The fees for fast interbank fund transfers will be cut for the second time this year to promote cashless payments amid the rapid spread of the COVID-19 outbreak, the National Payment Corporation of Vietnam (NAPAS) announced on March 16.

A payment transaction conducted via QR code. Vietnam is promoting cashless payments
as a measure to fight against the COVID-19 pandemic. (Photo vietnamnet.vn)

Specifically, NAPAS will reduce interbank fund transfer fees by half, from currently VND1,800 to VND900, for transactions of sums worth from VND500,001 (about US$21) to VND2 million each, starting from March 25 to the end of December 31.

This move will enable local banks to cut the fees for interbank fund transfer for customers, NAPAS said.

The State Bank of Vietnam has asked commercial banks and branches of foreign banks to reduce the fees for interbank fund transfers by at least VND900 per transaction and encouraged to offer bigger reductions.

The central bank has also allowed the National Credit Information Centre of Vietnam (CIC) to reduce the fees on local banks for using credit information, from March 1 to the end of this year.

On February 25, NAPAS cut the fee for electronic switching from VND1,800 to VND500 per transaction for sums worth VND500,000 or less.

To date, 39 out of 45 member banks of NAPAS cut fees for customers by 90% and even some offered zero charges for fast interbank fund transfers, following the NAPAS’s move in February.

Promoting cashless payment was highlighted as one of important measures to remove difficulties for business and production amid the outbreak of the COVID-19.

A survey by IDG Vietnam, a member of the International Data Group, in 2019 revealed that cash payments still account for 79% in Vietnam.

Under the cashless payment development project for 2016-20, Vietnam targeted that cash would account for 10% of the total money in circulation by the end of 2020.

Recently, Prime Minister Nguyen Xuan Phuc asked the central bank to submit a pilot project about mobile money.