Large deposits and withdrawals in many places require registration! Which specific areas? When to execute? Attach details

The latest news is that large deposits and withdrawals in many places require registration. Which specific areas? Why register? When to execute? Does it affect the public's freedom of access?

Large deposits and withdrawals in many places require registration

Recently, the central bank decided to pilot large-value cash management in Hebei Province from July 1, 2020, and in Zhejiang Province and Shenzhen from October 1. The pilot period is 2 years.

What is the reason for registration?

In recent years, the volume of large cash transactions has continued to grow, and more and more large cash transactions are concentrated in specific areas, specific groups of people, and specific periods.

A survey conducted by the central bank in 2017 found that there were cases where a single cash withdrawal exceeded 100 million yuan. This situation is unreasonable in today's environment where bank card payment, bank transfer and other methods are very convenient. The central bank bluntly stated that my country urgently needs to strengthen the management of large amounts of cash, ensure reasonable demand, curb unreasonable demand, and curb the use of large amounts of cash for illegal and criminal activities.

Why were these three places chosen for the pilot project?

Hebei, Shenzhen and Zhejiang are the main representative provinces. Among them, Hebei took the lead and started the pilot project first. The reason is that Hebei Province's banking and financial institutions have a good foundation in large-value cash business management, so it was selected as the first to start the pilot.

Zhejiang Province and Shenzhen City are both key areas for cash injection in the country. Some industries in Zhejiang Province have a prominent situation of large-scale cash usage, and personal accounts have a prominent situation of large-scale cash usage. Cross-border cash flows in RMB between Shenzhen and Hong Kong are common.

Why are the management starting amounts different?

Currently, the starting point for pilot public account management in Hebei Province, Zhejiang Province and Shenzhen City is set at 500,000 yuan, and the starting points for private account management are 100,000 yuan, 300,000 yuan and 200,000 yuan respectively. Why are there differences in the starting amounts?

The central bank said that it is necessary to protect the reasonable and legitimate cash needs of enterprises, individual businesses and the general public, and to strengthen monitoring of cash transactions of the "critical few" that may involve tax evasion, regulatory avoidance and unreasonable occupation of social resources.

That is to strike a balance. Targeted monitoring of unconventional large-scale cash usage is necessary, while at the same time avoiding excessive workload for banking financial institutions and minimizing the overall impact on customers. According to the current starting amount standard, the number of large-value cash deposit and withdrawal transactions in each pilot area accounts for about 1% of the total number of transactions.

Does it affect the public's freedom of access?

The central bank said: No impact.

Under the premise of legality and rationality, the public's freedom to deposit and withdraw money is fully protected and will not significantly affect the daily economic activities of the public.

First, there are many payment methods in my country, such as cash, bills, transfers, online, and mobile payments, and they are widely used. Diversified payment methods can meet the daily production and life needs of the vast majority of the public.

Second, the starting point for large cash management has been set after research and demonstration, and is higher than the daily cash usage of the vast majority of the public.

Third, as long as customers fulfill their registration obligations in accordance with regulations, there are no restrictions on large deposits and withdrawals.