PBOC Launches Large-sum Cash Trials in Hebei, Mandates Advance Registration for 100,000 Yuan Withdrawals
The Chinese central bank has launched large-sum cash management trials in northern China’s Hebei province, as part of a two year pilot scheme that will also involve Hangzhou and Shenzhen.
The Hebei trials involve the imposition of cash management requirements starting from 100,000 yuan (approx. USD$14,148) for private accounts and 500,000 yuan for public accounts.
This means that whenever individuals make cash withdrawals of 100,000 yuan or more or institutions make cash withdrawals of 500,000 yuan or more they will need to make appointments and registration in advance.
They will also be required to clearly note the usage of the withdrawal and the sources of deposits, as well as enter this information into a large-sum cash management system.
According to an announcement from the Shijiazhuang branch of the People’s Bank of China (PBOC) the general requirement for large-sum cash management is to “protect reasonable demand, curb unreasonable demand, and suppress illegal demand.”
“In actual life, a 100,000 yuan starting point for large-sum cash management of private accounts will not markedly affect the daily economic activity of the public,” said a PBOC representative in Shijiazhuang.
On 10 June PBOC issued the “People’s Bank of China Notice on Undertaking Large-sum Cash Management Trials” (中国人民银行关于开展大额现金管理试点的通知) on the imminent launch of pilot schemes which will run for a two-year period.
Following the launch of trials in Hebei, they will be extended to Zhejiang province and Shenzhen municipality starting from 1 October.