Cash withdrawal limit in foreign countries set at 30 million VND

14:19 | 09/01/2019 Finance - Banking

Commercial banks have to adjust the limit of cash withdrawals in foreign currency abroad to the maximum equivalent of 30 million VND (some 1,300 USD) per day for international credit and debit cards from early this year to meet a central bank regulation.

The limit is relatively low as prices in some foreign countries are 20-30 times higher than Vietnam - Photo: thebank.vn

Vietcombank last week announced it has adjusted the limit for its cardholders, starting from January 1, 2019.

The adjustment aims to meet the State Bank of Vietnam (SBV)’s Circular No 26/2017/TT-NHNN on bank card operation, effective from January 1 this year, a Vietcombank representative said.

According to the SBV, it stipulates cash withdrawal transactions will be subject to a daily cap to limit the use of cash as foreign currency spent for improper purposes that are not permitted by law.

Vietcombank’s representative said this regulation does not affect customers’ demands as a survey showed few customers used credit cards to withdraw money abroad due to high fees and charges.

However, banking expert Nguyen Tri Hieu said the limit is relatively low as prices in some foreign countries are 20-30 times higher than Vietnam.

The limit is also low if compared with the rate stipulated in the country’s immigration policy. Under the current regulation, a person can bring into Vietnam 5,000 USD or other currencies equal to 15 million VND without declaring it.

Circular No 26 also stipulates for cash withdrawals at domestic card accepting units, each cardholder can withdraw a maximum of 5 million VND per day.

According to the circular, in case of issuance of credit cards with security assets, the credit limit granted to the cardholder shall not exceed 80 percent of the value of the security assets, which is valued at a maximum of 1 billion VND.

In case of credit card issuance without security assets, the credit limit granted to a cardholder is 500 million VND.

Theo VNS/VNA