Proposed Transaction Limits on Payment Agents Criticized by Việt Nam Chamber of Commerce and Industry

The proposed transaction limits on each business partner of financial institutions in the draft circular about payment agents have sparked controversy, with the Việt Nam Chamber of Commerce and Industry (VCCI) calling them unreasonable.

According to the draft proposal, the transaction limit is set at VNĐ20 million (US$785) per customer per day, with the limit for an agent at VNĐ200 million per day and VNĐ5 billion per month. VCCI argues that these limits are outdated and no longer suitable for a modern economy, potentially disrupting service provision.

VCCI points out that these limits have been in place since 2012 when the State Bank of Việt Nam approved the pilot implementation of payment agents. After 12 years, VCCI believes it is time to adjust the limits to reflect market developments, increasing payment demands, and inflation rates.

The chamber suggests that restrictions should be tailored to the transaction demands in specific local areas where agents operate, taking into account the scale of operations and risk levels. VCCI urges the State Bank of Việt Nam to amend the circular to apply limits only to new agents, allowing banks and their partners to renegotiate appropriate transaction limits.

One of the main concerns raised by VCCI is the low fees currently imposed by banks on payment transactions, ranging from 0.025% to 0.04%. Under the draft circular, payment agents are allowed to charge fees not exceeding those of banks. This means that with a daily transaction limit of VNĐ200 million, agents can only earn VNĐ50,000 – VNĐ80,000 per day, which VCCI deems too low to attract business partners.

VCCI argues that policies should be put in place to encourage financial institutions’ business partners to open payment agents in rural, mountainous, remote, border, and island areas of Việt Nam to promote financial inclusion.

The draft circular also faces criticism for not considering the evolving market dynamics and the need for flexibility in transaction limits. VCCI’s recommendations aim to create a more conducive environment for payment agents to thrive and meet the growing demands of the modern economy.

Overall, the debate over the proposed transaction limits highlights the importance of aligning regulations with market realities and fostering innovation in the financial sector to support economic growth and financial inclusion in Việt Nam.