Quyết định 2453/QD-TTg

DECISION

APPROVING THE SCHEME TO STEP UP NON-CASH PAYMENT IN VIETNAM -PERIOD 2011 – 2015

THE PRIME MINISTER

Pursuant to the Law on Organization of Government dated December 25, 2001;

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010;

At the proposal of the Governor of State Bank of Vietnam at the Document No.172/TTr-NHNN dated July 30, 2011 and Document No.85/BC-NHNN dated July 30, 2011.

DECIDES:

Article 1. Approve the Scheme to step up non-cash payment in Vietnam - the period 2011 - 2015 with the following contents:

I. OBJECTIVES

1. Overall objective: To diversify payment services, develop payment infrastructure, accelerate the application of electronic payment technology, focusing on development of non-cash payments in rural areas to meet better needs of payment of the economy, reduce social costs related to cash, creating strong and significant changes in payment practices in society, contributing to improve operational efficiency of banking system and efficiency of state management.

2. Specific objectives:

a) By the end of 2015, the cash-percentage in the total means of payment at a level of lower 11%.

b) By the end of 2015, increase number of people who are accessed payment services, increase the proportion of people having bank accounts up to 35-40% of the population.

c) To implement the overall Plan's objectives for development of electronic commerce in period 2011 - 2015 has been approved by the Prime Minister at the Decision No.1073/QD-TTg dated July 12, 2010.

d) To develop card payment services, focusing on development of payment via card accepting places. By 2015, the entire market has about 250,000 card-accepting devices which are installed with the number of transactions reached about 200 million transactions per year.

đ) To apply some new forms of payment in accordance with the conditions and characteristics of rural and remote areas.

II. DUTIES AND SOLUTIONS

1. Focus on implementing three major tasks:

a) Development of electronic payment with many safe, convenient, new products and services; in which the focus is the development of payment through card-accepting places to reduce cash payment, create habit of non-cash payment in the most parts of population.

b) Selection and application of some appropriate payment models for Vietnam to build the platform, create an development for the operation of non-cash payments in rural areas, contributing to implement the Party's guidelines and State on agriculture and rural areas, farmers and construction of new countryside.

c) Strengthening the management of cash payments, reducing the use of transactions of cash payment.

2. Implementation in sync of 5 solution groups:

a) To supplement and perfect in sync the legal framework and policies:

- To review, supplement and amend legal documents guiding the implementation of the 2010 Law on State Bank of Vietnam and the 2010 Law on Credit Institutions related to the payment operations.

- To issue Decree to replace the Decree No.64/2001/ND-CP dated September 20, 2001 by the Government on payment activities through organizations providing payment services.

- To amend and supplement Decree No.161/2006/ND-CP dated December 28, 2006 of the Government regulating on payment in cash.

- To review, amend and supplement the provisions on the method of disbursement in loans of credit institutions to customers, the transactions of contribution of share capital, fund transfer, purchase, sale, transfer of shares bonds between individuals and enterprises to limit and reduce the transactions paid in cash.

- To promulgate regulations on the responsibilities of organizations providing payment services, payment intermediary services, the responsibility of the users of payment services and the regulations for security, safety, confidentiality, prevention and handling of law violations in the operation of non-cash payment.

- To promulgate the appropriate promotion mechanisms and policies on tax or similar measures such as tax incentives for turnover of goods and services paid by cards through the card accepting places to encourage the units to sell goods and services to accept card payments, encourage people to use cards for payment to buy goods and replace transactions paid in cash.

- To promulgate appropriate mechanisms and policies on payment service charges to encourage organizations and individuals to make non-cash payment; prescribe charges rate for some payment transactions in cash; with reasonable charges policy to encourage people to use debit cards through automated teller machines, card accepting equipment; to adjust decrease the charges rate of services of inter-bank payment to effect the payment service charges rate of the organizations providing payment services, creating a reasonable charge rate for service users.

- To promulgate regulations of trading real estate and other assets of great value (cars, motorcycles, boats, ships...) made payments via banks.

b) To improve the quality and development of technical infrastructure:

- To promote technology transfer and application of innovative and new technologies for operation of non-cash payment.

- To improve quality, focus on investment in development of infrastructure of card accepting network, enhance the installation of card accepting devices at the trade centers, restaurants, hotels, amusement parks, tourism.

- To connect the card payment systems across the country, strengthen the mutual card acceptance among the organizations providing card payment services.

- To layout reasonably the network, strengthen installation of automatic teller machines at the places where conditions permit, consistent with the needs of people.

- Focus on implementation and completion of scheme to construct unified card-switching center has been approved by the Prime Minister.

- To maintain smooth operations and exploit the power of interbank electronic payment systems, expand connection with the payment system of the State Treasury; to develop and upgrade the other payment system in the economy.

