Vietnamese Banks Halt Instant Transfers Over VND 500M from April 2026

Overview

Several Vietnamese banks, including MSB, Eximbank, VPBank, and TPBank, are discontinuing instant 24/7 transfer services for transactions over VND 500 million starting in April and May 2026. The change, mandated by the State Bank of Vietnam (SBV) under Circular 41/2025, shifts large-value transfers to standard processing, introducing delays of at least four hours or until the next business day.

Key Facts

• MSB will halt instant transfers over VND 500 million from May 1, 2026; transactions will be processed as standard transfers with a minimum 4-hour handling time.
• Eximbank began applying the restriction from April 21, 2026, for interbank transfers above VND 500 million.
• VPBank and TPBank issued similar notices in early April 2026, citing SBV regulatory compliance.
• Previously, banks automatically split large transfers into smaller amounts (e.g., VND 450 million) to process via Napas’s instant clearing system.
• Circular 41/2025 amends Circular 40/2024, capping electronic clearing transactions at VND 500 million; exceeding amounts must use the standard processing channel.
• Standard processing takes at least 4 working hours; transfers initiated after 15:55 are deferred to the next business day.
• Banks recommend customers split large transfers into multiple transactions under VND 500 million to retain instant processing.

What Happened

In response to SBV Circular 41/2025, which amends regulations on payment intermediary services, several Vietnamese commercial banks are discontinuing the automatic splitting of large-value transfers for instant processing. Previously, banks commonly used a feature that divided interbank transfers over VND 500 million into smaller amounts (typically VND 450 million and the remainder) to route through Napas’s 24/7 clearing system, often free of charge. The new regulation prohibits such splitting, requiring all transactions exceeding VND 500 million to be processed via the standard interbank clearing channel, which operates during business hours only.

MSB announced that from May 1, 2026, any transfer above VND 500 million will be automatically converted to a standard transfer, with a minimum processing time of four working hours. Eximbank implemented the change from April 21, 2026, and confirmed that its online applications will no longer automatically split transactions. VPBank and TPBank issued similar notices in early April 2026, all citing compliance with SBV regulations.

Market Context

As of April 15, 2026, MSB closed at VND 13,000 (-0.39%), VPB at VND 27,000 (flat), and TPB at VND 16,000 (flat), with moderate trading volumes. The banking sector on HOSE has been under pressure from regulatory tightening and margin compression. This operational change may affect transaction volumes and fee income for banks with large retail and corporate client bases, though the immediate share price impact appears muted. The regulation aligns with SBV’s broader efforts to enhance payment system security and reduce systemic risk.

Strategic Significance

The discontinuation of instant large-value transfers represents a shift in Vietnam’s payment infrastructure, prioritizing regulatory compliance and risk control over customer convenience. For banks like MSB, VPB, and TPB, which have invested heavily in digital banking and instant payment capabilities, the change may temporarily reduce the attractiveness of their digital platforms for high-value transactions. However, it could also encourage customers to use alternative channels such as multiple smaller transfers or real-time gross settlement (RTGS) for urgent large payments. Long-term, the regulation may standardize payment practices and reduce operational risks associated with automated splitting.

What to Watch

• Q2 2026 earnings reports from MSB, VPB, and TPB for any impact on fee income or transaction volumes.
• Customer adoption of workaround strategies (e.g., splitting transfers) and potential feedback to banks.
• SBV guidance or potential adjustments to Circular 41/2025 if industry pushback emerges.
• Competitor responses: whether other banks (e.g., Vietcombank, BIDV) adopt similar restrictions.
• Development of alternative instant payment solutions for high-value transactions, such as expanded RTGS hours.