ATM inter-bank cash withdrawal and other handling fees will be reduced!

In order to implement the 2021 “Government Work Report”’s work deployment on “appropriately reducing the payment handling fees for small and micro enterprises” and the State Council’s work requirements on reducing cross-bank cash withdrawal handling fees for automatic teller machines (ATM), recently, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, The National Development and Reform Commission and the State Administration for Market Regulation jointly launched fee reduction measures to further concession to the real economy.

In recent years, all parties in the payment industry have continued to optimize the supply of payment services and actively introduced measures to reduce fees and concessions. After the outbreak of the new crown pneumonia epidemic, the People’s Bank of China encouraged and guided payment service providers to reduce fees and make profits, and rescue market players such as key regions, industries, and small and micro enterprises. Recently, on the basis of a survey of nearly 50,000 small and micro enterprises and individual industrial and commercial households, the People’s Bank of China, in conjunction with the China Banking and Insurance Regulatory Commission, the Development and Reform Commission, and the State Administration of Market Supervision, has focused on basic payment services with high demand for fee reduction and high frequency of use. 12 fee reduction measures have been proposed and will be formally implemented on September 30, 2021, covering 5 aspects including bank account services, RMB settlement, electronic banking, bank card swiping, and payment account services. In addition, the People’s Bank of China has cooperated with the China Banking and Insurance Regulatory Commission to launch long-term measures to reduce cross-bank cash withdrawal fees for automated teller machines (ATMs) to meet the needs of remote pensions and medical care, and facilitate the use of cash by the people. Among them, for fee reduction measures involving government pricing and government guidance prices, the People’s Bank of China, in conjunction with the China Banking and Insurance Regulatory Commission, the Development and Reform Commission, and the State Administration for Market Supervision, issued the “Notice on Reducing the Fees for Small and Micro Enterprises and Individual Industrial and Commercial Households” to specify specific requirements; The People’s Bank of China and the China Banking and Insurance Regulatory Commission will guide relevant industry associations to play the role of industry self-discipline mechanism to encourage and guide commercial banks, payment institutions, etc., to increase benefits for enterprises and people.

The fee reduction measures focus on small and micro enterprises, individual industrial and commercial households, while benefiting other market players and financial consumers, taking into account the reduction of fees and concessions and the sustainable development of the industry. The subjects of fee reduction involve commercial banks, payment institutions, and clearing institutions. According to preliminary calculations, after all the fee reduction measures are implemented, it is estimated that the annual fee for market players and the public will be reduced by about 24 billion yuan, of which more than 16 billion yuan will benefit small and micro enterprises and individual industrial and commercial households, which will help reduce capital circulation costs and further optimize The business environment promotes the quality and expansion of consumption and plays a positive role in boosting the high-quality development of the national economy.

In the next step, the People’s Bank of China, the China Banking Regulatory Commission, the National Development and Reform Commission, and the State Administration for Market Supervision will closely follow up on the implementation and effectiveness of fee reduction measures to ensure direct access to the grassroots and directly benefit market entities, and continue to meet economic and social needs and the development of the payment market. Promote the improvement of the quality and efficiency of payment services, and better serve the development of the real economy and the improvement of people’s livelihood.

Notice of the People’s Bank of China, the Development and Reform Commission of the China Banking and Insurance Regulatory Commission and the State Administration for Market Regulation on Reducing the Payment Fees of Small and Micro Enterprises and Individual Industrial and Commercial Households

The Shanghai Headquarters of the People’s Bank of China, branches, business management departments, provincial capitals (capitals) city central sub-branches, sub-provincial city central sub-branches; various banking and insurance regulatory bureaus; development and reform commissions of various provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning; , Autonomous regions, municipalities directly under the Central Government and Xinjiang Production and Construction Corps Market Supervision Bureau (departments, commissions); China Development Bank, policy banks, state-owned commercial banks, joint-stock commercial banks, China Postal Savings Bank; all bank card clearing institutions:

In order to implement the State Council’s deployment of reducing the payment fees of small and micro enterprises and individual industrial and commercial households, further guide the payment industry to transfer profits to the real economy, reduce the operating costs of market entities, and optimize the development environment of the real economy, we are now reducing small and micro enterprises and individual industrial and commercial households. The notice regarding the payment of the handling fee is as follows:

1. Policies and Measures to Reduce Payment Fees

(1) Lower bank account service charges. Commercial banks are encouraged to waive one account management fee (including small account management fee, excluding immovable account management fee, the same below) and annual fee, and exempt small and micro enterprises and individual industrial and commercial households from all unit settlement account management Fees and annual fees.

