Last updated at: (Beijing Time) Friday, August 29, 2003
New Bank Account Regulation to Take Effect in China
The People's Bank of China, the central bank, yesterday clarified the reasons it was introducing a new bank account regulation to separate clearing functions from personal savings accounts.
The People's Bank of China, the central bank, yesterday clarified the reasons it was introducing a new bank account regulation to separate clearing functions from personal savings accounts.
The Administrative Rules on Renminbi Bank Clearing Accounts will take effect on Sunday. They stipulate that individuals need to open separate clearing accounts for settlement and checking purposes. The measure is aimed at keeping abreast with the changing payment needs of the Chinese people and will help banks improve their competitiveness, an unnamed bank spokesman said.
Opening personal clearing accounts, which also allow for savings account functions such as deposits and cash withdrawals, will not mean extra costs for depositors, he stressed.
The regulation was announced earlier this year and prompted worries among ordinary bank customers about possible additional legwork and expenditure.
On their first visit to their bank after the regulation comes into effect, individual customers can decide either to open a new clearing account or designate an existing account. Their bank card accounts and savings accounts with settlement functions will start to be treated as clearing accounts but they will need to confirm this in person when they visit the bank.
The new regulation also establishes tighter controls over cross-account transfers of funds, largely by making a distinction between personal clearing accounts and corporate clearing accounts. The spokesman said this would, to some extent, prevent money laundering, financial fraud and other illegal transfers of funds.