China to Issue Third-Party Payment Cash Reserves Regulations
Sina Tech, 10/29/12
Speaking at the 9th China International Finance Forum (CIFF) in Shanghai on October 28, Sun Hui, inspector and director of the No. 1 Division for Financial Services at the PBoC's Shanghai headquarters, revealed that formal regulations and related provisions for the management of cash reserves for third-party payment organizations will be rolled out in the near future.
Sun said that the emphasis for oversight of third-party payment services will shift from controlling organizational access to the market towards compliance risk management. Under no circumstances and in no way will any payment organizations be permitted to divert funds from clients' cash reserves.
In H1 2012, Sun said, overall payment business volumes for Shanghai's 51 payment organizations increased by 46.8% YoY, accounting for more than 60% of the nationwide total for the period.
Keywords: Sun Hui Internet third-party payment regulation People's Bank of China
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