Deputy Governor: Prioritize using new money for ATMs during Tet

The State Bank is ready to provide enough cash for commercial banks, even prioritizing new bills of commonly used denominations for the ATM system to avoid zip-jamming, sticking...

The demand for cash during the New Year holiday is often very high. In order to meet this demand, the State Bank of Vietnam (SBV) has developed a cash plan, transferring cash to meet people's needs.

According to the direction of the State Bank of Vietnam for commercial banks, special attention should be paid to areas with large cash receipts and payments such as Hanoi, Ho Chi Minh City, Dong Nai, and Dinh Duong.

On January 20, the State Bank of Vietnam held a press conference on meeting cash needs and ensuring ATM operations during the 2015 Lunar New Year. On the sidelines of the meeting, VOV.VN interviewed Deputy Governor Dao Minh Tu to clarify questions from people receiving salaries and bonuses through ATM accounts.

Deputy Governor Dao Minh Tu (photo VH)

PV:Dear Deputy Governor, every year when Tet comes, the story about the ATM system becomes "hot", because many people worry about not being able to withdraw cash to spend and cover expenses?

Deputy Governor Dao Minh Tu:Regarding cash and ATMs, the State Bank of Vietnam did not only give instructions on Tet, but over the past many years we have been very determined and active in terms of general policies and procedures...

The State Bank is always ready to provide enough cash for commercial banks, even prioritizing new bills of commonly used denominations for the ATM system to avoid zip-jamming, sticking...

During Tet, the demand for cash increases dramatically, at which time businesses and enterprises pay salaries to workers. The State Bank of Vietnam has directed the highest spirit, avoiding the phenomenon of ATMs having no money, not being able to meet the demand... I affirm that the amount of cash for ATMs is fully met, especially in large cities and industrial zones...

Recently, commercial banks have worked with business leaders to discuss the most convenient way to pay salary earners during peak periods, close to Tet.

Now I am considering the ATM overload story to have another solution, not just a temporary, immediate solution and not every province has to do this. ATM congestion is only concentrated in a few places, even in a locality, not everywhere that situation happens.

To further overcome this problem, the State Bank of Vietnam has directed that commercial banks in large industrial zones can use many flexible payment methods, such as transferring money through finance, paying directly, or workers can go to the nearest branch to receive money...

PV:Sir, in recent years, there has been a situation where workers can go to the bank to withdraw money, but it coincides with the time the workers go to work. So is there any way to overcome this situation?

Deputy Governor Dao Minh Tu:In fact, workers work in shifts, so they can take time to withdraw money. In addition, commercial banks also operate outside of office hours, so there are still certain times for shift workers to withdraw money. In cases where there are many workers, if the bank discovers any problems, there will definitely be specific solutions to the situation.

With the strong and close direction of the State Bank, I am sure that commercial banks will be responsible, especially for hot spots. If there are “hot spots”, commercial banks themselves will be very concerned and will have their bonuses cut… not to mention that banks must also have competitive policies to attract customers.

PV:Currently, many customers have reported that commercial banks only allow a very low limit for one-time ATM withdrawal, only 2 million VND/time, and if you want to withdraw more money, you will have to pay a lot of fees. Do you know about this situation?

Deputy Governor Dao Minh Tu:As far as I know, the current information technology system, network security… have many problems that need to be taken into account, not that commercial banks set withdrawal limits to make a profit. I am sure that it is not for profit.

PV:Sir, back to the story of cash, many people want to have new money for holidays and Tet to go to festivals, give lucky money… So this year, how will the State Bank solve this need of the people?

Deputy Governor Dao Minh Tu:New notes in denominations of 10,000 – 20,000 – 50,000 VND continue to be printed. Printing new notes to give as New Year’s gifts is not a mandatory policy but only a combination. The State Bank still supplies these notes to units, and units exchange whatever amount they have for their customers. There is no policy now requiring people to exchange notes to give as New Year’s gifts or to attend ceremonies.

PV:For the past 2 years, the State Bank has not printed small denomination notes, except for 5,000 VND notes in 2015. Can you tell us how effective this policy has been?

Deputy Governor Dao Minh Tu:In 2013, when 500 VND bills were not put into circulation, 94 billion VND was saved (through no printing, transportation, handling, storage costs...).

In 2014, not printing new 1,000 - 2,000 VND bills saved 314 billion VND, and if combined with not printing and circulating 500 VND bills, in 2014, 409 billion VND was saved.

In 2015, if new 5,000 VND bills are not printed into circulation, about 171 billion VND will be saved.

Adding up all three denominations and after 3 years of implementation, the State Bank has saved 1,084 billion VND.

PV:Thank you, Deputy Governor!

According to VOV