Commercial banks and branches of foreign banks in Vietnam are urged to reduce their interbank money transfer fees with an aim of supporting local businesses and people to overcome difficulties caused by the latest Covid-19 outbreak and encouraging cashless payments. 

This is the 2nd fee reduction from NAPAS this year. Photo: NAPAS

The request was made by the State Bank of Vietnam (SBV) following the National Payment Corporation of Vietnam (NAPAS)s’ move to cut swipe fees on August 1. The SBV also expected the credit institutions to make the charge cut equal to or greater than NAPAS.

NAPAS has announced that it will cut 50-70% of its current service fees for electronic switching from August 1 to the end of this year.

The cut aims to develop local cashless payment systems and promote the Government's plan to encourage contactless payments to avoid transmission risks amid the pandemic.

Nguyen Dang Hung, Deputy General Director of NAPAS, expected the move could effectively contribute to the banking system as well as support local enterprises and people during the pandemic.

“Increasing cashless transactions would not only change consumer habits but also help Government agencies reduce management and operation costs,” he said.

This is the second fee reduction from NAPAS this year. Last year, the company also forewent a total of VND530 billion (US$23.1 million) in fee cuts.

Last June, statistics from NAPAS showed that 39 out of its 45 banking members cut fees for customers by 90%, and some offered zero charges for fast inter-bank fund transfers of sums worth less than VND2 million ($85) from last February.