PBOC to adopt new regulations for non-bank online payments

Monday 17 March 2014 13:12 CET | News

Chinese financial institution People’s Bank of China (PBOC) has issued two drafts for new regulations for non-bank online payment providers, in a bid to restrict the nation’s internet finance sector.

As per the regulations, the maximum transfer via third-party payment accounts will not be allowed to exceed USD 162.6 per single transaction and the cumulative total of transfers per year must be no more than USD 1630.10 (CNY 10,000).

The draft rules for management of payment providers online services and draft guidelines for development of mobile payment services also stipulate that payment providers will be ordered to implement separate management of money transferred to users’ accounts, which can only be used for consumption and cannot be transferred back into bank accounts.

As to mobile payment services, the draft guidelines specifies that third-party payment providers will be banned from offering internet payment transactions linking buyers and certain offline retailers.

The rules have yet to come into being and the central bank may make adjustments to the regulations based on opinions that it receives from relevant parties.

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Keywords: PBOC, regulations, online, mobile, payments
Categories: Payments & Commerce
Countries: World
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