Circular of the People's Bank of China on Strengthening the Management of RMB Interbank Settlement Accounts of Banking Financial Institutions
Circular of the People's Bank of China on Strengthening the Management of RMB Interbank Settlement Accounts of Banking Financial Institutions
Circular of the People's Bank of China on Strengthening the Management of RMB Interbank Settlement Accounts of Banking Financial Institutions
Yin Fa [2014] No. 178
June 24, 2014
The Shanghai Headquarters of the People's Bank of China (“PBC”), all branches and business management departments of the PBC, and all central sub-branches of the PBC in the capital cities of provinces (or autonomous regions) and of Shenzhen Municipality; China Development Bank; all policy banks, state-owned commercial banks, and joint-stock commercial banks; and Postal Savings Bank of China，
To strengthen the administration of RMB interbank settlement accounts of banking financial institutions (hereinafter referred to as “interbank settlement accounts”) and to effectively prevent financial risks, the relevant matters are hereby announced as follows:
I. Strengthening the administration of the opening of interbank settlement accounts
1. For the purpose of this Circular, the term “interbank settlement accounts” means the RMB bank deposit accounts opened by banking financial institutions (hereinafter referred to as “banks”) for other banks in China for funds transfers with the banks or third parties.
Interbank settlement accounts are classified into those of the settlement category and those of the investment and financing category according to their uses. Interbank settlement accounts of the settlement category are accounts used for such payment and settlement businesses as cash remittance agency and payment and settlement agency. Interbank settlement accounts of the investment and financing category are accounts used for such financing and investment businesses as interbank deposit (excluding settlement deposit), interbank borrowing, reverse repurchase (repurchase), and interbank investment.
2. Interbank settlement accounts shall be managed in strict accordance with the Administrative Measures for RMB Bank Settlement Accounts (Order of the People's Bank of China No. 5 [2003]), and other rules on bank settlement accounts. Except for basic deposit accounts, all accounts shall be treated as special deposit accounts when they are opened. Dedicated deposit accounts in different places may be opened if needed.
3. The branch offices of deposit banks shall obtain written internal authorization from the first-level legal persons of the deposit banks for each of the interbank settlement accounts opened with opening banks (other banks). The first-level legal person of a deposit bank shall make authorization by issuing an official document specifying the opening bank with which a branch office opens an interbank settlement account, the account name, the uses of the account, and the handling person, among others. If the deposit bank is a national bank, and it is difficult to make direct authorization due to such special circumstances as having a relatively large number of branch offices, it may authorize the first-level branches to make authorization, provided that such branches shall report the relevant information to the first-level legal person before interbank settlement accounts are opened.
4. Generally, interbank settlement accounts of the investment and financing category shall be opened with the first-level legal person and first-level branches of a deposit bank. Where a second-level branch really needs to open such an account, authorization shall be made by the first-level legal person instead of a first-level branch. A deposit bank's branch offices at or below the sub-branch level may not open interbank settlement accounts of the investment and financing category or open interbank settlement accounts in different places.
Only opening banks' business establishments at or above the second-level branch level may open interbank settlement accounts of the investment and financing category for deposit banks.
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Yin Fa [2014] No. 178
June 24, 2014
The Shanghai Headquarters of the People's Bank of China (“PBC”), all branches and business management departments of the PBC, and all central sub-branches of the PBC in the capital cities of provinces (or autonomous regions) and of Shenzhen Municipality; China Development Bank; all policy banks, state-owned commercial banks, and joint-stock commercial banks; and Postal Savings Bank of China，
To strengthen the administration of RMB interbank settlement accounts of banking financial institutions (hereinafter referred to as “interbank settlement accounts”) and to effectively prevent financial risks, the relevant matters are hereby announced as follows:
I. Strengthening the administration of the opening of interbank settlement accounts
1. For the purpose of this Circular, the term “interbank settlement accounts” means the RMB bank deposit accounts opened by banking financial institutions (hereinafter referred to as “banks”) for other banks in China for funds transfers with the banks or third parties.
Interbank settlement accounts are classified into those of the settlement category and those of the investment and financing category according to their uses. Interbank settlement accounts of the settlement category are accounts used for such payment and settlement businesses as cash remittance agency and payment and settlement agency. Interbank settlement accounts of the investment and financing category are accounts used for such financing and investment businesses as interbank deposit (excluding settlement deposit), interbank borrowing, reverse repurchase (repurchase), and interbank investment.
2. Interbank settlement accounts shall be managed in strict accordance with the Administrative Measures for RMB Bank Settlement Accounts (Order of the People's Bank of China No. 5 [2003]), and other rules on bank settlement accounts. Except for basic deposit accounts, all accounts shall be treated as special deposit accounts when they are opened. Dedicated deposit accounts in different places may be opened if needed.
3. The branch offices of deposit banks shall obtain written internal authorization from the first-level legal persons of the deposit banks for each of the interbank settlement accounts opened with opening banks (other banks). The first-level legal person of a deposit bank shall make authorization by issuing an official document specifying the opening bank with which a branch office opens an interbank settlement account, the account name, the uses of the account, and the handling person, among others. If the deposit bank is a national bank, and it is difficult to make direct authorization due to such special circumstances as having a relatively large number of branch offices, it may authorize the first-level branches to make authorization, provided that such branches shall report the relevant information to the first-level legal person before interbank settlement accounts are opened.
4. Generally, interbank settlement accounts of the investment and financing category shall be opened with the first-level legal person and first-level branches of a deposit bank. Where a second-level branch really needs to open such an account, authorization shall be made by the first-level legal person instead of a first-level branch. A deposit bank's branch offices at or below the sub-branch level may not open interbank settlement accounts of the investment and financing category or open interbank settlement accounts in different places.
Only opening banks' business establishments at or above the second-level branch level may open interbank settlement accounts of the investment and financing category for deposit banks.
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