SBV drafts decree on intermediary payment service

Laws - A draft decree on non-cash payment mapped out by the central bank to replace the prevailing Decree 64/2001 on payment service providers is set to go before the Government early this year.

This is the first time related sides involved in intermediary payment activities has been officially mentioned in a legal document.

Duong Hong Phuong, deputy head of Payment Department at the central bank, said that intermediary payment is a new service which has vigorously developed in line with the strong development of information technology and telecom.

Without a complete legal frame for this activity, the central bank has had no choice but to have granted licenses on a trial basis to nine organizations specializing in e-purse services at home.

“Intermediary payment services associated with high technology need to be strictly supervised to minimize risks. This is the reason why new regulations will set up a legal corridor to support non-banking institutions in payment activities,” Phuong noted.

The central bank has initially classified intermediary payment services into three categories including electronic payment infrastructure provision, payment service support and other services.

Another important point of the draft Decree is the presence of regulations on supervising payment systems, such as principles, criteria and the scope of supervision of the national payment system, or the inter-bank electronic payment system. The 2010 Law on the State Bank of Vietnam provides for the central bank to manage, operate and supervise the national payment system.

Still, the national payment system has only accepted Vietnam dong, forcing the settlement of payments in foreign currencies to depend on commercial banks accordingly.