Last update: 17:03 | 10/07/2018
Commercial banks have yet to be allowed to hike fees for ATM cash withdrawals, the State Bank of Vietnam (SBV) announced on July 10.
People are lining up to withdraw money at Vietcombank's ATMs.
This is the second time the central bank has required the commercial banks to postpone the service fee hike. The first order was given two months ago.
Earlier, three big banks - Vietinbank, Vietcombank and BIDV - said they will officially increase service fees for ATM cash withdrawals from 1,100 VND to 1,650 VND for each transaction in their system from the middle of this month.
They had to hold back their plan after the central bank in May asked them to do so as the public expressed disagreement over the intended fee hike for the services at many banks.
The commercial banks have to collect and process data and announce them to prove the necessity of the fee hike, the SBV said, adding that the work will require more time to be completed, thus making it impossible for the banks to go ahead with their plan of starting to collect the new service fee on July 15.
The SBV regulates a fee framework for ATM cash withdrawals which allow commercial banks to collect the maximum of 3,000 VND, excluding VAT, for each transaction but the three banks have kept their fees at 1,000 VND, excluding VAT, or 1,100 VND when VAT is included.
“The fee hike does not violate the SBV’s regulations and the banks are totally entitled to do so; but it is the central bank’s stance that the commercial banks have to make the information transparent and build a consensus among their customers before raising fees,” a representative of the SBV stated.
While Vietnamese banks have been still busy collecting fees on ATM withdrawals as well as online and mobile banking, e-wallet service providers are applying free services to attract customers. Many customers are turning towards e-wallets to pay bills, shop and transfer money.–VNA