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The Office held a regular briefing on the policies of the State Council at 4 p.m. on December 28, 2023 (Thursday), inviting Zhang Qingsong, Deputy Governor of the People's Bank of China, Li Mingzheng, Director of the Second Legislative Bureau of the Ministry of Justice, Liu Xiaohong, Head of the Law Department of the People's Bank of China, and Wang Sheng, Head of the Payment and Settlement Department of the People's Bank of China, to introduce the Regulations on the Supervision and Administration of Non-bank Payment Institutions and answer questions from reporters.
The scene of the regular policy briefing of the State Council (photo by Zhao Yifan)
Shou Xiaoli, Deputy Director of the Information Bureau and Spokesperson of the Information Office of the State Council:
Good afternoon, ladies and gentlemen. Welcome to the regular policy briefing of the State Council. Recently, the Regulations on the Supervision and Administration of Non-bank Payment Institutions have been publicly released, in order to help you better understand the relevant situation, today we are very pleased to invite Mr. Zhang Qingsong, Deputy Governor of the People's Bank of China, to introduce the relevant situation of the Regulations and answer your questions. Also present at today's regular policy briefing were Mr. Li Mingzheng, Director of the Second Legislative Bureau of the Ministry of Justice, Mr. Liu Xiaohong, head of the Article and Law Department of the People's Bank of China, and Mr. Wang Sheng, head of the Payment and Settlement Department of the People's Bank of China.
Next, we would like to invite Mr. Zhang Qingsong to make an introduction.
2023-12-28 16:00:53
Zhang Qingsong (photo by Xu Xiang)
Zhang Qingsong, Deputy Governor of the People's Bank of China:
Thank you, moderator. Good afternoon, journalists, and friends, thank you for your continued concern and support for the work of the People's Bank of China. Today, I am very pleased to have some exchanges with you on the relevant issues of the "Regulations on the Supervision and Administration of Non-bank Payment Institutions" deliberated and adopted by the State Council's executive meeting recently. The Regulations are the first administrative regulations in the financial field issued after the Central Financial Work Conference, and are specific measures to implement the spirit of the Central Financial Work Conference, which is a milestone in promoting the high-quality development of the payment industry.
The payment industry has always played a fundamental role in serving the needs of the real economy and people's livelihood. After decades of development, the mainland has established a wide-coverage, safe and efficient payment and clearing system centered on the central bank payment and clearing system, with the participation of commercial banks, clearing institutions, and non-bank payment institutions. At present, there are more than 4,000 commercial banks and more than 180 payment institutions, effectively meeting the payment needs of 160 million business entities and hundreds of millions of consumers. The ownership rate of personal bank accounts in mainland China has exceeded 95%, which is higher than the average level of middle- and high-income economies, and the mobile payment penetration rate has reached 86%, ranking first in the world.
The fast, safe and inclusive modern financial system is one of the characteristic highlights and important symbols of financial services in mainland China. With the rapid development of non-bank payment services, commercial banks have gradually emerged to provide large-amount, corporate payment services, and payment institutions focus on small-amount and convenient payment services.
In the process of development of the payment industry, the People's Bank of China has always practiced the concept of "payment for the people", adhered to the overall development and security, and made every effort to maintain the good order of the payment industry. We will put the prevention and resolution of risks in a prominent position, disconnect the direct connection between payment institutions and banks, implement centralized depository of customer reserves, strictly investigate and deal with all kinds of violations of laws and regulations in accordance with the law, and effectively protect the legitimate rights and interests of users, and achieve positive results.
Accelerating the construction of laws and regulations in the field of payment is an important part of promoting the governance system and governance capacity building of the payment industry. Since 2018, the Ministry of Justice and the People's Bank of China have drafted the draft Regulations on the Supervision and Administration of Non-bank Payment Institutions on the basis of in-depth research and full demonstration. On November 24 this year, the executive meeting of the State Council deliberated and passed the "Regulations", which will be officially implemented on May 1, 2024. The promulgation of the "Regulations" further clarifies the rights, obligations and responsibilities of all parties in the payment industry, gives the regulatory authorities administrative powers in accordance with the law, effectively consolidates the legal foundation for the standardized and healthy development of the industry, and marks that the development of the payment industry has entered a new stage.
