Guidance on determining temporary adjustment of intraday net debit caps in the National Interbank Electronic Payment System in Vietnam from August 15, 2024
Guidance on determining temporary adjustment of intraday net debit caps in the National Interbank Electronic Payment System in Vietnam from August 15, 2024
Pursuant to Clause 3, Article 16 of Circular 08/2024/TT-NHNN, the regulation on temporary adjustment of intraday net debit caps is specified as follows:
Net debit caps
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3. Adjustment of Temporary Intraday Net debit caps
a) During the working day, if a member requests an increase in the temporary intraday Net debit cap, the additional temporary intraday net debt value will apply the corresponding collateral ratio as specified at point a(i) clause 2 of this Article.
If a member uses valuable papers or deposit money to request an increase in the Net debit cap, the member must provide additional collateral with valuable papers or by increasing the deposit money. If a member uses the account balance to request an increase in the Net debit cap, the Exchange shall debit the member's account to provide the additional collateral. If the additional collateral is insufficient, the request will not be carried out;
After completing the settlement of the low-value clearing of the day, the Exchange shall return the valuable papers and additional collateral at the member's request; meanwhile, the temporary intraday Net debit cap shall be adjusted to be equal to the Net debit cap. The temporary intraday Net debit cap is determined as follows:
Temporary intraday Net debit cap = Net debit cap + additional temporary intraday net debt value;
b) If the member needs to reduce the temporary intraday Net debit cap to ensure the member's payment capability, the Exchange shall adjust the temporary intraday Net debit cap at the member's request and ensure the collateral ratio as regulated. The value reduction in the Net debit cap will apply the collateral ratio corresponding to the previously applied ratios. After completing the low-value clearing settlement, the temporary intraday Net debit cap shall be adjusted to be equal to the Net debit cap. The temporary intraday Net debit cap is determined as follows:
Temporary intraday Net debit cap = Net debit cap - temporary intraday net debt value reduction.
Starting from August 15, 2024, the adjustment of the temporary intraday Net debit cap is specifically determined as follows:
(1) Increasing the Temporary Intraday Net debit cap
- During the working day, if a member requests an increase in the temporary intraday Net debit cap, the Exchange will apply the corresponding collateral ratio as regulated at point a(i) clause 2 Article 16 of Circular 08/2024/TT-NHNN. Specifically:
If the member requests an increase in the Net debit cap, the Exchange considers applying a 100% collateral ratio for the additional net debt value exceeding 150% of the initial Net debit cap; the additional net debt value not exceeding 150% of the initial Net debit cap will apply the minimum collateral ratio as regulated;
Members may use valuable papers and deposit money to request an increase in the Net debit cap. If using the account balance to request, the Exchange will debit the money from this account to provide the additional collateral.
After completing the low-value clearing settlement of the day, the Exchange will return the valuable papers and additional collateral upon the member's request.
The temporary intraday Net debit cap is calculated as follows:
Temporary Intraday Net debit cap = Net debit cap + Additional Temporary Intraday Net Debt Value.
(2) Decreasing the Temporary Intraday Net debit cap
- If a member needs to reduce the temporary intraday Net debit cap to ensure payment capability, the Exchange will adjust the reduction as requested and ensure the collateral ratio as regulated.
The value reduction in the Net debit cap will apply the collateral ratio corresponding to the previously applied ratios.
After completing the low-value clearing settlement, the temporary intraday Net debit cap shall be adjusted to be equal to the Net debit cap.
The temporary intraday Net debit cap is calculated as follows:
Temporary Intraday Net debit cap = Net debit cap - Temporary Intraday Net Debt Value Reduction.
Guidance on determining temporary adjustment of intraday net debit caps in the National Interbank Electronic Payment System in Vietnam from August 15, 2024 (Internet image)
How is the Current Net Debt Managed in Vietnam?
According to Clause 4, Article 16 of Circular 08/2024/TT-NHNN, the regulation on managing the current Net debit cap is specified as follows:
| Current Net debit cap = Temporary Intraday Net debit cap + Total Receivables from Low-Value Payment Orders from the Beginning of the Day - Total Payables from Low-Value Payment Orders from the Beginning of the Day; |
- At the beginning of the working day, participants in the low-value payment service are granted Net debit caps. At any time during the working day, the current Net debit cap may change (increase or decrease) depending on the low-value payment activities of the members and member units. The current Net debit cap is the basis for executing the low-value payment service of the members and member units.
How to Adjust the Net debit cap in the National Interbank Electronic Payment System in Vietnam?
According to Clause 2, Article 16 of Circular 08/2024/TT-NHNN, the regulation on adjusting Net debit caps is specified as follows:
(1) During the period of setting Net debit caps, each member may request the Exchange to adjust the Net debit cap based on valuable papers, deposit money, and the member's expected payment situation.
+ If a member needs to increase the Net debit cap, the Exchange considers applying a 100% collateral ratio for the additional net debt value exceeding 150% of the initial Net debit cap; the additional net debt value not exceeding 150% of the initial Net debit cap will apply the minimum collateral ratio as regulated;
+ If a member needs to reduce the Net debit cap, the reduction value will apply the corresponding collateral ratios as previously applied;
(2) The Exchange shall adjust the Net debit cap to zero if the member has clearing payment debt at the Exchange.
The adjustment of the Net debit cap is conducted during the period of setting Net debit caps. Each member may request the Exchange to adjust the Net debit cap based on valuable papers proving their value, deposit money, and their expected payment situation.
Note: Circular 08/2024/TT-NHNN is effective in Vietnam from August 15, 2024.
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