New Policy Requires Appointments for High Value Withdrawals
06 Jul 2020
In order to strengthen the management of large amounts of cash and curb the use of large amounts of cash for illegal crimes, the People's Bank of China issued a relevant notice in November 2019, intending to implement management of large amounts of cash in Hebei Province, Zhejiang Province, and Shenzhen, and openly solicit feedback from the public.
A few days ago, with the full approval of the State Council, the People's Bank of China officially launched the pilot work to conduct large-scale cash management in Hebei Province from July 1st, and in Zhejiang Province and Shenzhen from October 1st.
Effective July 1, individuals in Hebei Province needing to withdraw more than 100,000 yuan from the bank need to register and make an appointment to do so.
The pilot project will last for two years and will be implemented in different regions in phases.
Xinhua News Agency reporter Li Xinshe
The regions were chosen because of their strong banking foundation as well as other key factors. Zhejiang Province and Shenzhen are both key areas for national cash investment. Additionally, some industries and individual accounts in Zhejiang Province are using large amounts of cash, and the cross-border flow of RMB currency notes between Shenzhen and Hong Kong is widespread.
According to sources from the People's Bank of China, the registration requirement serves multiple purposes:
- to understand the sources and uses of cash withdrawals;
- to standardize and guide the public on the use cash and diversifying payment methods;
- to save social resources; and
- to effectively prevent the risk of large cash circulation and use.
Minimal Impact on Most People's Daily Lives
Cash usage by the majority of the public was taken into account in determining the withdrawal amounts needing to be reached in order to hit the threshold for the new registration requirement, to limit the impact on the economic activities of the people.
The starting point for the management of business accounts is 500,000 yuan, and the starting point for the management of individual accounts is 100,000 yuan in Hebei Province, 300,000 yuan in Zhejiang Province, and 200,000 yuan in Shenzhen.
Under the premise of lawfulness and reasonableness, the public's freedom to deposit and withdraw money is fully protected. As long as the public legally fulfills their registration obligations in accordance with regulations, large amounts of cash access are not restricted.
The pilot areas will gradually establish and standardize systems for large cash withdrawal appointments, large cash deposit and withdrawal registration, large cash analysis reports, and supervision and inspection.
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