In the next step, the People's Bank of China and the Ministry of Justice will strengthen policy publicity and interpretation, and guide payment institutions to implement the provisions of the Regulations. At the same time, we will also step up the formulation of the detailed rules for the implementation of the "Regulations", and do a good job in the revision and clean-up of existing regulations and normative documents in the field of non-bank payment.
We believe that with the smooth implementation of the Regulations, the payment market will be more orderly, the payment ecosystem will be healthier, and the payment industry will develop better, so as to serve the high-quality development of the economy.
I'll give you a brief background. Next, my colleagues and I are very happy to answer the questions of each and every journalist friend. Thank you!
2023-12-28 16:11:24
Shou Xiaoli invites reporters to ask questions (photo by Luan Haijun)
Shou Xiaoli:
Thank you, Vice President Zhang Qingsong, for your introduction. Now let's move on to the question session, and please let us know your news organization before asking a question.
2023-12-28 16:12:51
CCTV reporter from China Central Radio and Television asked questions (photo by Luan Haijun)
CCTV reporter from China Central Radio and Television:
In recent years, what achievements has the payment industry made in serving the real economy and improving people's livelihood, and how will the "Regulations" guide the payment industry to better serve the real economy?
2023-12-28 16:14:27
Song Qingsong:
I'm here to answer your questions. The Central Financial Work Conference pointed out that finance should provide high-quality services for economic and social development. In recent years, the People's Bank of China has guided all parties in the industry to firmly establish the concept of "payment for the people", adhere to the people-centered value orientation, seek progress in the payment industry steadily, significantly improve service quality and efficiency, steadily advance reform and opening up, and further enhance its basic role in economic and social development. This is reflected in the following aspects:
First, the quality and efficiency of serving the real economy and people's livelihood needs continue to improve. Focusing on the goal of active trading and prosperous market, payment institutions have implemented the policy of fee reduction for detailed payments, and continued to make profits to the real economy, with an annual profit concession scale of between 30 billion and 40 billion. Promoting payment interconnection, e-wallets such as "UnionPay" have been connected to major online mobile payment scenarios, positive progress has been made in mutual recognition and mutual scanning of various barcodes, and the payment industry ecosystem is becoming open and diversified.
Second, the order of the payment industry has improved significantly. We have adhered to strict supervision and unswervingly, deepened the governance of the "capital chain" involved in fraud and gambling, and worked closely with public security and other departments to protect the people's "money bags". Efforts should be made to govern the order of the acquiring market and strengthen the self-discipline management of the industry. Pay close attention to the safe production of the payment and clearing system to ensure the smooth and efficient operation of the payment infrastructure.
Third, the high-level two-way opening up of the payment field has been steadily expanded. We adhere to openness and cooperation, and continue to promote the construction of a cross-border payment system, with participants in the Cross-border Payment System (CIPS) covering 111 countries and regions, covering 182 countries and regions, effectively serving the international use of RMB. Steadily promote the facilitation of cross-border mobile payment, and improve the convenience of payment for foreigners to work, live and travel in China.
The Regulations on the Supervision and Administration of Non-bank Payment Institutions promulgated this time are applicable to payment institutions that mainly provide small-amount and convenient services. According to statistics, the annual number of transactions of these payment institutions is about 1 trillion yuan, with an average transaction amount of 330 yuan, which is closely related to the business activities of business entities and the daily life of the public, and is of great significance for them to establish a stable and adequate supervision and management framework.
In order to guide payment institutions to further improve the quality and efficiency of serving the real economy, the "Regulations" have provided guidance from many aspects.
The first is to emphasize the core positioning of payment institutions to serve the real economy. It is clarified that the purpose of payment institutions in carrying out business shall be to provide small-amount and convenient payment services, and their supervision and management shall focus on whether the goal of serving the real economy is achieved.
