The new rules, introduced by the central bank in December 2015, require real-name registration for all non-bank payment accounts, and classifies them into three categories depending on the security levels. The size of payments allowed through such accounts ranges from USD 155 (CNY 1.000) to USD 30.493 (CNY 200.000) per year.
The aim of the policy is partly to avoid large sums of money being deposited in third-party payment accounts, which are beyond the protection of bank deposit insurance and could leave consumers vulnerable to possible risks. In addition to limiting the size of transactions, the new regulation also bans non-banking online payment platforms from opening accounts for firms engaged in financial services like lending, securities investment and insurance.
In 2015, Chinas mobile banking market passed USD 1.37 trillion (CNY 9 trillion), of which Tencents apps accounted for nearly 18%. The volume of mobile banking transactions in China is expected to exceed USD 4.26 trillion (CNY 28 trillion) in 2016. The new regulation will take effect on 1 July 2016. Real-name registration requires applicants to provide their legal name and national identification number to use services.
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