New Regulations on the Counting, Inventory, and Destruction of Currency
State Bank of Vietnam (State Bank) issued Circular No. 42/2026/TT-State Bank, amending and supplementing certain provisions of Circular No. 03/2020/TT-State Bank regarding the destruction of currency by the State Bank. The new circular revises several provisions related to planning, delivery, storage, counting, cutting and destruction, inventory, monitoring, and reporting during the currency destruction process.
According to the State Bank of Vietnam, the amendments and supplements to Circular No. 03/2020/TT-State Bank of Vietnam aim to ensure that the procedures and operations involved in currency destruction are rigorous, effective, practical, and safe for assets, while also contributing to the cleanliness and appearance of Vietnamese currency. Circular No. 42/2026/TT-State Bank of Vietnam consists of 15 articles.
It provides clearer regulations from planning to counting the currency to be destroyed
One of the notable provisions in Article 1 is the amendment to the regulations on the authority to decide on currency destruction. Accordingly, based on data regarding the inventory of currency unfit for circulation and currency suspended from circulation in the Issuance Reserve Fund within the State Bank of Vietnam system; the number of employees; the capacity of machinery and equipment; and the standards for receiving, counting, cutting, and destroying currency, the Director of the Issuance and Treasury Department submits a currency destruction plan to the Governor of the State Bank of Vietnam for approval. The plan includes the destruction timeline, quantity, and value of each type of currency to be destroyed.
Article 2 and Article VND 3, as amended, stipulate the counting ratios for currency prior to destruction. Based on the results of annual surplus and shortage counts of currency designated for destruction, the Chair of the Destruction Committee shall determine the counting ratio for each type of currency prior to destruction. The Chair of the Destruction Council is responsible for providing general guidance and oversight, as well as determining the counting ratio for each type of currency to be destroyed.
The regulations on the receipt, transfer, and storage of currency to be destroyed are also specified in Article 4. Accordingly, the Custodian of the Currency Destruction Warehouse organizes the receipt of currency delivered by the Central Currency Warehouse in bags or boxes that are sealed and secured with lead seals. The seal must clearly and completely state all elements in accordance with the State Bank of Vietnam’s regulations on sealing cash; this process is supervised by internal control officers from the Bureau of Issuance and Treasury and the Branch of Issuance and Treasury to ensure the cash intended for destruction is received into the warehouse in accordance with regulations.
In cases where the Team Leader also serves as the Cash Destruction Warehouse Manager, they shall perform the duties of the Cash Destruction Warehouse Manager.
Notably, Article 5 amends and supplements several provisions of Article 16 regarding the counting of currency for destruction. Based on the documents authorizing the release of currency for destruction, the members managing the currency destruction warehouse carry out the release so that Team 1 can hand it over to Team 2, under the supervision of internal control officials from the Issuance and Treasury Department and the Issuance and Treasury Sub-department...
Article 6 further stipulates the destruction process. Based on the withdrawal documents for currency to be destroyed, the Team Leader of Team 3 organizes the receipt of currency from Teams 1 and 2 through the handover of bundles and bags that remain sealed in accordance with regulations.
In addition, Article 7 amends the regulations on the handling of mixed-denomination currency that does not meet circulation standards, currency suspended from circulation, and counterfeit currency detected during counting. For these types of currency, the Vice Chairperson in charge of the destruction unit decides the timing of destruction during the year.
Inventory of the currency destruction warehouse at the end of the last working day of each month
Another notable point is found in Article 8 regarding the inventory of the currency destruction warehouse. Under the new regulations, currency designated for destruction stored in the warehouse is inventoried periodically once a month at the end of the last working day of the month.
The inventory is conducted by the Vice Chairperson in charge of the currency destruction cluster, a member of the Currency Destruction Council responsible for managing the currency destruction warehouse, the Head of the Currency Destruction Division, and the staff member responsible for the accounting of the currency destruction warehouse; additionally, support staff may be called upon to assist with the inventory under the supervision of the Supervisory Council. In the event that the Vice Chairperson in charge of the destruction unit is absent, the inventory count may be delegated to a member of the Destruction Council; however, the person so delegated must not be a member responsible for managing the destruction cash vault.
The inventory report for the cash to be destroyed shall be prepared in three copies, two of which shall be retained by the Destruction Committee and one submitted to the Supervisory Board.
In addition to the inventory, Article 9 provides more specific provisions regarding the maintenance of ledgers. The Team 2 Leader and the Team 3 Leader shall maintain summary and detailed ledgers to track the types of currency received, disbursed, and remaining in each team, as well as advance payments; they shall also compile reports on the results of currency counts and destruction on a monthly, semi-annual, per destruction batch, and annual basis.
The reporting regime is also amended in Article 10. Each month, the destruction clusters shall compile data on currency destruction and the results of such destruction to report to the Chair of the Destruction Council and submit to the Supervisory Council.
For interim and year-end reports, the Currency Destruction Council, in coordination with the Supervisory Council, shall prepare reports on currency destruction operations and the supervision of currency destruction to be submitted to the Governor of the State Bank of Vietnam. The reports must include information on the organization of currency destruction operations; data on the actual amounts of each type of currency destroyed; compliance with currency destruction regulations and internal operating procedures; currency destruction oversight activities; and recommendations, proposals, and directions for implementing currency destruction and oversight tasks.
Article 11 also amends the responsibilities of the Issuance and Treasury Department. Accordingly, this unit is responsible for developing and submitting to the Governor of the State Bank of Vietnam for approval the standards for the receipt, delivery, counting, and cutting/destruction of currency, as well as the currency destruction plan.
In addition to changes in operational procedures, Article 13 updates certain terminology to align with the State Bank of Vietnam’s current organizational structure. Specifically, “State Bank of Vietnam provincial and municipal branches” is replaced with “State Bank of Vietnam regional branches”; “provincial or municipal jurisdiction” is replaced by “regional jurisdiction”; and “Internal Audit Department” is replaced by “State Bank of Vietnam Inspectorate.”
Circular No. 42/2026/TT-State Bank of Vietnam takes effect on October 10, 2026.