The second is to require payment institutions to "strike iron and need to be hard". Appropriately raise the registered capital requirements for payment institutions, requiring them to have business systems, facilities and technologies that meet the requirements, as well as governance structures, internal control and risk management capabilities, etc.
The third is to adhere to the "return to the origin of payment business". Guide payment institutions to focus on and improve service levels, conduct business in accordance with the approved business type and geographical scope, and must not engage in other businesses that require approval in accordance with law without approval.
Fourth, encourage payment institutions to cooperate with banks. It is necessary not only to give full play to the advantages of payment institutions in terms of wide access to users and convenience of services, but also to encourage banks to play an important role in ensuring the safety of funds and improving the efficiency of capital use.
Fifth, we are committed to maintaining the order of fair competition. It is emphasized that payment institutions shall not carry out monopolistic or unfair competition acts, which hinder the order of fair competition in the market, and is conducive to protecting the legitimate rights and interests of payment users in accordance with the law.
Sixth, a number of regulatory red lines have been clarified. Guide payment institutions to firmly establish the business philosophy of "compliance is productivity and competitiveness", prevent illegal operations, and promote the healthy development of the industry. Thank you.
2023-12-28 16:14:39
Poster News reporter asks questions (photo by Luan Haijun)
Poster News Reporter:
When it comes to the standardized development of the third-party payment industry, we have to mention Order No. 2, which is the Administrative Measures for Payment by Non-bank Payment Institutions formulated by the People's Bank of China in June 2010. We have noticed that the current Regulations have undergone great changes compared with the previous Order No. 2, can you elaborate on the background and considerations of these changes?
2023-12-28 16:18:04
Wang Sheng (photo by Xu Xiang)
Wang Sheng, head of the Payment and Settlement Department of the People's Bank of China:
Thank you for your question. When Order No. 2 was issued in 2010, payment institutions were in the early stage of development, and their business scale and market share were relatively small. In the past 10 years, the payment institution business has continued to innovate, and the business volume has grown rapidly, with the compound annual growth rate of the number of transactions and the amount exceeding 40%. In 2022, 185 payment institutions across the country will handle more than one trillion transactions with an amount of nearly 400 trillion yuan, serving more than 1 billion individuals and tens of millions of merchants, playing an important role in the field of small-value and convenient payment, and making positive contributions to the development of the real economy and the improvement of people's livelihood.
In the process of rapid development of payment institutions, we have also noticed that Order No. 2 has gradually lagged behind market development and regulatory needs. For example, Order No. 2 is a departmental regulation, with a low legal level and insufficient regulatory effect; Order No. 2 is not conducive to strengthening the corporate governance requirements of payment institutions by implementing business supervision in accordance with the "license before license" approach; in addition, Order No. 2 divides payment business types according to transaction channels and acceptance terminals, which is not adaptable enough to the emerging payment methods in the market.
The latest Regulations focus on regulatory consistency and continuity, and maintain a good connection with Order No. 2 and regulatory practice. At the same time, compared with Order No. 2, the "Regulations" are: first, to upgrade departmental rules to administrative regulations, and consolidate the legal foundation for the standardized and healthy development of the payment industry. In the form of national legislation, the Regulations clarify the conditions and legal responsibilities for the entry, alteration and exit of payment institutions, stipulate the rules and supervision and management requirements for payment business, strictly control the access of payment institutions, prevent the risk of business violations, and strictly prevent the use of payment platforms to engage in illegal fundraising, telecommunications fraud and other illegal and criminal activities, and make the regulatory norms more authoritative and transparent.
The second is to pay attention to the combination of institutional supervision and functional supervision. The Regulations clearly implement the management of "license before license" for payment institutions, stipulate that the controlling shareholders and actual controllers of payment institutions shall comply with the provisions on equity management, put forward clear regulatory requirements for corporate governance and management of systemically important institutions, and build a framework of "institutional supervision". In addition, the payment business is reclassified from the dimensions of funds and information. Under the new classification method, regardless of the impact of new payment channels and payment methods, regardless of the external form of payment business, it can be classified and managed according to the essence of the business, so as to better meet the needs of payment business development and implement "functional supervision".
