The People's Bank of China issued the "Implementation Rules of the Regulations on the Supervision and Administration of Non-bank Payment Institutions" to strengthen the legal supervision of Alipay, WeChat Pay and other institutions

This site reported on July 26 that the People's Bank of China issued the "Implementation Rules for the Regulations on the Supervision and Administration of Non-Bank Payment Institutions" (hereinafter referred to as the "Implementation Rules").
The "Implementation Rules" will come into effect from the date of issuance. The "Measures for the Administration of Payment Services of Non-Financial Institutions" (People's Bank of China Order [2010] No. 2) and the "Implementation Rules for the Measures for the Administration of Payment Services of Non-Financial Institutions" (People's Bank of China Announcement [2010] No. 17) are abolished at the same time.
The "Implementation Rules" have six chapters and 77 articles, including general provisions, establishment, change and termination, payment business rules, supervision and management, legal responsibilities and supplementary provisions, aiming to refine the provisions of the "Regulations" and standardize the healthy development of payment institutions Provide strong institutional guarantees. The main contents are:
First, clarify administrative licensing requirements. In accordance with the list of administrative licensing items set up in the "Regulations", the application materials, licensing conditions and approval procedures for the establishment, change and termination of payment institutions shall be detailed to continue to improve the transparency of regulatory rules and optimize the business environment.
The second is to refine the payment business rules. Clarify the specific classification methods of payment business and the connection between old and new business licenses to achieve a smooth transition. Provide user rights protection mechanisms and charging standard adjustment requirements to fully protect users’ rights to know and choose.
The third is to refine regulatory responsibilities and legal responsibilities. Clarify the applicable procedural requirements for major matters and risk event reporting, law enforcement inspections, etc. Strengthen the penetrating management of equity of payment institutions and prevent non-major shareholders or beneficial owners from circumventing supervision through concerted action arrangements and other methods. In addition, it also stipulates the punitive powers and measures of the People's Bank of China and its branches.
Fourth is to provide for transitional arrangements. It is clarified that established payment institutions should meet the relevant requirements for establishment conditions, the ratio of net assets to the average daily balance of reserves, etc. before the end of the transition period. The transition period is from the implementation date of the "Implementation Rules" to the expiration date of the payment business license. If it is less than 12 months, it will be counted as 12 months.
In the next step, the People's Bank of China will continue to implement the "Regulations" and "Implementation Rules", urge payment institutions to serve the real economy, adhere to the bottom line of compliance, adhere to integrity and innovation, and promote the health and sustainability of the non-bank payment industry develop.
The official emphasized: During the drafting process, the following principles were mainly grasped:
First, adhere to administration according to law. Refine the requirements for administrative licensing matters in the Regulations, and promote administrative licensing work with sufficient basis, standardized procedures, and openness and transparency. Optimize the approval process for change matters and improve approval efficiency.
The second is to persist in seeking progress while maintaining stability. Maintain the continuity of regulatory work and the consistency of macro policy orientations, clarify the connection methods of new and old payment businesses, and set up a relatively sufficient transition period to ensure a smooth transition.
The third is to adhere to both standards and development. Coordinate development and security, combine with market reality, reasonably and moderately increase registered capital and net asset requirements, enhance the risk defense capabilities of payment institutions, guide them to return to their roots, and improve the quality and level of serving the real economy.
According to the "Measures for the Administration of Payment Services of Non-Financial Institutions" (People's Bank of China Order [2010] No. 2), the payment institution payment business license is valid for 5 years. Since each payment institution was established at different times, the payment business license expiration date is also different. In order to protect the rights of the administrative license counterparty, the "Implementation Rules" set the transition period from the implementation date of the "Implementation Rules" to the expiration date of the payment business license validity period. Payment institutions that have been established before the implementation of the "Regulations" and plan to continue to engage in some or all of the approved payment businesses shall apply to the People's Bank of China for the replacement of a long-term valid payment business license. In addition, individual payment institutions need a certain period of time to adjust to meet the relevant requirements for net assets. To ensure a smooth transition, the "Implementation Rules" also set a transition period of the same length for the ratio of net assets to the daily average balance of reserves.
Considering that the payment business licenses of 17 payment institutions will expire on July 9, 2024 and March 25, 2025 respectively, which is close to the implementation date of the "Implementation Rules", in order to ensure that these two batches of payment institutions have sufficient In preparation time, the Implementing Rules relax the transition period to 12 months.
In the "Implementation Rules", the official clearly stipulates that applying for the establishment of a payment institution requires the submission of materials on major shareholders and actual controllers, the company's equity structure diagram and control framework diagram, actual control rights and control relationship explanatory materials, and the official website of the People's Bank of China has The right to disclose the equity structure and shareholder details of the payment institution, shareholding ratio, and the list of actual controllers.
In addition, the company's net assets are calculated based on the minimum daily average balance of 5% of the company's reserves, thereby avoiding the bottom-line leverage behavior of some financial institutions and preventing shareholders from using limited liability to escape unlimited debt.

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