Monday,  Sep 24, 2018,06:49 (GMT+7) 0 0
Banks to increase ATM fee in mid-July
The Saigon Times Daily
Monday,  Jul 9, 2018,18:30 (GMT+7)

Banks to increase ATM fee in mid-July

The Saigon Times Daily

Many people are in line to withdraw cash from automated teller machines in HCMC – PHOTO: THANH HOA

HCMC – Major commercial banks are set to raise charges on cash withdrawals from automated teller machines (ATMs), starting July 15, reported the local media.

Bank for Foreign Trade of Vietnam (Vietcombank) said in a statement that the bank would increase its ATM cash withdrawal fee by half to VND1,650 from the current VND1,100 for each transaction in its system from the middle of this month. The interbank transfer fee at ATMs will still be capped at VND3,300 per transaction.

Meanwhile, the cash withdrawal fee for Vietcombank card holders at other banks’ ATMs is kept unchanged at VND3,300 per transaction, while the money transfer fee beyond its system is at VND5,500.

Vietnam Bank for Agriculture and Rural Development, Vietnam Bank for Industry and Trade and Bank for Investment and Development of Vietnam will also hike their ATM cash withdrawal fees to VND1,650 per transaction in their systems later this month.

According to some banks, the fee hike is aimed at offsetting costs for ATM and e-banking development and encouraging customers to use non-cash banking services.

Meanwhile, many customers have complained that the quality of banking services has not improved despite fee hikes.

Circular 35 of the State Bank of Vietnam (SBV), which was issued in 2012, has allowed local banks to collect ATM fees from March 2013. The maximum fee of VND3,300 for each transaction has been imposed since 2015, but most banks have kept their fees at either VND1,100 or VND1,650.

In May, SBV directed commercial banks to stop hiking ATM cash withdrawal fees as multiple banks had rushed to raise their ATM and Internet Banking service charges.

The central bank agreed that the local banks could decide their own fees within the fee framework. However, they should also consider the interests of customers to ensure balance between the two sides in any fee adjustments.

Data from the Vietnam Banks Association show that the country has some 77 million banking cards of different types, including 70 million ATM cards. Notably, commercial banks have a large proportion of ATM cards, so adjustments in their service fees are likely to affect their own customers.

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