The third is to further emphasize the protection of the legitimate rights and interests of users. In view of the leakage of user information and misappropriation of user funds by individual payment institutions in recent years, the "Regulations" clarify the principle of fairness in payment service agreements and prevent "overlord clauses"; strengthen the management of reserve funds to protect the safety of users' funds and property; clarify the principles of user information processing to protect users' right to know and choose; strengthen supervision and management, stipulate the legal responsibility of payment institutions for violations of laws and regulations, and effectively protect the legitimate rights and interests of payment users.
Thank you.
2023-12-28 16:18:17
Xinhua News Agency reporter asked a question (photo by Luan Haijun)
Xinhua News Agency:
The "Regulations" will be issued by non-bank payment institutions and their business activities further into the track of the rule of law for supervision, please introduce the drafting process of the "Regulations", the general idea of the legislation, and what content is reflected? Thank you.
2023-12-28 16:22:14
Li Mingzheng (photo by Xu Xiang)
Li Mingzheng, Director of the Second Legislative Bureau of the Ministry of Justice:
Thank you for your question. In accordance with the arrangements of the State Council's legislative work plan, the Ministry of Justice and the People's Bank of China have adhered to scientific, democratic, and law-based legislation, carried out in-depth investigation and research, extensively listened to the opinions of non-bank payment institutions, commercial banks, clearing institutions, various users, and industry associations, solicited the opinions of various localities and departments on many occasions, studied and solved problems affecting the standardized and healthy development of the non-bank payment industry, and formed the draft "Regulations on the Supervision and Administration of Non-bank Payment Institutions" after repeated revisions. On November 24, 2023, the executive meeting of the State Council deliberated and approved the draft, and on December 9, Premier Li Qiang signed a decree of the State Council to officially promulgate the Regulations.
In the process of drafting the "Regulations", the following ideas were mainly grasped: First, implement the party and the state's line, principles, policies, decision-making and deployment, and promote healthy competition and standardized and healthy development of the non-bank payment industry. The second is to adhere to problem-oriented and systematic thinking, and bring the supervision of the non-bank payment industry into the track of rule of law and standardization, so as to prevent payment risks. The third is to guide payment institutions to serve the real economy, better protect the legitimate rights and interests of users, and further play their positive role in prospering the market economy and facilitating people's lives.
The Regulations consist of six chapters and 60 articles, which mainly include four aspects:
The first is to clarify the definition and establishment license of non-bank payment institutions. A non-bank payment institution refers to a company that, in addition to banking financial institutions, transfers monetary funds according to electronic payment instructions submitted by users. The establishment of non-bank payment institutions shall be approved by the People's Bank of China and a payment business license shall be obtained. Non-bank payment institutions shall aim to provide small-amount and convenient payment services, and shall not engage in other businesses that require approval in accordance with law without approval.
The second is to improve the rules of payment business. To meet the needs of the development of non-bank payment business, clarify new business classification methods, and authorize the People's Bank of China to formulate specific rules. Focusing on the overall requirements for ensuring payment security, clarify business management regulations, strengthen the management of payment accounts and reserves, and prevent risks.
The third is to protect the legitimate rights and interests of users. Stipulate that non-bank payment institutions shall sign payment service agreements with users in accordance with the principles of fairness and good faith, to ensure the security of users' funds and information, strengthen user risk management, and prevent payment accounts from being used for illegal fundraising, telecommunications network fraud, money laundering, gambling and other illegal and criminal activities.
Fourth, clarify regulatory responsibilities and legal responsibilities. Clarify the People's Bank of China's supervisory responsibilities, regulatory measures and risk disposal measures. It stipulates that the supervision and management of payment institutions shall coordinate development and security, and maintain the order of fair competition. At the same time, the Regulations also stipulate the corresponding legal liability for illegal acts. Thank you.