- To enhance solutions on security, safety and confidentiality for the payment infrastructure; to build standards for machinery and equipment for the operation of card payment, perform quality testing for automatic teller machines, card accepting devices; to research and orient application of standards on domestic payment cards, to plan development of electronic microchipped card in Vietnam in accordance with international standards to increase safety and increase facility to use card.

- To develop automated offset payment system for the retail banking transactions.

c) To diversify and improve the quality of payment services, application of new and modern payment instruments:

- To focus on the development of card payment through card accepting places by the synchronous measures for the use of debit cards to be convenient and become a habit.

- To develop and apply the card products for expense of public service of the agencies and units using state budget.

- To continue to expand the payment of wages through accounts for those who receive salaries from the state budget consistent with the possibility of payment infrastructure; to improve further the quality of services paying salaries through accounts and accompanied services; mobilize, encourage cardres, cilvil servants to make non-cash payment through the accounts (the transfer directly on automated teller machines, use of payment through card accepting places, use of other new payment services), and expand application for the objects not enjoying saliries from the state budget.

- To encourage development of multi-purpose, versatile cards (for toll collection, buying gasoline, bus tickets, taxis, paying social security ...).

- To develop forms of non-cash payment in the payment of charges, recurring charges (electricity, water, telephone ...).

- To promote the application of modern, new payment methods (payment via Internet, mobile phones ...) particularly encourage the application of the methods and modern means of payment but easy to use and in accordance with conditions in rural areas and remote areas, even for those who have no bank accounts; on the basis of applying the models successfully deployed in some countries and use the available network of credit institutions and other concerned organizations.

d) To promote information, dissemination, and guidance in the whole society:

- To organize regularly times of propaganda and dissemination of knowledge on non-cash payments with the appropriate forms on the mass media.

- To develop and implement training programs for employees of the organizations providing payment services, payment intermediary services and concerned organizations.

đ) The solution supports:

- To promote international cooperation in order to receive technical support, consulting, experience and finance necessary for the development of non-cash payments:

+ To enhance cooperation, mobilization of institutions of finance, international currency to support Vietnam in rapidly construction and growing of appropriate, modern payment systems;

+ To strengthen cooperation with the international card organizations, payment institutions, the organization providing payment solutions, banking associations in the region and around the world to learn experience and grasp timely the tendency to develop modern, new means of payment for effective applications in Vietnam.

- To strengthen coordination between the ministries, branches, localities and enterprises to deploy the solutions of non-cash payment.

- To increase the number and improve the quality of managers, especially managers participating in formulating policies and strategies in the field of payment; and strengthen the training for managers working payment in the banking sector.

- To strengthen inspection and supervision for payment activities in the economy to ensure compliance with the provisions of law for the payment, ensure the payment system to stably operate safely and effectively.

- To develop and apply the form of emulation, reward, honor, rating, evaluate retail enterprises to encourage non-cash payment; lobby organizations providing payment services, payment intermediary service, enterprises supplying goods and services with forms of incentives such as charges discount, promotion, accommulation of scores, lottery, lucky draw… for consumers.

III. ORGANIZATION OF IMPLEMENTATION

1. State Bank of Vietnam presides over and coordinates with ministries, branches, localities and units associated with implementing, monitoring and supervising and urging the implementation of the above solutions; periodically sum up partially, assess and report to Prime Minister on the status and performance; proposes measures to handle the difficulties and problems; and organize to sum up by the end of 2015.

2. The ministries, branches, and localities based on functions, tasks assigned:

a) Actively coordinate closely with the State Bank of Vietnam to direct the implementation organization.

b) Prior to December 15 annually, send performance report to the State Bank of Vietnam for synthesis to report to the Prime Minister.

c) Implement the major tasks assigned in the implementation plan issued together with this Decision.

IV. PERFORMANCE AND CONSTRUCTION FUNDING OF PROJECTS

Funding for construction and performance of the scheme is raised from the following sources: the State Budget (used to implement the mechanisms and policies of incentives, information and communication, swapping of the foreign loans, scheme construction...); capital of official development assistance (ODA), loans, foreign investment; investment of the credit institutions, enterprises and individuals; the other funding sources.

Article 2. This Decision takes effect from the signing date.

Article 3. The Governor of State Bank of Vietnam, ministers, heads of ministerial-level agencies, Governmental agencies, Chairmen of People's Committees of provinces and cities under central authority shall implement this Decision./.

PLAN

DEPLOYING A NUMBER OF MAJOR TASKS IN IMPLEMENTATION OF SCHEME TO STEP UP NON-CASH PAYMENT IN VIETNAM - PERIOD 2011 – 2015
(Issued together with Decision No.2453/QD-TTg dated December 27, 2011 of the Prime Minister)