PM orders acceleration of non-cash payment development
The Prime Minister has issued Directive No. 22/CT-TTg figuring out measures to accelerate the implementation of a scheme on development of non-cash payment in Viet Nam.
The Prime Minister has issued Directive No. 22/CT-TTg on enhancing the implementation of measures to develop non-cash payment in Viet Nam.
On December 30, 2016, the Government has issued Decision No. 2545/QD-TTg approving a scheme on development of non-cash payment for the period of 2016-2020 with an ambitous goal of slashing the ratio of cash to total payment instruments to below 10%.
Under the scheme, the Government targeted installment of more than 300,000 card readers at points of sales (POS) to process around 200 million transactions annually in the market by 2020.
Specifically, 100% of supermarkets, shopping centers and modern distribution facilities have card readers enabling consumers to make non-cash payments when purchasing goods.
It is expected that 70% of providers of electricity, water, telecom and communication services accept non-cash payment of bills from individuals and households.
As many as 50% of individuals and households in big cities use non-cash payment instruments in shopping and consumption activities.
However, the ratio of cash to total payment instruments was high (11.33%) as of December 31, 2019 as many people still use cash, particularly in rural and remote areas.
Strengthening implementation of the scheme
In an effort to foster non-cash payment, the Government chief urged ministries, agencies and localities to actively realize the goals rolled out in the aforesaid decision.
Accordingly, the State Bank of Viet Nam was asked to promptly review and complete legal framework for non-cash payment and e-payment and submit a draft Decree on non-cash payment to the Government before July 1, 2020 for approval
The central bank was tasked to develop Automated Clearing House (ACH) system for retail sale payments and put the system into operation prior to December 15, 2020.
It is also responsible for designing and applying Know-Your-Customer (KYC) solutions to promote the access and use of retail payment services while strengthening inspection and supervision of money laundering and terrorist financing to ensure effectiveness and security of non-cash payment and e-payment.
Meanwhile, the Ministry of Industry and Trade must complete mechanisms and policies to facilitate retail sale establishments to accept and use e-payment devices.
The Ministry of Health shall direct hospitals to join hands with credit organizations and payment intermediary services to collect health service fees in form of non-cash payment methods.
The Ministry of Education and Training shall guide schools to coordinate with credit organizations and payment intermediary services to collect education fees in non-cash payment.
The Ministry of Transport shall promptly issue policies to encourage the development multi-purpose and non-physical cards for car purchase and toll collection.
The Prime Minister has issued Directive No. 22/CT-TTg on enhancing the implementation of measures to develop non-cash payment in Viet Nam.
On December 30, 2016, the Government has issued Decision No. 2545/QD-TTg approving a scheme on development of non-cash payment for the period of 2016-2020 with an ambitous goal of slashing the ratio of cash to total payment instruments to below 10%.
Under the scheme, the Government targeted installment of more than 300,000 card readers at points of sales (POS) to process around 200 million transactions annually in the market by 2020.
Specifically, 100% of supermarkets, shopping centers and modern distribution facilities have card readers enabling consumers to make non-cash payments when purchasing goods.
It is expected that 70% of providers of electricity, water, telecom and communication services accept non-cash payment of bills from individuals and households.
As many as 50% of individuals and households in big cities use non-cash payment instruments in shopping and consumption activities.
However, the ratio of cash to total payment instruments was high (11.33%) as of December 31, 2019 as many people still use cash, particularly in rural and remote areas.
Strengthening implementation of the scheme
In an effort to foster non-cash payment, the Government chief urged ministries, agencies and localities to actively realize the goals rolled out in the aforesaid decision.
Accordingly, the State Bank of Viet Nam was asked to promptly review and complete legal framework for non-cash payment and e-payment and submit a draft Decree on non-cash payment to the Government before July 1, 2020 for approval
The central bank was tasked to develop Automated Clearing House (ACH) system for retail sale payments and put the system into operation prior to December 15, 2020.
It is also responsible for designing and applying Know-Your-Customer (KYC) solutions to promote the access and use of retail payment services while strengthening inspection and supervision of money laundering and terrorist financing to ensure effectiveness and security of non-cash payment and e-payment.
Meanwhile, the Ministry of Industry and Trade must complete mechanisms and policies to facilitate retail sale establishments to accept and use e-payment devices.
The Ministry of Health shall direct hospitals to join hands with credit organizations and payment intermediary services to collect health service fees in form of non-cash payment methods.
The Ministry of Education and Training shall guide schools to coordinate with credit organizations and payment intermediary services to collect education fees in non-cash payment.
The Ministry of Transport shall promptly issue policies to encourage the development multi-purpose and non-physical cards for car purchase and toll collection.
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