By the end of 2020, SBV’s payment service fee collection may decrease by about 285b dong

25-Sep-2020 Intellasia | Dau tu Chung khoan | 6:02 AM Print This Post

In the first seven months of 2020, the total number of transactions via the interbank electronic payment system reached 82.2 million items, worth 59.1 million dong (up 13.61 percent in transaction value compared to in the same period in 2019)

Answering the question of the Securities Investment newspaper about the implementation of eKYC in opening and using payment accounts, Nghiem Thanh Son, deputy Department of Payment, the State Bank of Vietnam (SBV) said that they had currently issued a draft Circular amending and supplementing Circular 23/2014/TT-NHNN dated August 19, 2014, guiding the opening and use of a payment account at a payment service supplier. The draft Circular had been posted on the website of SBV for public opinion. Currently, SBV was completing the procedures to submit to the leaders for signing and issuing as soon as possible, Son said.

According to Son, in the draft Circular, there were provisions to give banks the initiative to decide measures and technologies to identify and verify customers who opened payment accounts via electronic and online methods. However, to ensure safety and control risks, the draft Circular had set some primary limits and control measures for opening accounts with eKYC.

The Circular mentioned some including requirements. Banks must have appropriate solutions and technology to check and correctly match customer identification information (including biometric factors) with information on personal identification such as citizenship identity, ID card, the passport of the customer opening the account, or with personal identification data verified by a competent authority or by another credit institution.

SBV expected that the national database on population would combine with biometric information (portrait photos, identity features, fingerprints) and allow sharing and feedback request for citizen biometric information and data, which would serve the needs of identifying and authenticating customers electronically not only in bank account opening but also helping customers to register for services (such as insurance, telecommunications), contributing to improving the quality of service to people (fast, safe, low cost), Son said.

For the development of digital banking in the near future, Son specifically informed, implementing the task of managing digital banking operations, SBV No.711/QD-NHNN dated April 15, 2020, on the action plan to carry out Directive No.01/CT-TTg dated 14/1/2020 of the prime minister on promoting the development of Vietnamese digital technology enterprises.

Decision No.1238/QD-NHNN dated 8/7/2020 on the action plan of the banking sector had implemented the Resolution No.50/NQ-CP dated 17/4/2020 of the government on the Politburo’s Resolution No.52-NQ/TW dated September 27, 2019, on several guidelines and policies to participate in the 4th Industrial Revolution actively. SBV was conducting a survey about digital banking operations at credit institutions, foreign bank branches in Vietnam (Official Letter No.5753/NHNN-TT dated August 11, 2020), from which an overview of the current changing the number of the banking industry and the opportunities and challenges that banks were facing. At the same time, SBV had also grasped the recommendations of banks to serve the advisory work, propose building mechanisms and policies to promote technology application, innovation in Vietnamese banking operations, Son emphasized.

Son added that payment activities, especially non-cash payments and public service payments in Q3/2020, continued to have strong growth, contributing to solving difficulties for business production. business, ensuring social security

Specifically, Son informed that in the first seven months of 2020, the total number of transactions via the interbank electronic payment system reached 82.2 million items, worth 59.1 million billion dong (up 13, 61 percent of transaction value over the same period in 2019). Switching system clearing retail transactions reached 606.3 million pieces and reached 4.9 quadrillion dong (up 74.07 percent in quantity and 106.9 percent in value over the same period in 2019).

The number of payment transactions via card was nearly 205.6 million with a value of nearly 475.9 trillion dong (up 29.7 percent and 15.8 percent respectively over the same period in 2019). The number of payment transactions via the Internet reached 240.9 million transactions with a value of 15.2 quadrillion dong (up 39.1 percent in value over the same period in 2019). The number of payment transactions via mobile phones reached 574.4 million transactions with a value of 5.9 quadrillion dong (up 184.2 percent in volume and 186.3 percent in value over the same period in 2019).

Besides, Son said, the galaxy card was still growing. As of the end of July 2020, the number of cards in circulation reached 107.7 million cards, increasing by 15.2 percent over the same period in 2019. In order to ensure compliance with international standards, security, safety, and increase the convenience of using cards, SBV had been urging the units to comply with the schedule of switching from magnetic card to chip card in Vietnam. It was expected that by the end of 2021, the conversion to chip cards would be completed for all domestic cards, Son said.

Simultaneously, commercial banks continued to carry out many programmes to exempt and reduce online payment service fees to support people and businesses affected by Covid-19. Precisely, for interbank transactions, all banks had adjusted to reduce money transfer fees through the interbank electronic payment system for customers equivalent to the amount of fee reduction that SBV had reduced according to Circular No.04/2020/TT-NHNN.

Hopefully, by the end of 2020, the collection of payment service charges of SBV would decrease by about 285 billion dong to support credit institutions accompanying people and businesses.

For interbank money transfer fees via Napas’s 24/7 system, 45 out of 45 banks had implemented fee exemption/reduction policies for customers for small value transactions (from 2 million dong or less).

Accordingly, about 63 percent of customers’ payment transactions via Napas were exempted or reduced. It was estimated that the total amount of payment service fee that banks would exempt or reduce for customers by the end of 2020 after two fee cuts was about 1.004 trillion dong.


Category: Finance, Vietnam

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