Guidance on adjustment of electronic clearing limits in provision of payment intermediary services in Vietnam from July 17, 2024

Guidance on adjustment of electronic clearing limits in provision of payment intermediary services in Vietnam from July 17, 2024 (Image from Internet)

On July 17, 2024, the Governor of the State Bank of Vietnam issued Circular 40/2024/TT-NHNN guiding the provision of payment intermediary services in Vietnam.

Guidance on adjustment of electronic clearing limits in provision of payment intermediary services in Vietnam from July 17, 2024

According to the provisions of Clause 2, Article 11 of Circular 40/2024/TT-NHNN, the adjustment of electronic clearing limits in provision of payment intermediary services in Vietnam is as follows:

- During the electronic clearing limit setting period, settlement members may request the electronic clearing host organization to consider adjusting the electronic clearing limit on the basis of valuable papers, deposit money, and projected payment transaction demand via the Electronic Clearing System:

+ In the case of increasing the electronic clearing limit, the settlement member must supplement valuable papers, deposit money to ensure the deposit meets the requirements outlined in Article 12 of Circular 40/2024/TT-NHNN.

Immediately after the settlement member completes the deposit supplementation at the State Bank of Vietnam (Transaction Office) and receives a notification from the State Bank of Vietnam (Transaction Office), the electronic clearing host organization will adjust and update the increased electronic clearing limit for the settlement member;

+ In the case of reducing the electronic clearing limit, within 01 working day from receiving the request of the settlement member, the electronic clearing host organization will update the reduced electronic clearing limit of the settlement member; simultaneously notifying the new electronic clearing limit and the minimum deposit value ensuring the newly adjusted electronic clearing limit to the settlement member and the State Bank of Vietnam (Transaction Office).

Based on the notification from the electronic clearing host organization and the request of the settlement member, the State Bank of Vietnam (Transaction Office) will return the valuable papers, deposit money to the settlement member. The return of valuable papers deposited to set electronic clearing limits is conducted in accordance with the regulations of the State Bank of Vietnam on the custody and use of valuable papers at the State Bank of Vietnam;

- The electronic clearing host organization adjusts the reduction of the electronic clearing limit in the following cases:

+ Adjusting to reduce the electronic clearing limit in the next electronic clearing session for settlement members who have reduced deposit value during the electronic settlement process according to the net settlement processing regulations via the interbank electronic payment system;

+ Proactively adjusting to reduce the electronic clearing limit of the settlement member in case the settlement member is subject to an increased deposit ratio as per point d, Clause 2, Article 12 of Circular 40/2024/TT-NHNN;

+ Adjusting to reduce the electronic clearing limit to zero for settlement members with outstanding payment clearing loans immediately upon receiving notification from the State Bank of Vietnam (Transaction Office). The electronic clearing limit of the settlement member will be reduced until the State Bank of Vietnam (Transaction Office) completes debt recovery.

More details can be found in Circular 40/2024/TT-NHNN, which comes into force in Vietnam from July 17, 2024.

Vo Tan Dai

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