Banks told not to raise ATM cash withdrawal fees
Banks told not to raise ATM cash withdrawal fees
The State Bank of Viet Nam (SBV) on Tuesday directed commercial banks not to increase ATM fees after some commercial banks announced plans to hike fees from the middle of this month.
The move comes after Vietinbank, Vietcombank, BIDV and Agribank announced they would increase service fees for ATM cash withdrawals from VND1,100 to VND1,650 for each transaction from July 15.
This is the second time the SBV has thwarted plans to raise fees in the past two months. On May 9, banks were instructed to cancel their plans for fee hikes after a public backlash.
If the plan has been approved nearly 49 million ATM card holders would have been affected as the four banks currently account for 63 per cent of the country’s total ATM market share.
According to an SBV representative, the bank has framework for ATM cash withdrawal fees and commercial banks are required to follow it.
The central bank’s Circular 35, which came out in 2012, allows banks to start collecting ATM fees from March 2013. A maximum fee of VND3,300 for each transaction has been permitted since 2015, but most banks have kept their fees at VND1,100.
However, the representative said that the adjustments do not violate regulations, but noting that banks should seek consensus from customers and ensure the interests of customers and banks.
