On June 29, the website of the People's Bank of China released the “Circular of the General Office of the People's Bank of China on Matters Concerning the Deposit of All Payments for Payment of Institutional Customers” (“Notice”). The "Notice" pointed out that starting from July 9, 2018, the proportion of depositors' reserve funds in payment institutions will be gradually increased on a monthly basis, and by January 14, 2019, a 100% centralized deposit will be realized. The deposit time is the second Monday of each month (subject to postponement of the holidays), and the deposit base is the average daily balance of the customer's provision for the previous month.
Attachment: Notice of the General Office of the People's Bank of China on the Relevant Matters Concerning the Deposit and Payment of All Payments from Institutions
People’s Bank of China’s headquarters in Shanghai, branches, business management departments, city center sub-branches of provincial capitals (capitals), and sub-provincial city center sub-branches; various countries have commercial banks, joint-stock commercial banks, China Postal Savings Bank; China UnionPay Co., Ltd. Netlink Clearing Co., Ltd.; non-bank payment institutions:
In order to implement the spirit of strengthening the financial supervision and preventing financial risks of the Ninth Party Congress, and in accordance with the special rectification work of the Party Central Committee and the State Council on Internet financial risks, the People's Bank of China decided to gradually increase the proportion of payment deposits for customers of payment institutions to 100. %, the relevant matters are now notified as follows:
1. From July 9th, 2018, the proportion of depositors’ payment deposits for payment institutions will be gradually increased on a monthly basis, and by January 14th, 2019, 100% centralized deposits will be realized. The deposit time is the second Monday of each month (subject to postponement of the holidays), and the deposit base is the average daily balance of the customer's provision for the previous month. The balance of the cross-border renminbi reserve fund account, fund sales settlement account and foreign exchange reserve fund account shall not be included in the deposit base for the moment (see Annex 1 for specific requirements).
Second, in order to meet the specific business needs of the payment institution, the payment institution may hold a dedicated account for the relevant business in the standby gold bank.
(1) A payment institution that conducts cross-border RMB business can hold a cross-border RMB reserve fund account. In the course of conducting business, it should comply with the relevant provisions of the People's Bank’s cross-border RMB business.
(2) Payment agencies providing fund sales and payment services can hold a special account for fund sales and settlement. In the course of conducting business, they should abide by the relevant provisions of the China Securities Regulatory Commission.
(3) A payment institution that is approved to handle the business of “issuance and acceptance of prepaid cards” may hold 1 reserve fund account. This account can only be used to collect customers' funds such as purchase of cards, recharge, etc. Funds in the account should be deposited in the "preparation fund for centralized depository accounts of the People's Bank of China" before the deadline of the large-sum payment system business on each working day.
(IV) The opening and use of foreign exchange reserve funds accounts, and the implementation of the current regulations of the State Administration of Foreign Exchange.
Except for the above-mentioned cross-border renminbi renminbi reserve accounts, fund sales settlement special accounts, prepaid card standby funds accounts and foreign exchange reserve fund accounts, the payment institution shall cancel the remaining reserve funds accounts of commercial banks before January 14, 2019. .
3. From the date of the issuance of this notice, the payment institution shall open a "preparation for payment at the branch of the People's Bank of China at the place where the legal person is located before January 14, 2019, in accordance with the business connection with China UnionPay Co., Ltd. or Netlink Clearing Co., Ltd. Gold centralized depository account”, and within two working days from the date of account opening, the “special deposit payment deposit account” opened by the original entrusted gold depository management bank will be accounted for (for specific procedures, see Attachment 2). The transfer of funds from the payment institution's "preparation fund for centralized depository accounts" shall be handled through China UnionPay Co., Ltd. or Netlink Clearing Co., Ltd.
4. China UnionPay Co., Ltd. and ChinaNetlink Clearing Co., Ltd. shall support the centralized deposit arrangements of customer reserve funds to support commercial banks and payment institutions to make timely and orderly access to ensure the normal handling of various businesses.
V. Branch offices of the People's Bank of China shall, in accordance with the provisions of this Circular, guide the payment institutions and commercial banks within their jurisdiction to do a good job of the relevant work, encourage and support payment agencies that meet the conditions to execute in advance, and require the payment institutions to strengthen liquidity management and ensure that the reserve funds are centralized. Deposits are carried out steadily and orderly.
The branch of the People's Bank of China is requested to forward this notice to a commercial bank that has customer depository qualifications in its jurisdiction. If you have any problems during the implementation, please report to the Payment and Settlement Department of the People's Bank in time.