Decision No. 241/QD-TTg dated February 23, 2018 approving the Scheme for intensifying payment for public services, including tax, electricity, water, tuition fees and hospital charges, and social security programs via banks

DECISION

APPROVING THE SCHEME FOR INTENSIFYING PAYMENT FOR PUBLIC SERVICES, INCLUDING TAX, ELECTRICITY, WATER, TUITION FEES AND HOSPITAL CHARGES, AND SOCIAL SECURITY PROGRAMS VIA BANKS

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credits Institutions dated June 16, 2010;

Pursuant to the Law on amendments to the Law on Credit Institutions dated November 20, 2017;

In consideration of the request of the Governor of the State Bank of Vietnam at the Official Dispatch No. 175/TTr-NHNN dated December 21, 2017,

HEREBY DECIDES:

Article 1. The Scheme, including the following contents, for intensifying payment for public services, including tax, electricity, water, tuition fees and hospital charges, and social security programs via banks is hereby given approval.

I. OBJECTIVES

1. General objectives

Intensify payments for public services and social security programs via banks so as to make contribution to the establishment and development of e-Government, and improve the ability to access bank services and non-cash payment services.

2. Specific objectives

The following specific objectives are expected to be achieved by 2020:

a) For state budget services: 80% of payments for taxes is made via banks at central-affiliated cities and provincial cities; 100% of State Treasuries of provinces and central-affiliated cities, State Treasuries of districts, cities and towns affiliated to provinces or central-affiliated cities shall be equipped with point-of-sale (POS) terminals to serve payments to state budget;

b) For payments for electricity bills: 70% of electricity companies shall accept payments for electricity bills via banks; 70% of electricity bills is expected to be paid via banks in cities, districts and towns affiliated to central-affiliated cities or provinces;

c) For payments for water bills: 70% of water supply companies shall accept payments for water bills via banks; 50% of individuals and households in big cities shall make payments for water bills via banks;

d) For payments for tuition fees: 100% of universities and colleges accepts payments for tuition fees via banks and 80% of learners at universities and colleges shall use bank services to pay their tuition fees;

dd) For payments for hospital charges: 50% of hospitals in big cities shall accept payments for hospital charges via banks;

e) For payments for social security benefits: 20% of total social security benefit amount is expected to be paid via banks in cities, districts and towns affiliated to central-affiliated cities or provinces.

II. SOLUTIONS

1. Improvement of legal framework and policies for payments by bank transfer:

a) Review and do researches on amendments and supplements to or promulgate legislative documents so as to establish legal corridor regulating banks in provision of diversified payment products and services with the application of advanced technologies;

b) Do research and promulgate legislative documents about automated clearing system for retail transactions so as to establish a legal corridor for participation, management and operation of the system which shall facilitate organizations and individuals in making payments by bank transfer for taxes and periodical bills such as electricity bills, water bills and tuition fees;

c) Continue doing researches on amending regulations on fees payments for non-cash payment services with the aim of encouraging payment for public services and social security benefits via banks;

d) Review and amend, supplement or promulgate guidelines on financial mechanism allowing public service providers to pay payment service fees to banks and intermediary payment service providers when accepting payments via banks.

2. Development and employment of new and modern forms and methods to serve payments for public services and social security benefits via banks:

a) Equip and develop POS terminals at State Treasuries, hospital and schools to serve payments made via banks;

b) Apply non-cash payment services that are suitable and convenient for customers in collecting and paying taxes as well as paying periodical electricity bills, water bills, tuition fees, hospital charges, pensions and social insurance benefits; attach special importance to payment services and products which are modern but easy to use and suitable for users in rural areas, remote and isolated areas, as well as users who do not yet open bank accounts;

c) Do research and improve the application of advanced technologies to solutions for customer verification and identification by electronic means, hence banks are able to exactly identify their customers and develop new payment facilities as well as facilitate their customers in using payment services;

d) Develop multi-functional or multi-purpose bank cards allowing card users to make payments for taxes and tolls, receive social insurance benefits, and make payments for tuition fees or hospital charges in different forms such as online payment, payments via mobile apps, contactless payment, near field communications (NFC) and other modern payment services;

dd) Encourage the cooperation between banks and intermediary payment service providers so as to provide payment facilities suitable for payments for public services and social security benefits;

e) Complete and put the automated clearing system for retail transactions into official operation with its 24/7 availability.

3. Development of information exchange or information sharing methods between public service providers and banks:

a) Establish and standardize information about state budget collections in combination with the upgrading and synchronous development of information exchange systems regarding state budget collections between tax agencies, customs agencies and state treasuries so as to consistently apply transaction ID numbers, and thus simplify the information exchange processing between relevant agencies as well as speed up electronic tax payments;

b) Do research and formulate plan for standardizing customer information in combination with the expansion and development of connections between banks and electricity companies, water supply companies, schools, health facilities and social insurance agencies so as to handle and collate information in electronic format, and thus, facilitate the monitoring and management of collections and payments in a prompt and accurate manner.

