From July 1, 2024, what will be the transaction limits for operation of payment agents in Vietnamese dong under Circular 07/2024/TT-NHNN?
From July 1, 2024, what will be the transaction limits for operation of payment agents in Vietnamese dong under Circular 07/2024/TT-NHNN?
Based on Article 5 of Circular 07/2024/TT-NHNN, the transaction limits for operation of payment agents in Vietnamese dong are as follows:
(1) The principal must implement measures to manage the balance and transaction limits of the agency, which is another organization, including:
- The transaction limit (including deposits and withdrawals) for individual customers is capped at 20 million VND/customer/day;
- The agent is only permitted to execute transactions for customers within the account balance range for the authorized tasks of the agent's payment account at the principal according to the regulations in Clause 4, Article 7 of Circular 07/2024/TT-NHNN, and each payment point is allowed to transact a maximum of 200 million VND/day and 5 billion VND/month.
(2) The transaction limits for the agent, whether a commercial bank, cooperative bank, foreign bank branch, people's credit fund, or microfinance institution, shall be agreed upon between the principal and the agent.
From July 1, 2024, what will be the transaction limits for operation of payment agents in Vietnamese dong under Circular 07/2024/TT-NHNN? (Internet image)
What are principle of carrying out payment agent operation in Vietnam?
Based on Article 7 of Circular 07/2024/TT-NHNN, the principle of carrying out payment agent operation in Vietnam are as follows:
- Payment agency activities must be established by a written contract between the principal and the agent as regulated in this Circular and other relevant legal regulations.
- The principal may authorize the agent to perform the tasks stipulated in Article 4 of Circular 07/2024/TT-NHNN, in line with the provisions in the Establishment and Operation License or the Establishment License or Decision on organization and operation of the competent authority, including any amendments or supplements (if any) of the principal and the agent being a credit institution or foreign bank branch.
- The agent is not permitted to delegate its agency role to a third party.
- For the tasks stipulated in Clause 3, Article 4 of Circular 07/2024/TT-NHNN, the agent, which is another organization, must open and maintain a payment account at the principal to carry out the authorized tasks within the balance agreed upon by the principal and the agent.
This payment account must be separate from payment accounts used for other activities and purposes of the agent opened at the principal.
- The principal charges customers through the agent according to the fee schedule set by the principal at specific times. Neither the principal nor the agent is allowed to collect additional fees beyond those specified in the fee schedule published by the principal.
The principal's service fee schedule must clearly state the types of fees and applicable rates for each type of service, in compliance with legal regulations, and must be publicly listed at payment agency points and on the agent's website (if any).
- The principal and the agent must commit to protecting customer information in accordance with the Law on Credit Institutions, guiding documents, and other related legal regulations.
- The principal is allowed to enter into payment agency contracts with other organizations nationwide. The number of payment agency points of these organizations must ensure that points in district-level areas (excluding districts, district-level towns, cities in provinces, cities under central authority) account for over 70% of the principal's payment agency points.
- The quantity of payment agents, who are credit institutions or foreign bank branches, is determined by the principal in line with its management capacity. The number of payment agency points of credit institutions or foreign bank branches is determined by the credit institution or branch based on their operational network.
What is operation of Principals and Agents in Vietnam?
Based on Article 6 of Circular 07/2024/TT-NHNN, the operation of Principals and Agents is defined as follows:
(1) The performance of principal and agency roles by commercial banks, cooperative banks, foreign bank branches, people's credit funds, and microfinance institutions must align with the content in the Establishment and Operation License or the Establishment License or Decision on organization and operation by the competent authority, and any amendments or supplements (if any).
(2) People's credit funds are authorized to act as agents for cooperative banks for their members and customers.
(3) Microfinance organizations are authorized to act as agents for banks for their customers.
(4) Other organizations legally established as businesses may act as agents under an agreement with the principal.
(5) Commercial banks, cooperative banks, foreign bank branches, and microfinance institutions are allowed to act as agents for multiple principals. Other organizations are permitted to act as agents for only one principal.
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