4 major banks were again 'whistled' for increasing ATM withdrawal fees
From July 15, the 4 "big guys" leading the card market share cannot increase domestic ATM fees after receiving a "postponement" directive from the State Bank.
A representative of the State Bank said on the morning of July 10 that the agency has just requested commercial banks not to increase domestic ATM withdrawal fees.
According to the manager, the consistent principle of the State Bank on fee increases is the autonomy of banks in accordance with legal regulations. However, this increase must ensure information transparency as well as the harmony of interests between parties and the consensus of users.
"Banks need time to clearly explain to users what fees are appropriate.Is such an increase too much and why is it increasing... Only when there is consensus from users should the increase be implemented," a representative of the State Bank shared.
A representative of a state-owned bank also confirmed that it had received instructions and would immediately stop the fee increase plan as requested by the management agency.
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Major banks have temporarily not increased domestic ATM withdrawal fees. |
The State Bank's move was made after a series of card giants in the market such as Agribank, VietinBank, Vietcombank, and BIDV announced that they would increase domestic ATM fees from VND1,100 to VND1,650.(VAT included)from 15/7
This is not the first time the State Bank has issued a directive to "blow the whistle" on commercial banks regarding ATM fees. Exactly two months ago, the four "big guys" leading the market share in payment cards also joined hands to demand fee increases. Seeing the need to balance and harmonize the interests of all parties, the operator asked the banks to stop this plan.
The reason given by banks for increasing ATM fees is to compensate for the large losses incurred in the ATM sector. According to some banks, the cost of an ATM transaction that they have to pay (including maintenance and repair costs) ranges from VND7,000 to VND10,000.
The domestic ATM fee is the fee that the bank charges cardholders for withdrawing money at ATMs on its system. Meanwhile, the fee for withdrawing money from an out-of-network ATM is still VND3,300 per transaction (including VAT).
Along with this move to increase fees, there are currently many joint stock banks that offer free ATM withdrawals both within and outside the network to encourage customers such as Techcombank, VPBank, VIB, TPBank... For each transaction of cash withdrawal at an outside network ATM of the customer, these banks will have to bear the entire cost.
