Interim Measures for the Administration of Online Banking Business

Chapter I: General Provisions

Article 1 In order to regulate and guide the healthy development of the mainland's online banking business, effectively prevent the risks of banking business operations, and protect the legitimate rights and interests of bank customers, these interim measures are formulated in accordance with the Law of the People's Republic of China on the People's Bank of China and the Law of the People's Republic of China on Commercial Banks.

Article 2 These Measures apply to all kinds of banking institutions established within the territory of People's Republic of China with the approval of the People's Bank of China, including policy banks, Chinese-funded commercial banks, as well as joint venture banks, foreign-funded banks and branches of foreign banks established in accordance with the Regulations on the Administration of People's Republic of China Foreign-funded Financial Institutions.

Article 3 The term "online banking business" as used in these Measures refers to the financial services provided by banks through the Internet.

Article 4 A banking institution that opens online banking business within the territory of the People's Republic of China shall submit an application to the People's Bank of China before opening the business, and it can only be opened after the People's Bank of China examines and approves it.

Institutions registered abroad in the People's Republic of China and registered in Hong Kong, Macao and Taiwan to provide online banking services to residents of mainland People's Republic of China through the Internet, and institutions in mainland People's Republic of China other than Hong Kong, Macao and Taiwan to provide online banking services to overseas residents through the Internet must apply to the People's Bank of China in advance.

Article 5 The People's Bank of China shall be responsible for carrying out daily supervision, on-site inspection and off-site supervision of banks' online banking business.

Chapter 2 Market Access for Online Banking

Article 6 A bank that provides online banking business shall meet the following requirements:

(1) The internal control mechanism is sound, and there is an effective management system for identifying, monitoring, measuring and controlling the risks of traditional banking business and online banking business;

(2) The bank has formed a unified standard computer system and a well-functioning computer network, and has a good electronic infrastructure;

(3) The bank's existing business activities are running smoothly, and the main asset and liability indicators such as asset quality and liquidity are controlled within a reasonable range;

(4) Have qualified management personnel and technical personnel. The senior management of the bank should have the necessary knowledge of the operation and management of the online banking business, and be able to effectively manage and control the risks of the online banking business;

(5) When a branch of a foreign bank applies to open online banking business, the regulatory authority of the country (region) where its head office is located shall have the legal framework and regulatory capacity to supervise the online banking business;

(6) Other conditions required by the People's Bank of China.

Article 7 Policy banks, Chinese-funded commercial banks (excluding city commercial banks), joint venture banks, foreign-funded banks and branches of foreign banks shall apply to the head office of the People's Bank of China for online banking business by their head offices.

To open online banking business, the head office of a city commercial bank shall apply to the local branch and business management department of the People's Bank of China.

Article 8 A bank applying for online banking business shall submit the following documents and materials (in triplicate) to the People's Bank of China:

(1) Application for opening online banking business;

(2) The feasibility study report on the establishment of online banking business shall at least include:

1. The type of online banking business to be launched;

2. Construction of electronic infrastructure of banks;

3. Staffing of online banking management personnel and professionals;

4. Risk management measures for online banking business;

5. Online banking operation support system, description of key technologies, and system security measures;

6. Prediction of losses and gains of online banking business, etc.;

(3) Security assessment reports issued by authoritative assessment institutions recognized by the People's Bank of China on their online banking operating systems;

(4) Internet banking business development plan;

(5) Contingency plans and business continuity plans for the operation of online banking operations;

(6) The rules and regulations and operating procedures for the online banking business to be established;

(7) The contact person, contact telephone number, fax number, and e-mail address of the applicant unit;

(8) Other documents and materials required by the People's Bank of China.

Article 9 After policy banks, Chinese-funded commercial banks (except city commercial banks), joint venture banks and foreign-funded banks are allowed to open online banking business, if they need to increase the variety of online banking business, their head offices shall report to the head office of the People's Bank of China for review; After a branch of a foreign bank is approved to open online banking business, if it needs to add new types of online banking business, the main reporting bank of the branch in the territory of the People's Republic of China shall report to the head office of the People's Bank of China for review.

If a city commercial bank needs to increase the variety of online banking business, its head office shall report to the local branch and business management department of the People's Bank of China for review.

Article 10 The People's Bank of China shall implement two systems: the examination and approval system and the filing system for applications for banks to open new online banking services.

Banks applying for the addition of the following new business varieties are subject to the approval system:

(1) New types of online banking business developed by banks with the help of the Internet, which are different from traditional banking services and form on-balance sheet assets or liabilities;

(2) Banks use the Internet to handle payment and settlement operations other than credit payments;

(3) Banks use the Internet to launch traditional banking businesses with on-balance sheet assets that have not been approved by the People's Bank of China;

(4) Banks use the Internet to establish new business varieties directly related to the securities and insurance industries.

The record-filing system applies to the addition of other new business varieties by banks through the Internet.

Article 11 Banks applying for new online banking services in accordance with Article 10 of these Measures shall submit the following documents and materials (in triplicate) to the People's Bank of China:

(1) Applications for increasing business varieties;

(2) Add a business feasibility study report, which at least includes:

1. Definition of the business to be added;

2. The risk characteristics and preventive measures of the business to be increased;

3. Forecast of loss and income of the business;

(3) The rules and regulations and operating procedures for applying for an increase in business varieties;

(4) The contact person, contact telephone number, fax number, and e-mail address of the applicant unit;

(5) Other documents and materials required by the People's Bank of China.

