CHI GVT Non-Bank Payment Institution

On Nov. 24, CHI GVT approved regulations on payment supervision.

  • CHI GVT held a State Council executive meeting, and reviewed and approved the Regulations on the supervision and administration of non-bank payment institutions.
  • Document dated Nov. 24, 2023, received from CHI DP Nov. 27, summarized Nov. 29.
  • Regulations
  • CHI GVT said that the regulations strengthen full-chain and full-cycle supervision.
  • Control access of payment institutions; prevent risks such as capital misappropriation, data leakage; prevent the use of payment platforms to engage in illegal fund-raising.
  • Dec. 9, 2023 Regulations Gazetted
  • On Dec. 9, 2023, CHI PRL gazetted the regulations to the regulation database.
  • Document dated Dec. 9, 2023, was added on Dec. 28, 2023 due to editorial backfill.
  • Dec. 17, 2023 Regulation Announced
  • On Dec. 17, 2023, CHI GVT, CHI CB issued announcement on launch of regulations.
  • Aim to provide legal framework for supervision and management of these institutions.
  • Defines non-bank payment institutions; states they must obtain approval from CHI CB.
  • They are limited to providing small-value and convenient payment services and cannot engage in other approved businesses or clearing activities without authorization.
  • Payment business is categorized into account management and payment transaction processing; non-bank payment institutions must have secure, traceable systems.
  • The regulations require fair terms in payment service agreements, safeguarding user funds and information, and preventing third-party outsourcing of core services.
  • Regulations cover supervision responsibilities and legal consequences for violations.
  • The regulations are effective from May 1, 2024.
  • Dec. 28, 2023 Editorial Update
  • On Dec. 28, 2023, Reg-Track made an editorial update to the summary above, adding a new sub-heading dated Dec. 9, 2023 relating to document published by CHI PRL.
  • Dec. 28, 2023 Policy Briefing
  • On Dec. 28, 2023, CHI CB attended a policy briefing introducing the regulations.
  • Deputy Governor discussed significance of regulations in promoting payment industry's high-quality development, mentioned key provisions of regulations and implications.
  • Aim to ensure lawful and compliant operations of payment institutions, focus on small transactions and convenience, promote healthy competition and vitality in the industry.
  • CHI CB is authorized to enforce these regulations, treating all payment institutions equally and ensuring high-quality services for businesses and the public.
  • Dec. 29, 2023 Comment from Scholars
  • On Dec. 29, 2023, CHI CB published comment from scholars re the regulations.
  • Huang Yiping, vice dean of the National School of Development at Peking University, sees these regulations as positive step in ensuring sector's healthy development, also highlights the ongoing challenge of balancing efficiency and stability in industry.
  • Yang Tao, vice director of the National Finance and Development Laboratory at the Chinese Academy of Social Sciences, highlights the evolving regulatory framework.
  • He underscores importance of maintaining security, preventing risks in payment sector while acknowledging need for ongoing refinement, implementation of the regulations.
  • Professor Wu Changhai from China University of Political Science and Law discusses the six key highlights of the regulations in protecting users' legal rights and interests.
  • These highlights include elevating the legal authority of the regulations, outlining principles and objectives, providing specific guidelines for user rights protection.
  • As well as ensuring comprehensive user risk management, enforcing stricter penalties for unlawful activities, and aligning with existing laws and regulations.

Entity Types Corp; MSB
Reference PR 12/29/2023; PR 12/28/2023; RN State Council No. 768, PR 12/17/2023; OG 12/9/2023; PR 11/24/2023; NBPI Reg;
Functions Compliance; Legal; Operations; Outsourcing; Privacy; Risk; Technology
Countries China
Products Clearing; Corporate; Payments
Regions AP
Rule Type Final
Rule Date 11/24/2023
Effective Date 5/1/2024
Rule Id 192613
Linked to N/A
Reg. Last Update 12/29/2023
Report Section International

Last substantive update on 01/03/2024