Saturday, August 19, 2017 - 18:20:31

State Bank seeks to curb cash transactions

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The State Bank of Vietnam (SBV) seeks to limit the use or cash for large transactions like the purchase of motorbikes, cars and property by preparing a draft decree on the issue.

Intended to replace the 2006 decree on cash payment, the new legislation will be submitted to the Government before this year, according to Director of the SBV’s Payment Department Bui Quang Tien.

The decree aims to weaken the black market economy by making commercial transactions more transparent.

Restricting cash payments is expected to help the country fight tax evasion, as well as counterfeit money production and money laundering.

For the first time, individuals will not be allowed to pay for securities, houses, land and large vehicles with cash.

Organisations will not be allowed to use cash for transactions relating to real estate, securities, aircraft, ships and cars, or for transactions exceeding the limit set by the central bank.

The draft decree is among several measures the SBV has proposed to speed up its project on non-cash payment, which aims to have 150,000 Point of Sales (POS) nationwide by 2015. Currently there are 94,000.

According to the SBV, by last September, the market had nearly 51 million bank cards including debit cards, credit cards and prepaid cards.

But after nearly 20 years, millions of Vietnam ’s ATM cards are still used to withdraw money at ATMs instead of performing non-cash transactions, said a representative of Vietnam Cards Association.

He attributed the lack of change to the fact that many supermarkets and shopping centres still preferred customers to pay in cash rather than bank card.

The draft asks other ministries and agencies including the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Construction, the Ministry of Natural Resources and Environment and the Ministry of Public Security to take responsibility for popularising the use of bank cards and other non-cash forms of payment.-VNA
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