State Bank to issue fines if ATMs fail to deliver

State Bank to issue fines if ATMs fail to deliver

Commercial banks that fail to ensure smooth and stable operation of their automatic teller machine (ATM) systems during the coming lunar new year holiday will be fined, said the director of the State Bank of Viet Nam’s payment department, Bui Quang Tien.

The State Bank made the announcement yesterday after reports that many ATMs around the country have already run out of cash or fallen out of service in the peak shopping period running up to the beginning of Tet this weekend.

Only last week, the State Bank ordered commercial banks to urgently inspect their ATM networks and arrange for sufficient personnel to monitor their operations and refill them with cash in a timely manner. The State Bank has also encouraged banks to raise the limit for a single ATM withdrawal to more than VND2 million as currently in order to relieve some of the demand on ATM networks.

However, many ATM cardholders have already reported difficulties in withdrawing cash at many ATMs.

Banks have admitted that demand for cash peaks in the run-up to Tet, especially at ATMs in crowded urban areas, putting bank personnel under considerable pressure to meet customer needs. They recommend cardholders withdraw cash from ATMs as early as possible ahead of Tet or make withdrawals at bank offices.

A regulation allowing banks to collect fees on debit card transactions will take effect at the beginning of next month. The State Bank has therefore also ordered card issuers to prepare and publish their fee schedules for debit card services and report them to the central bank by February 20. Under the the regulations, ATM cardholders can be charged up to VND1,000 per transaction, with the maximum fee to increase to VND2,000 early next year and to VND3,000 in 2015.

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