2023-12-28 16:22:24
The Paper reporter asked a question (photo by Luan Haijun)
The Paper:
Non-bank payment business is developing rapidly with China's digital economy and new forms of economy such as e-commerce, and plays an important role in the field of small-value and convenient payment. What impact will the promulgation of the "Regulations" have on the current payment market, and how will it promote the standardized and healthy development of the industry? Thank you.
2023-12-28 16:32:09
Song Qingsong:
Thank you for your question, I'm here to answer that. As we all know, with the rapid development of Internet technology and the deep penetration of economic life, the payment industry has maintained a very rapid development for a period of time. We judge that this stage will continue to grow as it moves to maturity, but not explosively. With the rapid development of the industry, there are some problems in the payment industry. For example, the compliance awareness of payment institutions needs to be firmly established, the pattern of industry development still needs to be optimized, there are shortcomings in the service capabilities of institutions, and the construction of regulatory capacity needs to be continuously strengthened. Therefore, in the process of promoting the promulgation of the "Regulations", we have always adhered to the problem-oriented approach and always focused on the high-quality development of the industry. In this process and context, the "Regulations" are about to come out. I would like to make the following points:
First, the Regulations are basically consistent with the regulatory practice in recent years. The "Regulations" have upgraded the effective practices that have been effective in promoting development and strengthening supervision in recent years to administrative regulations. In the process of enacting legislation, we have paid special attention to fully absorbing and absorbing the opinions and suggestions of all quarters. Enhancing the consensus of all parties on policies and aligning them with the macro policy orientation will help stabilize market expectations and enhance development confidence. Media friends may have noticed that after the executive meeting of the State Council deliberated and passed the "Regulations", different types of payment institutions in the industry have expressed their understanding of the "Regulations" and some of their opinions and suggestions.
The second is to pay attention to the consistency of supervision. The same regulatory measures are proposed for similar businesses, and the basic institutional norms for the equal treatment of payment institutions under various ownership systems are confirmed. All these are conducive to promoting fair competition and stimulating market vitality.
The third is to set up a certain transition period. The effective date of the Regulations is May 1, 2024, which is relatively sufficient to prepare for the payment institutions, which is conducive to the payment institutions to familiarize themselves with and digest the relevant legal provisions and do a good job in implementing them.
In the form of national legislation, the Regulations provide a solid institutional guarantee for the healthy development of the payment industry in the future, and strive to create a stable, transparent, standardized and predictable business environment based on the rule of law, which is conducive to promoting the long-term standardized and healthy development of the payment service market. There are several specific impacts:
The first is to ensure fair competition in the industry through fair supervision. The "Regulations" adhere to the principle of licensed operation and strengthen the supervision of the whole chain and the whole cycle, which is conducive to strengthening the implementation of supervision, maintaining the healthy development order of the industry, and effectively preventing risks such as business alienation, misappropriation of funds, and data leakage.
The second is to improve the quality and efficiency of payment service supply. The "Regulations" clarify the purpose of small and convenient services for payment institutions, which is conducive to enhancing the service capabilities of inclusive payment, people's livelihood, and suitable for the elderly. Emphasizing the maintenance of the order of fair competition is conducive to guiding the leading payment institutions to play a good role as "head geese", pay more attention to the interests of the industry, society and the public, take the lead in maintaining fair competition, promote interconnection, and expand ecological openness.
The third is to promote high-level opening-up. The Regulations give national treatment to foreign-invested payment institutions, and insist on paying equal attention to "bringing in" and "going out", which is conducive to further promoting the efficiency of domestic and cross-border capital circulation and improving the level of payment services for new forms of business such as cross-border e-commerce.
Thank you.
2023-12-28 16:33:33
Hong Kong Bauhinia Magazine reporter asked a question (photo by Luan Haijun)
Hong Kong Bauhinia Magazine reporter:
In recent years, some payment institutions have harmed the rights and interests of users, how do the "Regulations" effectively protect the legitimate rights and interests of users?
2023-12-28 16:33:52
Liu Xiaohong (photo by Xu Xiang)
Liu Xiaohong, head of the People's Bank of China's Article and Law Department:
Thank you for your question. For a long time, the People's Bank of China has actively practiced the concept of "payment for the people" and attaches great importance to the protection of the legitimate rights and interests of users in the payment field. The "Regulations" focus on the protection of the legitimate rights and interests of users from the following aspects.
