The State Bank of Vietnam has directed credit institutions and foreign bank branches to slash transaction fees to provide COVID-19 relief for customers.
|The SBV believes the bank support will promote cashless payments and accelerate the digital economy too |
Accordingly, the State Bank of Vietnam's (SBV) National Payment Corporation of Vietnam (NAPAS) will cut ATM and point-of-sale (POS) transaction fees by 50-75 per cent from August 1 to December 31. Based on the fee rates adjusted by NAPAS, credit institutions and foreign bank branches will have to reduce transaction fees at ATMs and POS units under NAPAS and 24/7 interbank transfer transaction fees for customers.
The SBV encourages credit institutions and foreign bank branches to make a bigger reduction for their customers than that of NAPAS. This is the second fee reduction from NAPAS this year. Thus, member banks can continue to waive and reduce non-cash payment service fees for customers during the pandemic.
Nguyen Dang Hung, deputy general director of NAPAS, said, "As a provider of retail payment infrastructure for the economy, NAPAS has made a number of fee exemptions and reductions for banks and businesses during the pandemic. We would like to share the difficulties of banks, businesses, and people affected by the epidemic, realising the dual goal of fighting the epidemic and developing the economy."
He also expected the move to will promote cashless payments in Vietnam by changing consumer habits and lowering administrative costs for government agencies.
In 2020, NAPAS reduced service fees three times, foregoing a total of VND530 billion ($23 million) in fees.
In 2021, NAPAS continues COVID-19 relief measures by applying a new fee policy from June 1 with lower service fees. In addition, NAPAS also exempts transfer fees to bank accounts related to the government's COVID-19 Vaccine Fund. A total of 203,545 transactions have been made to support the fund with VND137.7 billion ($5.99 million).