Central bank puts brake on ATM withdrawal charges

As several local lenders planned to raise fees for cash withdrawals at ATMs, the State Bank of Vietnam put brake on the fee hike, the central bank confirmed the news yesterday.

Central bank puts brake on ATM withdrawal charges

This is the second time the central bank has requested Agribank, Vietcombank, and Vietinbank and BIDV to postpone a rise of ATM withdrawal fee as the four banks announced plans to elevate service fees for ATM cash withdrawals from VND1,100 to VND1,560 per transaction from July 15.
In May, these banks announced to lift fee of ATM withdrawal. However the central intervened to mitigate a public backlash.  
The central bank said fee rise must get consumers' consensus after they all are informed it.
Moreover, banks must ensure transparency in activities to guarantee the benefit of two sides.
Whereas banks said they suffer losses; accordingly they raise charge as compensation.
As per the Vietnam Bank Association's figure, 77 million various bank cards nationwide has 70 million being ATM cards.
The three credit institutions collectively have about 45.5 million ATM cards in circulation, accounting for nearly 65 percent of Vietnam’s total. Therefore fee hike will affect a large number of customers.

By NHUNG NGUYEN - Translated by UYEN PHUONG

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