Article 12 The People's Bank of China shall issue a formal approval document within 30 working days after accepting the application for a bank to apply to the People's Bank of China for the establishment of online banking business or the application for adding new business varieties applicable to the examination and approval system in accordance with Articles 7 and 10 of these Measures.

If a bank adds new business varieties applicable to the filing system in accordance with Article 10, the regulatory department of the People's Bank of China shall reply to the applicant bank in the form of a filing notice within 15 working days after accepting the application.

Article 13 Before a bank branch opens online banking business, it shall report to the local jurisdiction bank of the People's Bank of China on the types and attributes of the business it has started.

Chapter 3 Risk Management of Online Banking Business

Article 14 Banks carrying out online banking business shall comply with the laws, regulations and rules of the State on the security of computer information systems, the management of commercial cryptography, and the protection of consumers' rights and interests.

Article 15 When a bank carries out online banking business, the board of directors and senior management of the bank shall establish a strategy for the development strategy and operation security strategy of the online banking business, formulate and implement comprehensive, comprehensive and systematic business management rules in accordance with relevant laws and regulations, and shall effectively manage the operation and existing risks of the online banking business.

Article 16 Banks shall formulate and implement adequate physical security measures to effectively prevent illegal access to key equipment by external or internal unauthorized personnel.

Article 17 Banks shall adopt appropriate encryption technologies and measures to confirm the identity and authorization of online banking users, ensure the confidentiality and authenticity of online transaction data transmission, and ensure the integrity of information transmitted through the network and the non-repudiation of transactions.

Article 18 The bank shall implement effective measures to prevent the online banking transaction system from being attacked by computer viruses.

Article 19 The bank shall formulate the necessary system operation assessment indicators, regularly or irregularly test the operation of the bank's network system and business operating system, and discover the hidden dangers of the system and the intrusion of hackers into the system in a timely manner.

Article 20 Banks shall incorporate the operating system of online banking business into the bank's contingency plan and business continuity plan.

Article 21 The Bank shall explain and disclose to the Customer the trading rules of various online banking products in an appropriate manner, and shall explain to the customers the trading risks of a certain online banking product and its rights and obligations in specific transactions when the customer applies for a certain online banking business product.

Article 22 When a bank engages in online banking business, it shall be equipped with a special audit force for online banking business to conduct regular audits of online banking business.

Article 23 Banks shall, in accordance with the needs of the development of the bank's business, conduct training for employees in a timely manner and update the technology and equipment for system security in a timely manner.

Article 24 Banks shall establish a reporting system for major events in the operation of online banking business, and promptly report to the supervisory authorities major matters such as leakage of secrets, hacker intrusion, and website name change that occur in the course of online banking business.

Article 25 When a bank opens an online banking business, it shall accept an authoritative assessment institution recognized by the People's Bank of China to assess the security of its business operating system.

Chapter IV: Legal Responsibility

Article 26 In the course of supervising and inspecting banks' online banking business, the People's Bank of China discovers any of the following circumstances, it will be dealt with in accordance with the Measures for the Punishment of Financial Violations, the Measures for the Administration of the Qualifications of Senior Management Personnel of Financial Institutions and relevant laws and regulations, and if the circumstances are particularly serious, some or all of the online banking business will be forcibly suspended.

(1) Establishing online banking business without the approval of the People's Bank of China or filing for the record;

(2) In the course of starting a business, violating national laws and regulations and endangering the interests of the state and the public;

(3) Evading the supervision and inspection of the People's Bank of China in the course of opening online banking business, resulting in unfair competition;

(4) Lack of qualified management personnel and practitioners, chaotic business management, and inability to carry out risk control of the business started, resulting in significant financial losses;

(5) Insufficient system security measures, resulting in major leaks of secrets, endangering the interests of customers and the security of the banking system;

(6) Failure to report major matters to the People's Bank of China in a timely manner;

(7) Other circumstances that the People's Bank of China determines need to be handled.

Article 27 In the course of business operation, if a bank commits any violation of laws or regulations other than Article 26 of these Interim Administrative Measures, or violates other provisions of these Interim Administrative Measures, the People's Bank of China will deal with it in accordance with relevant laws, regulations and rules.

Chapter V: Supplementary Provisions

Article 28 Without the consent of the People's Bank of China, a bank shall not suspend the online banking liability business that has been examined and approved by the People's Bank of China.

Article 29 The People's Bank of China will separately formulate administrative measures for domestic banks applying for the establishment of legal entities specializing in online banking business, or for overseas institutions applying for the establishment of legal entities or branches specializing in online banking business in China.

Article 30 The access and management of financial services provided by banking institutions applying these Measures through other public information networks or private networks may be implemented with reference to these Measures, and the provisions of laws, regulations and rules shall apply to them as otherwise provided.

Article 31 The People's Bank of China shall be responsible for the interpretation of these Measures.

Article 32: These Measures shall come into force on the date of promulgation.