4. Instructions for intensifying payments for public services and social security benefits via banks:

a) Ministry of Finance shall:

- Instruct its affiliates, including the General Department of Taxation, General Department of Customs and State Treasury, to improve their infrastructural facilities to serve state budget collections;

- Cooperate with the State Bank of Vietnam in continuously developing the sharing between electronic taxes infrastructure and electronic payment infrastructure so as to serve e-payments for taxes; reaching an agreement on methods for online exchange of taxation information and data between banks, tax agencies, customs agencies and state treasuries so as to assist the tax management and collection works.

b) The State Bank of Vietnam shall:

- Instruct the organization and improvement of electronic payment infrastructure system for banks so as to serve payments for public services and social security benefits;

- Instruct banks in making investments in infrastructure facilities and technologies for communicating with public service providers; diversifying payment services and methods for public services and social security benefits.

c) Ministry of Industry and Trade shall instruct Vietnam Electricity (EVN) to accept and develop payments for electricity bills via banks; do research on standardization of customer information so as to facilitate the information retrieval for making payments;

d) Ministry of Health shall instruct health facilities to actively cooperate with banks in making payments for hospital charges via banks; intensify the installation of POS terminals at health facilities so as to speed up and facilitate payments for hospital charges as well as to save times of medical services;

dd) Ministry of Education and Training shall instruct education institutions to actively cooperate with banks in accepting payments for tuition fees via bank; intensify dissemination activities and encourage learners to make payments for tuition fees by bank transfer;

e) Ministry of Labour, War Invalids and Social Affairs shall instruct Vietnam Social Security Authority to cooperate with banks in making payments for pensions and social benefits to eligible beneficiaries in conformity with reality and their demands;

g) People’s Committees of provinces shall instruct provincial departments/agencies and local public service providers to intensify payments for public services and social security benefits via banks.

5. Improvement of security and safety of payments so as to gain customers’ confidence:

a) Update and adopt advanced measures for ensuring security and safety of payment systems and facilities;

b) Intensify the supervision by regulatory authorities and the cooperate between banks and relevant entities in ensuring security and safety;

c) Frequently check, review, supplement and improve operational procedures and internal rules on security and safety of information technology systems so as to minimize risks; quickly detect violations and take corrective actions in accordance with regulations on security and safety of payments;

d) Inspect and review ATMs and POS terminals; intensify systems for ensuring safety and confidentiality of transactions made through ATMs and POS terminals as well as customer identification solutions so as to prevent frauds;

dd) Actively monitor and deal with any queries or errors; implement measures for warning and instructing customers to prevent potential risks and frauds.

6. Improvement of propagation activities:

a) The Ministry of Information and Communications shall take charge and cooperate with relevant authorities and units to actively carry out propagation activities about payments for public services and social security benefits via banks such as disseminating information about non-cash payment products or services and procedures thereof, benefits and effectiveness of using non-cash payment services for paying taxes, electricity bills, water bills, tuition fees, hospital charges and social security benefits;

b) Public service providers shall cooperate with banks and communications companies to formulate and aggregate contents concerning non-cash payment services in programs for improvement of financial knowledge for people, especially residents in rural areas, isolated and remote areas; implement marketing programs, programs for dissemination of world great initiatives and experiences, consulting programs and risk management programs.

7. Other solutions:

a) Banks should attach special importance to organization of programs for giving instructions or training customers in payment procedures so as to make them fall into the habit of making payments for public services and social security benefits via banks;

b) Encourage banks and public service providers to offer incentives to customers who make payments for public services and social security benefits via banks;

c) Adopt mechanism for commending and rewarding banks and public service providers that proactively accept and use payments for public services and social security benefits via banks.

III. FUNDING FOR IMPLEMENTATION

Funding for implementing the Scheme shall be covered by the following sources: Funding from state budget; concessional loans and grants offered by domestic and foreign organizations; funding of payment service providers and intermediary payment service providers and other legal sources of funding. Ministries, central-level authorities and local governments shall use their annual estimates of state budget expenditures to implement duties of the Scheme.

IV. IMPLEMENTION ORGANIZATION

1. The State Bank of Vietnam shall take charge and cooperate with relevant authorities and units to organize, monitor and expedite the implementation of the Scheme; summarize and suggest solutions for dealing with problems or difficulties that arise from the implementation of the Scheme to the Prime Minister; organize summary of implementation results at the end of 2020.

2. Within the ambit of assigned functions and duties, relevant agencies shall:

a) Formulate specific local and sectorial action plans for implementing assigned duties of the Scheme and submit annual reports on implementation results to the State Bank of Vietnam by December 15;

b) Effectively and timely implement contents and duties of the Scheme; combine the contents about improvement of payments for public services and social insurance benefits via banks with their schemes, projects, plans and/or programs for social - economic development;

c) Organize the implementation of assigned duties of the Plan for implementation of certain key duties of the Scheme enclosed herewith.

Article 2. This Decision comes into force from the date on which it is signed.

Article 3. Governor of the State Bank of Vietnam, Ministers, heads of ministerial-level agencies, heads of the Government’s affiliates, and Chairpersons of People’s Committees of central-affiliated cities or provinces shall be responsible for implementing this Decision./.

PLAN

FOR IMPLEMENTATION OF KEY DUTIES OF THE SCHEME FOR INTENSIFYING PAYMENT FOR PUBLIC SERVICES, INCLUDING TAX, ELECTRICITY, WATER, TUITION FEES AND HOSPITAL CHARGES, AND SOCIAL SECURITY PROGRAMS VIA BANKS
 (Enclosed with the Decision No. 241/QD-TTg dated February 23, 2018)