PBOC may amend proposed caps on mobile payments
The People's Bank of China (PBOC) has announced it may amend proposed limits on mobile payments in response to the backlash from internet firms and consumers.
The People’s Bank of China (PBOC) has announced it may amend proposed limits on mobile payments in response to the backlash from internet firms and consumers.
In an interview with the official Xinhua news agency, the PBOC said it has released draft rules that were only a "working paper" submitted to various firms in the online payment business.
Various Chinese media outlets indicate the PBOC has asked for feedback on suggestions for a limit of CNY 1,000 ($161) per transfer, caps on monthly payments of as low as CNY 5,000 ($806), and CNY 10,000 ($1613) for annual aggregate cash transfers.
The PBOC said it would revise the caps if consumers believe they are not reasonable.
In addition to releasing the draft rules on mobile payment caps, the PBOC has temporarily suspended online payments using QR codes and virtual credit cards.
The central bank has also suggested that online investment products could be forced to hold reserves on funds they attract – much like banks on their deposits.
In the statement to Xinhau, the central bank said the suspension of online payments using QR codes and virtual credit cards is temporary, with the services being re-launched once related security measures are in place.
The bank reiterated that it still encourages innovation and development of internet finance, but that both online and offline financial services should be subject to the same rules and laws.