333 at the beach British International School, Phuket Pro Property Partners
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


BoT looks for cash deposit solutions

BANGKOK: The Bank of Thailand intends to find solutions to make cash deposit machines (CDMs) more convenient, following new regulations from the Anti-Money Laundering Office (Amlo) on their use.

economicscrime
By Bangkok Post

Friday 28 October 2022, 01:57PM


Customers use automatic teller machines and cash deposit machines at a department store. Photo: Nutthawat Wicheanbut / Bangkok Post

Customers use automatic teller machines and cash deposit machines at a department store. Photo: Nutthawat Wicheanbut / Bangkok Post

Central bank governor Sethaput Suthiwartnarueput said on Thursday (Oct 27) that the bank is collaborating with relevant regulatory agencies and the Thai Bankers’ Association to seek solutions for depositing cash at CDMs, reports Bangkok Post.

Amlo recently introduced a new rule which means depositors can only use plastic cards for cash deposits at the machines, in an attempt to prevent money laundering. The new rule sparked complaints from some consumers about the inconvenience.

The new rule was meant to come into force on Nov 15, but this has now been put on hold, according to Mr Sethaput.

Consumers can currently deposit money at CDMs by either inserting their plastic card or merely entering a bank account number.

"Solutions could include the use of an ID card number, one-time password, or mobile banking app. However, the central bank will have to discuss the matter with other related parties before making a decision," Mr Sethaput said.

He said the use of ID cards for financial transactions at CDMs could create a higher risk for consumers if, for instance, they forget to withdraw the cards from the machines.

At the same time, banks need to adjust the technology of CDMs to allow for the use of ID cards for money deposits, which would increase the banking sector’s operational costs, he said.

Subscribe to The Phuket News

In a related matter, Mr Sethaput on Thursday said at a central bank seminar about digital finance that it wanted responsible innovation in the country’s digital technology development.

Besides building up productivity, he said responsible innovation development of the financial sector would help upgrade innovative technologies with more sustainability and resiliency, while improving financial inclusivity. Such innovation would open up more opportunities for underbanked people to better access financial services, while innovation development without responsibility would create higher risks for consumers as cyberrisks rise, said Mr Sethaput.

The central bank is attempting to strike a balance between innovation development and risk management of the financial sector. As a result, the bank believes regulations should not be an obstacle for the innovation development of the private sector, but rather should be a guard-rail supporting innovation development of the banking industry.

In addition, Mr Sethaput said the public sector or regulators should cooperate with the private sector to develop innovations, to benefit everyone and the overall economy. With the new direction, the regulators should set up clear requirements in order to solve pain points in each area and allow the private sector to develop innovations and technologies in response to their clear requirements.

The Bank of Thailand announced on Wednesday (Oct 26) that it had collaborated with the Hong Kong Monetary Authority, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People’s Bank of China, and the BIS Innovation Hub Hong Kong Center to successfully complete a pilot project using wholesale central bank digital currencies (wholesale CBDC) for real-value cross-border payment transactions, as part of the Multiple Central Bank Digital Currency Bridge Project.

The project is in the phase following Project Inthanon-LionRock Phase 2, which was conducted in 2021. Mr Sethaput said wholesale CBDC would be another game changer in the area of cross-border payments, in addition to PromptPay, Thailand’s existing digital payment infrastructure. The central bank will continue to create more use cases of wholesale CBDC for the next phase, he added.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

* (Not Hotmail/Outlook)
CAPTCHA

Fascinated | 28 October 2022 - 19:14:52

Anyone else noticed when a new rule, whatever it be and whomever initiates it tends to be delayed or deferred because it hasn't actually been thought though properly? Either that , or it quietly fades away as a 'mis-understanding'!

 

Have a news tip-off? Click here

 

Phuket community
Phuket Opinion: Putting Phuket on show

The proposal says: The city is also renowned for its word-class wellness and medical tourism, and is...(Read More)


Koh Siray targetted over deluge of trash

Timothy, please do not exaggerate. I am only Medium-so. ...(Read More)


‘Lessons learned’ from airport chaos

Timothy I’m not aware that Kurt missed any flight. And I think he might take offense to you referr...(Read More)


Over 3000 flights to land in Phuket in December as tourism rebounds

Yesterday is always forgotten. Period. And what they learn today they forget tomorrow as well. As si...(Read More)


Phuket Opinion: Putting Phuket on show

Not even able to keep the most crucial Phuket key roads in sustainable condition, as we all over Phu...(Read More)


Phuket Opinion: Putting Phuket on show

"Presentation solely focussed on 'glorified' benefits of sustainability, harmony, prosp...(Read More)


‘Lessons learned’ from airport chaos

ematt, I'm sure you would have been unhappy about this too if you missed your international conn...(Read More)


Over 3000 flights to land in Phuket in December as tourism rebounds

Anyway, the number of Phuket flight arrivals/departures are spiking. And just during that period of ...(Read More)


Koh Siray targetted over deluge of trash

Oh Ematt....that is a very funny comment, coming from you. On many occasions you have called people ...(Read More)


Tourists urged to contact police in case of Phuket taxi deviations

Fascinated, yes, you have a point. However, tourists have not always any idea of Phuket topograhy, b...(Read More)