The first is to clarify the principle of fairness in payment service agreements and protect users' right to fair trade. The Regulations stipulate that the payment service agreement shall specify the rights and obligations of the payment institution and the user, the principle of dispute settlement and the liability for breach of contract, and shall not include the exclusion or restriction of competition, the unreasonable exemption or reduction of the liability of the payment institution, the increase of the user's liability, the restriction or exclusion of the user's main rights, etc. For terms that are sufficient to affect whether the user agrees to use the payment service, the user shall be reminded of the terms and explained in a reasonable manner. The proposed change to the agreement shall solicit the opinions of users and make an announcement.
The second is to strengthen the management of reserves to protect the safety of users' funds and property. The Regulations clarify the requirements for the transfer of reserves and prohibit payment institutions from managing reserves. It stipulates a centralized depository system for reserves, requiring payment institutions to deposit reserves with the People's Bank of China or commercial banks that meet the requirements of the People's Bank of China.
The third is to clarify the rules for the processing of user information to protect users' right to know and the right to choose. The Regulations stipulate that payment institutions shall follow the principles of legality, legitimacy, necessity and good faith in the processing of user information, disclose the rules for the processing of user information, clearly indicate the purpose, method and scope of processing user information, and obtain the consent of users, in line with the provisions of the Civil Code, the Personal Information Protection Law and other laws on personal information protection.
Fourth, promote the establishment of a diversified dispute resolution mechanism to protect the remedial channels for users' rights. The Regulations require payment institutions to handle disputes with users in a timely and proper manner, fulfill their main responsibilities for handling complaints, and effectively protect the legitimate rights and interests of users. Encourage the use of mediation, arbitration and other means to resolve disputes between users and payment institutions, and promote the efficient resolution of disputes.
Thank you.
2023-12-28 16:34:04
The first financial reporter asked questions (photo by Luan Haijun)
CBN Reporter:
What is the basis for formulating the new classification standards? How to do a good job of connecting the new business types with the original classification methods? What is the progress of the specific implementation rules of the People's Bank of China?
2023-12-28 16:34:35
Wang Sheng:
Thank you for your question. In the past, we divided the payment business type into three categories: online payment, bank card acquiring and prepaid card issuance and acceptance, and online payment was subdivided into Internet payment, mobile phone payment, fixed telephone payment and other types. Based on years of regulatory practice, the Regulations adhere to the concept of functional supervision, and are divided into two categories: stored value account operation and payment transaction processing based on whether the payer can receive the prepaid funds from the payer.
New classification methods: First, it has good scalability, which is conducive to preventing regulatory gaps. Regardless of the external manifestation of the payment business, it can be classified and managed according to the essence of the business, which can better adapt to the development and changes of the industry, and can quickly classify the emerging payment business in the market into two basic business types for supervision. Second, it is conducive to the realization of "the same business, the same supervision" and the promotion of fair competition. Based on the essence and risk characteristics of the business, the new classification method penetrates the superficial form of the payment business, which is conducive to unifying the business regulatory requirements and forming a fairer institutional environment.
The transitional measures for established non-bank payment institutions will be further clarified in the detailed rules for the implementation of the Regulations. With regard to the bridging of old and new business licenses, we will adhere to the principle of "smooth transition" and include existing payment institutions in the new classification method for management. On the one hand, it not only takes into account the licensing framework under the current classification method, but realizes a smooth transition between the old and new classifications, without expanding the original business and geographical scope, and has less impact on the market, and on the other hand, it ensures the scalability of the new classification method and avoids the iterative changes of payment channels and payment tools in the future, which will lead to frequent amendments to the regulations due to the adjustment of payment business classification.
At present, the People's Bank of China is stepping up the formulation of detailed rules for the implementation of the "Regulations", and will follow the relevant provisions of the legislative procedures to fully solicit and absorb the opinions of all parties before promulgating them to ensure the smooth implementation of the "Regulations".