(2) Reduce RMB transfer and remittance handling fees. For small and micro enterprises and individual industrial and commercial households through the counter channel for a single transaction of less than 100,000 yuan (inclusive, the same below) to public and inter-bank transfer and remittance business, commercial banks shall implement a discount of 10% not higher than the current government guide price standard . If the actual charging standard is lower than the above-mentioned standard, it is encouraged to continue to implement the actual charging standard. The People’s Bank of China instructs the clearing agency to implement a 10% discount for a single transaction of less than 100,000 yuan in the small batch payment system and the online payment inter-bank clearing system at the current rate. Bank card clearing institutions are exempt from inter-bank transfer and remittance handling fees for small and micro enterprise cards and corporate settlement cards.

(3) Cancel some bill business charges. Commercial banks canceled the charge for cheque cost, loss report fee, and the handling fee, cost and loss report fee for promissory notes and bank drafts.

(4) Reduce the handling fee of bank card swiping. The bank card clearing institution coordinated with member institutions to implement a 10% discount on standard merchant debit card issuing bank service fees and network service fees based on the current government guide price, and the cap value remains unchanged. For preferential merchant issuing bank service fees, The network service fee will continue to be discounted at a discount of 78% based on the current government guide price. Acquiring institutions should simultaneously reduce the acquiring service fees for merchants, and effectively transfer the benefits of card issuing banks and bank card clearing institutions to merchants.

Among the above measures, the bill business fee reduction period is long-term, and the other fee reduction measures have a preferential period of 3 years; bill business, bank card credit card fee reduction targets are all customers (merchants), and the other measures are small and micro enterprises and individual businesses Household.

Industry associations should play the role of self-discipline mechanism to encourage and guide member units such as commercial banks and payment institutions to actively reduce the payment service charges for small and micro enterprises and individual industrial and commercial households, so as to better support the development of the real economy.

2. Work requirements

All units should attach great importance to and strengthen leadership, clarify responsibilities, coordinate and cooperate, consolidate main responsibilities, and steadily do a good job in reducing fees.

(1) Standardize the behavior of payment of fees and charges. Commercial banks and non-bank payment institutions (hereinafter referred to as payment institutions) shall conduct a comprehensive self-examination of the payment handling fees and charges, and earnestly clean up the repetitive, bundled, and non-substantial service items. Commercial banks and payment institutions must not increase payment handling fees in disguise by adopting methods such as raising first and then lowering, passing on costs, etc.

(2) Strengthen price information disclosure. Commercial banks and payment institutions shall publicize the payment handling fees in accordance with the “Price Law of the People’s Republic of China” and “Measures for the Administration of Commercial Bank Service Prices” (issued by the China Banking Regulatory Commission and the National Development and Reform Commission Order No. 1, 2014) and other laws and regulations. Regarding adjustments to the payment of commissions by small and micro enterprises and individual industrial and commercial households, it shall be publicized in a conspicuous manner on the official website, application program (APP) and business outlets. Commercial banks, payment institutions, and clearing institutions should carry out extensive publicity and do a good job in policy interpretation.

(3) Accurately define the identity of customers. Small and micro enterprises refer to small and micro enterprises that comply with the Ministry of Industry and Information Technology’s “Regulations on the Standards for the Classification of Small and Medium-sized Enterprises”. Individual industrial and commercial households refer to individual industrial and commercial households registered with the market supervision department. Commercial banks and payment institutions should scientifically define small and micro enterprise customers through refined and dynamic customer management methods. For customers who cannot be accurately defined, they shall be implemented in accordance with the principle of “should be reduced as much as possible” and in accordance with the fee reduction measures stipulated in this notice.

(4) Make all preparations. Commercial banks, payment institutions, and clearing institutions shall formulate specific business, technical implementation plans and emergency plans based on the above-mentioned fee reduction measures, and carry out system joint debugging and testing to ensure that the adjusted system goes online smoothly and operates stably.

(5) Properly handle customer complaints. Commercial banks and payment institutions shall promptly accept customer complaints and earnestly safeguard the legitimate rights and interests of customers. In the case of mischarging, overcharging, etc., the fee refund mechanism should be improved to simplify the procedures and procedures for refunding to the greatest extent.

(6) Timely summary report. Commercial banks and payment institutions shall, in accordance with the requirements of this notice, summarize and sort out the implementation of the payment fee reduction policy in a timely manner, and report to the People’s Bank of China, the China Banking Regulatory Commission, the Development and Reform Commission, and the State Administration of Market Supervision within half a year from the date of implementation of this notice.

The People’s Bank of China, the China Banking Regulatory Commission, the National Development and Reform Commission, and the State Administration of Market Supervision shall supervise and inspect the payment of fees and charges by commercial banks and payment institutions in accordance with the division of responsibilities.

This notice will come into effect on September 30, 2021. If the previous relevant regulations are inconsistent with this notice, this notice shall prevail. In case of any problems encountered during implementation, timely report to the People’s Bank of China, China Banking Regulatory Commission, Development and Reform Commission, and State Administration of Market Supervision.

Branches of the People’s Bank of China are requested to forward this notice to urban commercial banks, rural commercial banks, rural cooperative banks, rural credit cooperatives, village banks, foreign banks and payment institutions within their jurisdiction.