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Bank of Thailand’s rules on the use of internet networks by commercial banks in ThailandKitti Pintavirooj, Bangkok

The Bank of Thailand revised the notification on the use of the internet for commercial banking business, by issuing a new notification dated November 9 2000, which will repeal the previous notification dated December 30 1999. The aim is to expand the scope of use of the internet for undertaking commercial banking business, in order to support both commercial bank and electronic commerce transactions which will play an important role in the economic development of the country in the future.

The substance of the notification is as follows:

  • Expand the type and scope of transaction which can be done on the internet by incorporating all transactions allowed by the Commercial Banking Act B.E. 2505 and its amendment, provided that permission from the Bank of Thailand is obtained first. When commercial banks are given permission to use the internet for commercial banking business, they can also use it for other permissible activities without having to reapply. However, they must review the plan to support business operations accordingly.
  • The commercial bank can display the logo or motto of other businesses on its website to inform its customers of other businesses they can deal with through the bank, or as a means for the customers to enter the websites of other businesses. However a commercial bank may not advertise or do proactive selling on behalf of other businesses as detailed below:

- Commercial banks can display the logo or motto of other businesses on the first page, which is the main page, of the commercial bank's website.

- Commercial banks are not allowed to gain revenue from displaying the logo or motto of other businesses, since this is deemed as advertising for other business.

- Commercial banks may not perform any act that induces the customer to enter the website of another business which the commercial banks have a connection with by, for example, email or fax directed to the customer, or presenting other business products or service information either with a picture, symbol, or motto which describes the characteristics, price or benefits of the products or services of another business.

  • In order to prevent the problems or disputes which can occur during negotiations between the customer (buyer) and other businesses (seller), it is required that transactions of other businesses cannot be carried out on the commercial bank's website.
  • When calculating internet service fees for customers and other businesses, commercial banks may charge fees in accordance with market prices, in order to create competition, and must give due consideration to the fair treatment of customers.

Kitti Pintavirooj

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