Decree regulates non-cash transactions

The Government has recently issued a decree, which will be effective on March 1, 2014, on non-cash transactions, specifying cases which are not allowed to pay in cash.

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Organizations using State budget are not allowed to conduct transactions in cash, except for several cases in accordance with regulations of the Ministry of Finance (MoF) and the State Bank of Viet Nam (SBV).

Organizations and individuals shall not pay in cash for stock transactions at Stock Exchanges or Securities Depository Centers.

In addition, businesses shall not use cash in capital contribution and transactions, as well as in transfer of capital contributions while businesses, which are not credit institutions, are not allowed to borrow and lend in cash with each other.

Credit institutions and foreign banks’ branches have to follow the SBV’s regulations on cash disbursement and they can negotiate with their customers about cash withdrawal plans with large amounts.

Cash withdrawal at the State Treasury should be registered in accordance with the MoF’s regulations.

The SBV defines cash service charges to its customers while credit institutions and foreign banks’ branches shall publicize cash service charges in accordance with legal regulations.

(Source:VGP)