In order to better manage the opening, temporary blockade and closure of individual payment accounts, the Government issued on November 22 Decree No. 101/2012/ND-CP, on non-cash payment, which will take effect on March 26, 2013.

The new Decree is applicable to non-cash payment service providers, payment intermediary service providers and users.

Under the Decree, holders who open individual payment accounts must have civil legal and act capacity, and enough own property, for those aged between fifteen and under eighteen. Payment account holders being minors must have lawful guardians.

Purposes of using common payment accounts, rights and obligations of these accounts’ holders and regulations on use of these accounts must be clearly provided in writing.

Account holders may use their accounts for cash deposit and withdrawal and to request payment service providers to carry out lawful payment transactions and provide information on transactions and balance on their accounts.

Payment service providers may reject improper payment orders of account holders, or when the account balance is insufficient, unless otherwise agreed.

The Decree specifies four cases of blockade of an account:

(i)                   When there is a written decision or request of a competent agency under law;

(ii)                 When the payment service provider detects an error in money transfer;

(iii)                When the payment service provider detects a payment-related fraud or violation of law; or

(iv)               When there is a dispute among the joint holders of the common payment account.-