standards specified for each position; they are fully equipped with facilities and equipment to fulfill the tasks assigned at the Commune Transaction Point.

The Commune Transaction Team is responsible for disseminating and publicizing credit policies; loan disbursement, collection of interest, debt, deposits of group members, residential deposits. In addition, the Commune Transaction Team also receives loan applications, debt handling files, etc.; conducts meetings and briefings with mass organizations, leaders of the Savings and Credit Groups to communicate, deploy tasks and get information on activities of Savings and Credit groups and borrowers.

Through direct loan disbursement to and debt collection from borrowers, interest and savings deposit collection from Savings and Credit groups and transaction with relating organizations and individuals, commune transaction plays an important role in helping the poor and other policy beneficiaries to access social policy credit of the Government in a convenience, cost saving manner; democratic and public way and strengthen supervision of local authorities and mass organizations over the implementation of policy credit.

In summary, commune transaction is VBSP’s operation method to serve customers at commune transaction points through commune transaction teams in order to improve access of the poor and other policy beneficiaries to policy credit of the government; reducing transaction costs for borrowers; exercising democracy, publicity and strengthen supervision of local authorities and mass organizations in controlling, supervising and assisting borrowers in effective loan utilization.

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