Vietnam state bank proposes fee on cash deposits

Thanh Nien News

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In its latest efforts to restrict cash transactions, the State Bank of Vietnam has proposed new rules that would allow local banks to collect fees on cash deposits, VnExpress reported Friday.
Under the central bank’s new draft circular, banks can set their own fees no higher than 0.03 percent of the transaction value.
Under the rule, Banks can opt not to charge their customers, the newspaper quoted the bank as saying.
Local banks already collect fees (usually 0.03 percent) when their customers deposit money into an account that is based in a different province or city, VnExpress reported.
According to the central bank, the latest proposal is part of its effort to restrict cash transactions in Vietnam, reducing relevant costs and increasing the quality of local banks’ non-cash services.
Vietnam’s existing laws allow banks to charge their customers a 0-0.05 percent fee on withdrawals.
Figures from the state bank’s Department of Payment showed that 20.3 percent of transactions were conducted via cash in 2004.
That rate fell to 14 percent in 2010 and over 11 percent now, which according to many experts, is still high compared to other countries.
More than 68.5 million bank cards have been issued in Vietnam, but most of the cards are used for cash withdrawals, the department said.
Last month the central bank reported that over 28 million transactions were conducted via credit card in Vietnam last year, up 34 percent year on year.

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