Feedback sought on payment proposals
Source: Xinhua |
November 5, 2011, Saturday
|
Print Edition
Print Edition
THE People's Bank of China yesterday outlined how the central bank plans to regulate non-financial organizations engaged in payment and settlement businesses.
As China's online shopping industry booms, the central bank has been drafting regulations to ensure healthy development of third-party payment and settlements.
The PBOC will seek public feedback on the proposals until November 12 before implementing them.
China had 485 million Internet users by the end of June, among whom some 150 million were active online shoppers, according to China Internet Networks Information Center. Online business-to-consumer and business-to-business transactions reached 4.5 trillion yuan (US$709 billion) last year.
Under the proposed regulations, each payment institution can choose only one commercial bank for custody of provisions paid to sellers by clients for goods or services.
To be a custodian, a commercial bank must either first acquire a custody license for securities investment funds, or have assets of more than 200 billion yuan while meeting the supervisory requirements on capital adequacy ratio, leverage rate and liquidity.
Payment institutions must manage clients' provisions and their own capital in separate accounts.
Custodians must deposit customers' provisions in full and use them only for the payment of business authorized by customers.
They can keep customers' provisions for no longer than three months if stored in accounts other than demand deposits.
As China's online shopping industry booms, the central bank has been drafting regulations to ensure healthy development of third-party payment and settlements.
The PBOC will seek public feedback on the proposals until November 12 before implementing them.
China had 485 million Internet users by the end of June, among whom some 150 million were active online shoppers, according to China Internet Networks Information Center. Online business-to-consumer and business-to-business transactions reached 4.5 trillion yuan (US$709 billion) last year.
Under the proposed regulations, each payment institution can choose only one commercial bank for custody of provisions paid to sellers by clients for goods or services.
To be a custodian, a commercial bank must either first acquire a custody license for securities investment funds, or have assets of more than 200 billion yuan while meeting the supervisory requirements on capital adequacy ratio, leverage rate and liquidity.
Payment institutions must manage clients' provisions and their own capital in separate accounts.
Custodians must deposit customers' provisions in full and use them only for the payment of business authorized by customers.
They can keep customers' provisions for no longer than three months if stored in accounts other than demand deposits.
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