Promote non-cash payment activities in the State Treasury system

The State Treasury strives to gradually reduce the rate of collection and payments by cash through the State Treasury by the end of 2025. Photo: Thùy Linh

Customers are center of payment activities

According to the State Treasury, non-cash payment (NCP) activities in the State Treasury system have made significant progress in terms of the legal framework, infrastructure and technology serving for NCP as well as other services and means of non-cash payment in collecting and expenditure through the State Treasury in general and state budget revenues and expenditures in particular.

However, in the context of international integration, with the strong development of information technology and telecommunications, many new services and payment solutions were introduced, posing challenges and requirements in completing the legal corridor; upgrading payment systems; applying new means and services of non-cash payment in collection and expenditure through the State Treasury in order to develop the Digital Treasury following the national digital transformation roadmap.

The State Treasury has researched, summarized, evaluated and built a project of non-cash payment development in the State Treasury system to 2025 with clear orientations.

Accordingly, it will promote the activities of NCP in the economy in general and in the State Treasury system in particular, especially in state budget revenue collection and expenditures, creating more favorable conditions for people and units involved in transactions with the State Treasury to access NCP services; set customers as the center of payment activities.

Furthermore, balancing innovation and creativity with financial stability, creating fair competition, protecting the interests of units, organizations and individuals having transactions with the State Treasury, protecting national interests, ensuring security and safety, risk management, and data security in the field of payments.

Simultaneously, the State Treasury applies scientific and technological achievements to promote the operation of NCP in the State Treasury system, in line with the development trend, able to connect with systems and services in other sectors and fields of the economy; strengthen cooperation with units inside and outside the Finance industry; applying domestic and international achievements and experiences of non-cash payments.

The objective of the project is to create a positive change in NCP in the State Treasury system, forming the habits of budget-using units, state budget payers, other organizations and individuals having transactions with the State Treasury located in urban areas in payment in general as well as state revenue collection and expenditures in particular, gradually developed in rural, remote, border and island areas.

At the same time, the State Treasury system will gradually reduce the rate of collection and payments by cash through the State Treasury and proceed to form a cashless treasury on the basis of modernizing payment methods, ensuring compliance with the general trend of the country, the region and the world on the development of non-cash transactions.

The State Treasury also sets the target of upgrading infrastructure and e-payment systems of the State Treasury; develop payment services through the State Treasury system in a diversified and modern manner in order to meet the demand for diverse payment of units, organizations and individuals on the basis of applying achievements of the Fourth Industrial Revolution. Also, connecting and sharing data with national database systems, ministries, sectors, localities and relevant units.

In particular, ensuring security, safety and confidentiality in the operation of the NCP, transparency of payment transactions in the State Treasury system, contributing to the prevention and combat of corruption, negativity, economic crime, prevention of money laundering and terrorist financing.

The specific goal is by the end of 2025 to strive to reach 100% of transactions of expenditure are non-cash payments at the State Treasury and reduce collection by cash at the State Treasury.

Development of modern and secure payment infrastructure

To achieve the above objectives, the State Treasury has proposed solutions to develop the NCP in the State Treasury system by 2025 in all fields, from the legal framework, technology, business processes, safety, security, and training to improve professional qualifications for officials and promoting information and communication work.

First of all, the State Treasury will complete the legal framework, mechanisms and policies.

For example, upgrading and developing a modern, safe, efficient and interoperable payment infrastructure so that commercial banks can access the data exchange portal of the State Treasury to collect information on payment tables for beneficiaries of state budget-using units; continue to improve the connection between the State Treasury's infrastructure and tax and customs authorities, the National Public Service Portal, the National Interbank Electronic Payment System (IPBS) and the payment systems of commercial banks.

At the same time, the State Treasury promotes collecting and spending through the State Treasury in the form of NCP.

Accordingly, the State Treasury continues to expand the network of accounts to serve the State Treasury's collection of state funds at commercial banking systems in order to ensure that the conditions for opening an account for the collection of the State Treasury's funds are met; coordinate with the General Department of Taxation, the General Department of Vietnam Customs and commercial banks to collect the state revenue by following the revenue identifier in order to minimize the transmission of information between agencies, facilitating the promotion of modern forms of collection such as QR-Code, mobile-money, e-wallets, mobile-banking.

In addition, every year, the State Treasury will coordinate with the State Bank and commercial banks to survey the provision of personal payment services via accounts, especially the locations of ATMs of commercial banks system in each locality to report to the Ministry of Finance.

Along with that, launching the State Treasury's control and proactive payment for purchases of goods and services to be used first and paid later (electricity, water, telecommunications, etc.) following the authorization of the units using the state budget.

At the same time, the State Treasury strengthens inspection and examination to ensure security, safety, and confidentiality in the operation of the NCP and minimizes risks in payment activities through the State Treasury system; strengthens the training and retraining of civil servants and arranges job positions in the State Treasury system in order to meet the requirements of promoting NCP; regularly disseminate, mobilize and guide customers to use non-cash payment methods when making transactions with the State Treasury.