Thank you.
2023-12-28 16:34:57
Cover news reporter asks questions (photo by Luan Haijun)
Cover News Reporter:
The implementation of access management and a clear exit mechanism are the keys to preventing and controlling payment risks. What are the outstanding measures of the "Regulations" in terms of access permits and exit mechanisms, and what is the significance of risk prevention? Thank you.
2023-12-28 16:39:14
Liu Xiaohong:
Thank you for your question. The Central Economic Work Conference proposed that all financial activities should be brought under supervision in accordance with the law, and institutional supervision should be strengthened in an all-round way. In order to deepen the implementation of the arrangements of the Party Central Committee and the State Council, the Ministry of Justice and the People's Bank of China adhered to problem-oriented and systematic thinking in the process of formulating the Regulations, and incorporated the whole chain and cycle of payment institutions into the track of rule of law and standardization. Chapter II of the Regulations provides a special chapter on the establishment, alteration and termination of payment institutions.
The first is to adhere to the licensed operation and strict entry threshold. The Regulations change the existing business license into an institutional license, and implement access management in accordance with the principle of "license before license". Clarify the requirements for the registered capital, major shareholders, actual controllers, directors, supervisors, senior managers, business premises, security measures, corporate governance structure and other aspects of the payment institution at the time of establishment, appropriately raise the entry threshold for registered capital, and clarify that the minimum amount is 100 million yuan, and it should be paid-in monetary capital.
Second, major changes are included in the administrative license. In order to plug regulatory loopholes, the Regulations specify that payment institutions should be approved by the People's Bank of China for changing their names, registered capital, business types or business geographical scope, changing their domicile across provinces, autonomous regions and municipalities directly under the Central Government, changing major shareholders or actual controllers, changing directors, supervisors or senior management, merging or splitting, etc.
The third is to improve the withdrawal mechanism of payment institutions. Since 2016, in accordance with the principles of marketization and rule of law, the People's Bank of China has guided some high-risk institutions to withdraw from the market in accordance with the law. On the basis of summarizing past experience, the Regulations clarify the circumstances and procedures for the withdrawal of payment institutions, and at the same time propose that the withdrawal should be formulated in accordance with the provisions to effectively protect the security of user funds and information, so as to achieve an orderly exit.
Fourth, intensify the handling of violations of laws and regulations. In accordance with the requirement of "managing the legal is more important than managing the illegal", the "Regulations" make it clear that the establishment of payment institutions, engaging in or engaging in payment business in disguised form without approval in accordance with the law shall be banned. At the same time, administrative penalties such as warnings, circulars of criticism, fines, restrictions on part of payment business, and revocation of payment business licenses shall be given to violations of administrative licensing management according to the circumstances, increasing the cost of violations.
Thank you.
2023-12-28 16:39:37
Shou Xiaoli:
One last question.
2023-12-28 16:40:45
China Daily reporter asked a question (photo by Luan Haijun)
China Daily:
The domestic public generally likes and is Xi to use mobile payment, while overseas people come to China mostly use bank cards and cash and other payment methods, which is not adaptable. What has been done to facilitate the payment of people coming to China from abroad? Thank you.
2023-12-28 16:51:02
Song Qingsong:
I'm here to answer your question, thank you again for your question. The People's Bank of China attaches great importance to the facilitation of payment for overseas personnel coming to China and has carefully analyzed the causes of the problem. From the perspective of the evolution of global retail payment tools, some overseas people in China are inconvenient to pay, largely because they are in different stages of payment Xi, which are different from each other. As you pointed out, we are all Xi to mobile payment, but many overseas people to China, especially those from Europe and the United States, are still Xi to using bank cards and cash, and their payment Xi habits are inertial. Therefore, we must solve this problem of inconvenience for foreigners to pay in China due to the difference in payment and Xi between the two sides.
In order to solve this problem, the People's Bank of China, in conjunction with relevant departments, has established a special working mechanism, issued guiding opinions, and is organizing all units to advance various tasks in an orderly manner. This solution can be summarized as "large-value card swiping, small-amount QR code scanning, and cash pocket". Let me explain specifically.
