The government has announced new rules to regulate commercial banks that cooperate with third-party payment companies, Shanghai Daily reported.
Banks and third-party payment services providers need to conduct a through check whenever a bank account is linked to an external payment system for the first time. Banks should verify customer identities through their branches, digital channels or other direct ways.
They have been given until the end of June to comply.
For digital channels, multiple authentication is required to prevent unauthorized access to third-party payment services. Banks must provide real-time notification for any changes in bank balances, the report said.
Also, banks are required to review customers’ risk tolerance and adjust transaction payment limits.
Until now, most banks only require customers to sign agreements that clarify rights and responsibilities before linking their bank accounts to external services.
Major Chinese banks began to reduce payment limits in February in advance of the new regulations. Industrial and Commercial Bank of China and China Construction Bank cut the payment limit per transaction to 5,000 yuan (US$803) from 50,000 yuan. Agricultural Bank of China and Bank of China pared their limits to 10,000 yuan from 50,000 yuan, the report said.
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