NAPAS continues to reduce 50 percent for fees on interbank transfers
For transactions worth from VND 500,000 to VND 2,000,000 when making interbank funds transfers, only half of the fee will be applied, applicable from now until the end of 2020.
In response to the Directive No. 11/CT-TTg dated March 4, 2020 of the Prime Minister on urgent tasks and solutions to remove difficulties for production and business, ensuring social security during Covid-19 epidemic and Official Letter No. 02-CD/NHNN dated March 11, 2020 of the Governor of the State Bank of Vietnam on strengthening the prevention and control of the COVID-19 in the new situation. On March 16, 2020, the National Payment Corporation of Vietnam (NAPAS) announced the second program on reducing service fees for financial switching and electronic clearing for transactions in 2020. Specifically, NAPAS reduces 50 percent for fees on interbank fundstransfers worth VND 500,001 to VND 2,000,000. The duration of application is from March 25 to December 31.
Assessing the impact of this fee reduction, Ms. Nguyen Tu Anh - Chairman of NAPAS Board of Directors, proportion of transactions in the scope of fee reduction for the second time accounts for nearly 40% of transactions made via the NAPAS system. It is expected that both fee reduction programs will reduce nearly 40% of NAPAS's revenue in 2020.
"However, in order to fulfill the mission of the national switching service organization in providing good and convenient retail payment infrastructure so that banks can provide non-cash payment services to people at the most reasonable fee, NAPAS has never set profits as the business goal of the business. Reducing fees means directly reducing the company's revenue but NAPAS is always proactive in implementing this because it is the political mission of the business. In the midst of economic difficulties due to the impact of the COVID-19 outbreak, NAPAS has to make more efforts to accompany and stand side by side with banks, businesses and people." – Chairman of NAPAS said.
NAPAS representative believes that the reduction of fees associated with improving the quality of services and expanding the network is an effective measure in promoting non-cash payments. Statistics show that, from the Lunar New Year to the present, (i.e., since the beginning of the COVID-19 outbreak, NAPAS has cooperated with commercial banks to implement the exemption and reduction of fees with the total number of non-cash payment transactions processed via NAPAS system increased by 76% compared to the same period in 2019. Total transaction value increased 124% compared to the same period in 2019.
Earlier on February 25, NAPAS had implemented a fee exemption program for public services and applied a reduction of 72 percent for switching fees on interbank quick currency transfers worth VND 500,000 and less. By March 16, the program called the participation of 39/45 banks in the fee reduction and exemption program for customers, equivalent to 99.6% of small value interbank money transfer transactions via NAPAS are with fee reduction/exemption.
- The State Bank of Vietnam continued to reduce policy interest rates
- The State Bank and enterprises join hands to promote cashless payments
- Credit growth plummeted due to the impact of COVID-19 pandemic
- Controlling inflation is a top priority
- More positive forecasts about exchange rate stability in 2020
- SBV tightened information security in banking operations
- Helping businesses access capital more easily but not by lowering lending standards
- BVSC: Interest rates are likely to move sideways in the near term
- Digital banking and electronic payment are set to boom in the time of Covid-19
- Non-cash payments have recorded positive changes