The People’s Bank of China (PBOC) is cracking down on businesses that refuse cash payments, and warned that the concept of cashless transactions should not be “over-hyped.”
In an official statement released last week PBOC said that banking institutions and non-banking payment platforms cannot compel or induce either companies or individuals to refuse cash payments, or take discriminatory measures against them.
The Chinese central bank also required that any such practices be corrected within one month.
The move arrives in response to complaints from consumers that they some businesses in China are refusing to accept cash payments, including restaurants, tourism operators and retail shops.
PBOC said in its official statement that the concept of cashless payment should not be “over-hyped,” and that refusal to accept cash payments could undermine the legal status of the renminbi.
The mobile payments sector has seen roaring growth in China over recent years, with over half a billion Chinese making mobile payments in 2017 alone.