Local commercial banks have again petitioned the State Bank of Vietnam to allow them to charge all customers for using automated teller machines to withdraw money.

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The proposal has been turned down three times before.Â

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Currently customers are only charged when they withdraw money from other banks’ ATMs, at VND3,300 (US$0.16) per withdrawal.

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In the latest proposal, members of the Bank Card Association also want to increase the current fees to VND5,500.

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Nguyen Thu Ha, chairwoman of the association, said the increase will help generate income to maintain and improve security at ATMs around the country.

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Ha said that banks have had to invest huge amounts of money to bolster security following a recent spurt in ATM thefts.

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Director of a bank’s card center, who wished to remain anonymous, said cardholders usually withdraw money soon after it is deposited or transfer it to deposit accounts to benefit from interest rates.

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He said big banks have to keep at least VND400-500 million ($19,417-24,271) at every ATM, or around VND500-600 billion ($24.27-29.13 million) for thousands of ATMs. The money does not earn them any profit.

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The association members said the ATM usage charges will also encourage small banks to invest in their own ATMs.

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In related news, Ha on Monday said the State Bank of Vietnam has suspended licenses to open new ATMs and bank branches.

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Details of the suspension will be announced later, according to Ha.

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As of last year Vietnam had 11,700 ATMs, a 20 percent increase from the year before. Six major banks – Agribank, Vietinbank, Vietcombank, Dong A, BIDV, and Techcombank – account for 70 percent of all ATMs in the country.

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