Updated December 17th, 2023 at 19:23 IST
China introduces tougher rules for non-bank payments
China tightens rules for non-bank payment platforms to prevent fund misappropriation and illicit activities.
China's State Council, under the leadership of Premier Li Qiang, released regulations set to take effect on May 1, governing the supervision and management of non-banking payment institutions.
These regulations, outlined in a joint statement by the People's Bank of China and the Ministry of Justice, include more stringent licensing requirements and a mandate for enhanced risk management by non-bank payment platforms to prevent fund misappropriation and other illicit activities.
The rules also emphasise the importance of user information protection, the transparent display of service prices, and the imposition of "reasonable" fees. Additionally, they introduce heightened penalties for serious violations.
In instances of rule violations, the joint statement specifies that the central bank may impose fines, restrict certain payment operations, order business suspensions for corrective measures, or even revoke payment business licenses.
(With Reuters Inputs)
Published December 17th, 2023 at 19:23 IST