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Measures on Regulation of Payment Services of Non-financial Institution (PBoC Circular 2) - 非金融机构支付服务管理办法
July 28, 2010
Released June 14, 2010 and effective on September 1, 2010
On June 21, 2010, the People's Bank of China (“PBoC”) promulgated the Administrative Measures on Payment Service of Non-financial Institution (“PBoC Circular 2”), which introduces a nationally unified administrative permit, the payment services license. The Regulations have no grandfathering provisions so any existing provider already supplying payment services must apply for a payment services license within one year after PBoC Circular 2 takes effect on September 1, 2010, i.e. by August 31, 2011.
The payment service of non-financial institutions as defined in this circular refers to that the non-financial institutions provide the following transfer services of monetary capital as an intermediary between payees and payers:
· Online payment;
· Issuance and acceptance of prepaid card;
· Bank card acceptance; and
· Other payment services as specified by the People's Bank of China.
If a payment service provider intends to apply for a national-wide payment services license, its registered capital shall be no less than RMB100 million. If it intends to engage in payment business within a province, its registered capital shall be no less than RMB30 million. The registered capital shall be paid-in monetary capital. In addition, a major investor of the payment service provider (an investor who holds 10% equity interests of or actually controls the payment service provider will be regarded as a major investor) should have provided payment services for more than two years and made profits for more than two years consecutively.
Please note that PBoC Circular 2 does not apply to foreign invested payment services providers. PBoC will issue separate regulations in this regard.