Credit cards may not withdraw more than 5 million VND per day.

Low limit for customers to use only in necessary cases, in accordance with international practices and also to limit risks.

The State Bank has just announced a draft Circular amending and supplementing Circular No. 19/2016 regulating bank card activities.

Accordingly, for cash withdrawals by card abroad, to limit the use of cash (foreign currency) withdrawn from the card and then spent for purposes other than those permitted under foreign exchange law, the draft stipulates that cash withdrawals by card abroad will be subject to a maximum daily limit.

The draft clearly states that for the limit of withdrawing foreign currency cash abroad, a card can withdraw a maximum amount of foreign currency cash equivalent to 30 million VND in one day.

In the near future, credit cards cannot withdraw more than 5 million per day.

For cash withdrawal transactions in VND from cards at card acceptance units, each card can withdraw a maximum of 5 million VND in one day. This is explained by the drafting committee that to limit risks, there must be a limit on cash withdrawals by card via POS at card acceptance units per day (low limit for use only in necessary cases, in accordance with the practices of other countries).

At the same time, the draft also stipulates that in the case of issuing a credit card with collateral, the credit limit granted to the cardholder shall not exceed 80% of the value of the collateral and shall be a maximum of 1 billion VND. In the case of issuing a credit card without collateral: The maximum credit limit granted to the cardholder shall be 500 million VND.

According to the drafting committee, this issue has no precedent in practice, so when it is first allowed to be implemented after amending the Law on Credit Institutions, it should be considered carefully. The draft stipulates a maximum credit limit for each case of credit card issuance (with or without collateral).

In addition, this draft amendment and supplement also expands the subjects using credit cards. Accordingly, the State Bank will expand the subjects of primary cardholders aged 15 to 18 for credit cards and debit cards with overdraft to synchronize with the regulations on subjects eligible for loans of the Law on Credit Institutions.

Amending the regulation on issuing non-overdraft debit cards to supplementary cardholders aged 6 and over because it is not feasible in practice that banks are implementing.

At the same time, based on some real-life cases, the draft Circular adds regulations on the issuance of cards to foreigners to limit the situation of foreigners entering the country for a short time, opening a card, then leaving the country and using the card to commit or assist in criminal activities.

Therefore, the draft stipulates that in case the card holder is a foreigner, he/she must be permitted to reside in Vietnam for a period of 12 months or more. The validity period of the card of an individual in this case shall not exceed the remaining period of permitted residence in Vietnam.

According to VNN