New Significant Points in Decree 52/2024/ND-CP on Cashless Payment from July 01, 2024
Notable New Points in Decree No. 52/2024/ND-CP on Cashless Payments from July 1, 2024?
On May 15, 2024, the Government of Vietnam issued Decree No. 52/2024/ND-CP, which regulates cashless payments. The following are some notable points:
First, Supplementary Regulations on Electronic Money:
Decree No. 52/2024/ND-CP supplements several regulations on electronic money, including:
- Definition of electronic money as per Clause 12, Article 3 of Decree No. 52/2024/ND-CP.
- Specific regulations on the forms of electronic money used in payment activities, including e-wallets, prepaid cards as per Article 6 of Decree No. 52/2024/ND-CP.
Second, Supplementary Regulations on International Payments:
- Clause 8, Article 3 of Decree No. 52/2024/ND-CP supplements regulations to clarify the concept of international payments and international payment systems.
- Regulations on the provision of services from abroad into Vietnam and from Vietnam abroad, the implementation of international financial switch services, are detailed in Article 5 of Decree No. 52/2024/ND-CP.
Third, Amendment and Supplement of Regulations on Opening and Using Payment Accounts:
- Articles 9 through 16 of Decree No. 52/2024/ND-CP have been amended and supplemented to better align with practical requirements, including regulations on opening and using payment accounts, authorizing the use of payment accounts, freezing payment accounts, post-unfreezing account handling, cases of account closures, and handling balances upon account closure.
Fourth, Supplementary Regulations on Providing Payment Services without Customer Payment Accounts for Public Utility Service Providers:
- Articles 18 through 20 of Decree No. 52/2024/ND-CP include regulations on the provision of payment services without customer payment accounts.
This includes specific regulations on the scope of entities allowed to provide these services (comprising banks, people's credit funds, microfinance institutions, and public utility postal service providers); conditions, dossiers, procedures, and processes for approval or revocation of documents on provision of payment services without customer payment accounts by public utility postal service providers.
Notable New Points in Decree No. 52/2024/ND-CP on Cashless Payments from July 1, 2024?
Which Acts are Prohibited in Cashless Payments?
According to the provisions of Article 8 of Decree No. 52/2024/ND-CP, prohibited acts in cashless payments include:
- Altering, erasing payment instruments, payment documents unlawfully; forging payment instruments, payment documents; storing, circulating, transferring, using fake payment instruments.
- Intruding or attempting to intrude, stealing data, destroying, illicitly altering software programs, electronic data used in payment; exploiting network system errors for profit.
- Providing dishonest information related to the provision or use of payment services, intermediary payment services.
- Disclosing, providing information on the balance of payment accounts, bank card balances, e-wallet balances, and payment transactions of customers to payment service providers, intermediary payment service providers contrary to applicable laws.
- Opening or maintaining anonymous, pseudonymous payment accounts or e-wallets; buying, selling, renting, leasing, borrowing, lending payment accounts, e-wallets; renting, leasing, buying, selling, opening bank cards on behalf (except for anonymous prepaid cards); stealing, colluding to steal, buying, selling payment account information, bank card information, e-wallet information.
- Issuing, providing, and using illegal payment instruments.
- Providing intermediary payment services without a license issued by the State Bank. Providing payment services without being a licensed provider.
- Performing, organizing, or facilitating acts of using, exploiting payment accounts, payment instruments, payment services, intermediary payment services for gambling, organizing gambling, fraud, illegal business activities, and other illegal acts.
- Erasing, altering the content, buying, selling, transferring, renting, lending, forging the license for providing intermediary payment services.
- Entrusting or authorizing other organizations or individuals to perform authorized activities as per the intermediary payment service provider's license.
- Committing fraud or forging documents to meet the conditions for being issued a license for intermediary payment services.
- Engaging in activities that deviate from the stipulations within the intermediary payment service provider's license.
- Account holders with payment accounts at a payment service providing organization providing false information or committing to not having a payment account at said organization to parties with legal rights and obligations as stipulated by the law on disbursing loans from credit institutions, foreign bank branches.
Responsibilities of the State Bank in Managing Cashless Payment Activities?
According to Article 4 of Decree No. 52/2024/ND-CP, the State Bank's responsibilities in managing cashless payment activities include:
- Issuing legal normative documents or submitting to competent authorities for the issuance of legal documents on cashless payment activities; regulating the management, connection, and data sharing for cashless payment activities.
- Organizing, managing, operating, and supervising the national payment system; participating in organizing, supervising the operation of other crucial payment systems in the economy; supervising the provision of payment services and intermediary payment services.
- Approving in writing the participation of commercial banks and foreign bank branches in international payment systems.
- Issuing, amending, supplementing, and revoking licenses for providing intermediary payment services to intermediary payment service providers.
- Approving and revoking documents on providing payment services without customer payment accounts by public utility postal service providers.
- Inspecting, supervising, and handling violations in cashless payment activities conducted by organizations, individuals per the law.
- Managing international cooperation activities in the payment field; presiding, coordinating with relevant agencies in managing international payment activities.
Decree No. 52/2024/ND-CP comes into effect on July 01, 2024.
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