Interim Regulations on Cash Management
Order of the State Council No. 12
September 8, 1988
The Interim Regulations on Cash Management adopted at the 18th executive meeting of the State Council on August16, 1988 is hereby promulgated and shall go into effect as of October 1, 1988.
Primer Minister Li Peng
Interim Regulations on Cash Management
Chapter I General Provisions
Article 1 These Regulations are formulated with purpose to improve the cash control, promote the commodity production and circulation, as well as strengthen the supervision on social economic activities.
Article 2 Any governmental agent, association, army enterprises, public service institute or other units (herein after referred to as the "Account-Holding Unit") that open an account in the bank or other financial institutions (herein after referred to as the "Account-Opening Bank") shall receive, pay and make use of cash in accordance with these Regulations as well as accept the supervision of the Account-Opening Bank.
The State encourages Account-Holding Units and individuals to make settlement by transfer of account so as to reduce the use of cash in the economic activities.
Article 3 The economic communications between Account-Holding Units shall be settled with transfer of account through Account-Opening Banks, unless the use of cash is in a certain scope prescribed by these Regulations.
Article 4 The People's Bank at various levels shall undertake their duties as competent financial management institutions, supervising and auditing the cash management of Account-Opening Banks.
The Account-Opening Banks shall, according to these Regulations and regulations of the People's Bank of China, take charge of the implementation of cash management and regulate the receipt, payment as well as use of cash by Account-Opening Banks.
Chapter II Management and Supervision of Cash
Article 5 An Account-Holding Unit may make use of cash within the following scope:
1. salary and allowance;
2. individual labor payment;
3. various bonus awarded to individuals for achievements in the field of science and technology, culture and art or sports in accordance with regulations prescribed by the State;
4.
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