The first is to improve the environment for accepting overseas bank cards. We organized all branches of the People's Bank of China to find out the acceptance of outdoor cards for domestic merchants under their jurisdiction, and worked with departments of commerce, culture and tourism to demarcate key business districts, airports, railway stations and other major foreign-related venues, and guided commercial banks and payment institutions to accelerate the opening of foreign card acceptance by key merchants. This is known as "big card swipe".
The second is to enrich the supply of mobile payment products. We have guided Alipay, Tenpay, China UnionPay and others to launch products such as "External Card Binding and Internal Use", "Outsourcing and Internal Use", and UnionPay Travel Card, and innovated and developed digital RMB solutions to meet the mobile payment needs of overseas visitors to China. This is a "small amount scan".
The third is to improve the environment for the use of cash. Organize banks to carry out ATM foreign card acceptance transformation, and improve the ATM coverage rate that supports foreign card cash withdrawal. Continue to carry out special rectification work on the refusal to accept RMB cash. This is the last "cash pocket".
In addition, we continue to improve our account services. Guide banks to implement classified and hierarchical management of accounts, optimize the account opening process, and improve the convenience level of opening bank accounts for overseas people in China.
We have also actively carried out publicity and organized the People's Bank of China (PBOC) system and payment service providers to make full use of online and offline channels in overseas visa centers, ports, airports and other places to carry out publicity with wide coverage and high reach.
On the whole, through the joint efforts of all parties, our work has achieved certain positive results. Especially during major international events and conferences such as the Beijing Winter Olympics, the Chengdu Universiade, the Hangzhou Asian Games, and the Tianjin Summer Davos Forum, it has fully guaranteed that overseas visitors to China can enjoy fast, safe and convenient payment services, and modern payment has become a beautiful "business card" to show the high-quality development of the mainland.
In the next step, the People's Bank of China will work with relevant departments to give full play to the role of the special working mechanism, and continue to promote the acceptance of foreign cards, mobile payment, cash use, account services, publicity and promotion in accordance with the established work plan and goals, so as to further enhance the payment facilitation for overseas visitors to China. Here, I also implore the media friends to work together to promote this work, and our doors are opening wider and wider, so that customers can enjoy our high-quality, safe and convenient payment services. This is my answer to your question.
I would also like to take this opportunity to make a brief summary. The theme of this briefing is the "Regulations on the Supervision and Administration of Non-bank Payment Institutions", and payment is closely related to everyone, and I believe that all of you will use a variety of payment services every day. For a long time, remittances could only go to the bank, and I believe that the young friends here today rarely go to the bank. However, both banks and non-bank payment institutions are the main entities that provide payment services. Let me tell you a basic situation: if you count according to the number of payments, 80% are payment institutions, 20% are banks, if you calculate according to the amount of payment, the majority is banks, and the small proportion is in payment institutions. Therefore, banks and non-bank payment institutions together constitute the main body of payment services, with a clear division of labor and mutual cooperation, with the purpose of providing safe and efficient payment services for business entities and the public. Therefore, scanning code payment and mobile payment are the business cards we are proud of and an important embodiment of high-quality development, which is a new solution brought by scientific and technological progress and industry development to business entities and the public, which is a good thing. However, in the process of rapid development, there are some problems and risks, and it is based on this that the "Regulations on the Supervision and Administration of Non-bank Payment Institutions" have been promulgated. The People's Bank of China is the administrative organ authorized by the Regulations, and we will administer according to law, strictly implement the provisions of the Regulations, treat and supervise all kinds of payment institutions, whether they are head institutions or small and medium-sized institutions, equally and according to law, to ensure that they provide high-quality payment services to business entities and the public. At the same time, we will continue to build a healthy and dynamic payment format.
Thank you.
2023-12-28 16:51:13
Shou Xiaoli:
Thank you for your participation, thank you for your participation, that's all for today's regular policy briefing, goodbye everyone.