Commercial banks have to adjust the limit of cash withdrawals in foreign currency abroad to the maximum equivalent of VND30 million (US$1,280) per day for international credit and debit cards from early this year to meet a central bank regulation.

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

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

According to 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 Viet Nam.

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 Viet Nam US$5,000 or other currencies equal to VND15 million without declaring it.

Circular No 26 also stipulates for cash withdrawals at domestic card accepting units, each cardholder can withdraw a maximum of VND5 million 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 per cent of the value of the security assets, which is valued at a maximum of VND1 billion.

In case of credit card issuance without security assets, the credit limit granted to a cardholder is VND500 million. — VNS