The regulations on non-cash payments

On 15/5/2024, the Government has just issued the Decree No. 52/2024/ND-CP regulating on non-cash payments.

This Decree regulates non-cash payment activities, including: Opening and using payment accounts; non-cash payment service; intermediary payment services; organize, manage and monitor payment systems.

The State Bank is responsible for state management of non-cash payment activities:

- To issue or submit to competent authorities for promulgation of legal documents on non-cash payment activities; the regulations on management, connection, and data sharing for non-cash payment activities.

- To organize, manage, operate and supervise the national payment system; participate in organizing and supervising other important payment systems; supervise payment service provision activities and intermediary payment services.

- To approve the participation in the international payment system of commercial banks and foreign bank branches.

- To issue, amend, supplement and revoke licenses to provide intermediary payment services of intermediary payment providers.

- To check, inspect and handle according to authority violations of the law on non-cash payment activities by organizations and individuals.

- To manage international cooperation activities in the field of payment; chair and coordinate with competent authorities in managing international payment activities.

According to the Decree No. 52/2024/ND-CP, payment accounts are partially or completely blocked in the following cases:

1- According to prior agreement between the payment account holder and the payment provider or at the request of the account holder;

2- When there is a decision or written request from a competent authority according to the provisions of law;

3- When the payment provider detects a mistake or error when crediting the customer's payment account or complying with the payment transfer provider's request for refund money due to mistakes or errors compared to the payment order of the remitting party after crediting the customer's payment account. The amount blocked on the payment account must not exceed the amount of mistake or error;

4- When there is a request to block one of the joint payment account holders, unless there is a prior written agreement between the payment provider and the joint payment account holders.

The Decree No. 52/2024/ND-CP stipulates that the termination of payment account blockade is carried out: According to the written agreement between the payment account holder and the payment provider. When there is a decision to end the blockade by the competent authority according to the provisions of law. Errors and mistakes in money transfer payments specified in point 3 above have been resolved. When there is a request to end the blockade of all joint payment account holders or according to a prior written agreement between the payment provider and the joint payment account holders.

The Decree clearly states that payment providers, payment account owners and authorized authorities if they illicit block payment accounts or request them to block payment accounts, causing damage to payment account owners shall be responsible for compensation according to the provisions of law.

In addition, Decree No. 52/2024/ND-CP also clearly stipulates that payment account closure is carried out when: The payment account owner requests and has fully fulfilled the obligations related to the payment account. The owner of the payment account is an individual who died or was declared dead. The organization with the payment account terminates its operations in accordance with the provisions of law. The payment account owner violates prohibited acts on payment accounts specified in Clause 5 and Clause 8, Article 8 of Decree 52/2024/ND-CP. The cases under prior written agreement between the payment account holder and the payment provider. Other cases as prescribed by law.

This Decree takes effect from July 1, 2024.

This Decree replaces Decree No. 101/2012/ND-CP dated November 22, 2012 of the Government on non-cash payments; Decree No. 80/2016/ND-CP dated July 1, 2016 of the Government amending and supplementing a number of articles of Decree No. 101/2012/ND-CP dated November 22, 2012 of the Government on non-cash payment and abolishing Article 3 of Decree No. 16/2019/ND-CP dated February 1, 2019 of the Government amending and supplementing a number of articles of Decrees stipulating business conditions within the scope of state management of the State Bank.