New points in Decree 52/2024/ND-CP on cashless payments

Decree No. 52/2024/ND-CP was developed under the leadership of the State Bank of Vietnam (SBV), in coordination with relevant ministries and agencies, to ensure compliance with legal regulations.

This decree serves as a key legal framework for cashless payments, affecting various sectors, entities, organizations, and individuals. It aims to establish a solid legal foundation, promote cashless transactions, facilitate digital transformation in the banking sector, and develop new, convenient, and safe payment services at reasonable costs.

The decree is structured into 7 chapters and 38 articles, following principles aligned with the Constitution and laws of Vietnam, international treaties and agreements to which Vietnam is a party, and the goal of enhancing technological applications for modern and secure payment services. It inherits and improves provisions from Decree No. 101/2012/ND-CP while addressing its limitations. The following are some major policy changes incorporated in Decree No. 52/2024/ND-CP:

1. New regulations on electronic money (E-money)

Decree No. 52/2024/ND-CP introduces specific regulations on electronic money, including:

• Definition and clarification of e-money (Article 3).

• Forms of e-money used in payments, such as e-wallets and prepaid cards (Article 6).

• Entities authorized to issue e-money, including banks, foreign bank branches (for e-wallet and prepaid card services), and licensed intermediary payment service providers (who can offer e-wallet services linked to customers' bank accounts).

These regulations aim to prevent unauthorized payment instruments from being issued by unlicensed entities, supporting authorities in combatting illegal activities related to e-money. This aligns with the Government-approved legal framework under Decision No. 1255/QD-TTg (August 21, 2017) for managing virtual assets, e-money, and cryptocurrencies.

2. New provisions on international payments

The decree expands on international payment regulations by:

• Defining international payments and international payment systems (Article 3).

• Clarifying SBV's role in managing international payments (Article 4).

• Regulating cross-border payment services, including financial switching services for international transactions (Article 5).

• Setting requirements for banks and foreign bank branches to join international payment systems (Articles 5, 21).

• Ensuring transparency and regulatory compliance in cross-border transactions by requiring related parties to provide timely and complete information to regulatory authorities (Article 5).

These provisions enhance state management in international payments, promote cross-border payment partnerships, and support e-commerce transactions amid technological advancements and innovation.

3. Amendments and supplements to regulations on Intermediary Payment Services (IPS)

To better align with practical needs and improve state management efficiency, the decree introduces several modifications to intermediary payment services (IPS), including:

• Reducing the number of IPS requiring licensing, eliminating the licensing requirement for services supporting electronic money transfers that fall outside the IPS scope.

• Streamlining administrative procedures by reviewing business conditions and requirements.

• Providing clearer details on licensing, renewal, and revocation procedures for IPS providers.

• Establishing principles for SBV to supervise licensed IPS providers, ensuring effective management and compliance.

4. Other notable provisions

Decree No. 52/2024/ND-CP also includes:

• Regulations on the organization, management, operation, and supervision of national payment systems (Articles 4, 33-35).

• Clearer rules on monitoring IPS providers and payment service operators.

• Transitional provisions for existing international payment system participants, including banks, foreign bank branches, and financial switching service providers.

• Guidance for public postal service providers offering payment services that do not require customer bank accounts (Article 36).

Given the rapid technological advancements, the Fourth Industrial Revolution, international integration trends, and Vietnam’s digital transformation goals, the issuance of Decree No. 52/2024/ND-CP ensures transparency, legal clarity, and practical effectiveness in cashless payment regulations. It addresses existing regulatory challenges, supports digital transformation, and promotes cashless transactions in the economy.

Additionally, the decree aligns with the Law on Credit Institutions 2024, which was recently approved by the National Assembly and will also take effect on July 1, 2024.

Source: Thitruongtaichinhtiente.vn