Administrative Measures for the RMB Bank Settlement Accounts

Administrative Measures for the RMB Bank Settlement Accounts

Order of the People's Bank of China [2003] No. 5

April 10, 2003

In order to regulate the opening and use of RMB bank settlement accounts and to maintain the stability of the economic and financial order, the People's Bank of China has formulated the Administrative Measures for the RMB Bank Settlement Accounts, which were adopted at the 34th executive meeting of the bank presidents on August 21, 2002. These Measures are hereby promulgated and shall come into force on September 1, 2003.

President: Zhou Xiaochuang

Attached: Administrative Measures for the RMB Bank Settlement Accounts

Chapter 1 General Provisions
　
Article 1 The Measures are formulated in accordance with the Law of the People's Republic of China on the People's Bank of China, the Commercial Banking Law of the People's Republic of China and other laws and regulations in order to regulate the opening and use of RMB bank settlement accounts (hereinafter referred to as "bank settlement accounts"), to strengthen the administration of bank settlement accounts and to maintain the stability of the economic and financial order.
　
Article 2 These Measures shall apply to the bank settlement accounts opened by depositors at banks within the territory of China.
For the purposes of these Measures, the term "depositors" shall refer to the authorities, organizations, departments, enterprises, institutions, and other organizations (hereinafter collectively referred to as entities), and individually-owned industrial and commercial businesses and natural persons.
For the purposes of these Measures, the term "banks" shall refer to policy banks, commercial banks (including wholly foreign-owned banks, Sino-foreign equity joint venture banks and branches of foreign banks), urban credit cooperatives and rural credit cooperatives within China that have been approved by the People's Bank of China to engage in payment and settlement businesses.
For the purposes of these Measures, the term "settlement accounts" shall refer to current RMB deposit accounts opened by banks for the depositors to handle the payment and settlement of funds.
　
Article 3 Bank settlement accounts are divided into entity bank settlement accounts and individual bank settlement accounts according to the depositors.
1. The bank settlement account opened by a depositor in the name of an entity is an entity bank settlement account. Entity bank settlement accounts are divided into basic deposit accounts, general deposit accounts, special deposit accounts and temporary deposit accounts according to the uses of such accounts.
The bank settlement account opened by an individually-owned industrial and commercial business on the strength of the business license and in the name of the business or the operator shall be subject to the administration of bank entity settlement accounts.
2. The bank settlement account opened by a depositor on the strength of the individual identity card and in the name of a natural person shall be an individual bank settlement account.
The account opened by a postal savings agency for bank card services shall be subject to the administration of individual bank settlement accounts.
　
Article 4 The depositor of an entity bank settlement account may only open one basic deposit account with the bank.
　
Article 5 A depositor shall open the bank settlement account at the place of registration or domicile, with the exception of the bank settlement accounts opened at other places (other provinces, cities and counties) as prescribed by these Measures.
　
Article 6 The opening of basic settlement accounts and temporary deposit accounts by the depositors and the opening of special deposit accounts by budget entities shall be subject to the verification and approval system, and the opening bank shall issue the opening registration certificate upon verification and approval of the People's Bank of China, with the exception of the opening of temporary deposit accounts by the depositors for registration of capital verification.
　
Article 7 A depositor may independently choose to open the bank settlement account with any bank. Unless otherwise provided by State laws, administrative regulations and provisions of the State Council, no entity or individual may force the depositor to open the bank settlement account with any designated bank.
　
Article 8 The opening and use of bank settlement accounts shall comply with laws and administrative regulations, and the bank settlement accounts may not be used to evade taxes, avoid debts, illegally procure cash or in any other illegal activities.
　
Article 9 A bank shall maintain the confidentiality of information of the bank settlement accounts of depositors. With respect to the deposits and relevant information of the entity bank settlement accounts, the bank shall have the right to refuse the enquiry by any entity or individual, unless otherwise provided by state laws and administrative regulations. With respect to the deposits and relevant information of the individual bank settlement accounts, the bank shall have the right to refuse the enquiry by any entity or individual unless otherwise provided by state laws.
　
Article 10 The People's Bank of China is the regulatory department of bank settlement accounts.

Chapter 2 Opening of Bank Settlement Accounts
　
Article 11 The basic deposit account is the bank settlement account opened by a depositor for handling the daily transfer and settlement and the receipt and payment of cash. The following depositors may apply for opening a basic deposit account:
1. Enterprise legal persons;
2. Non-legal person enterprises;
3. Authorities and institutions;
4. Military troops, armed police forces, as well as the military units (sub-units) at the regiment level or above carrying out separate duties;
5. Social organizations;
6. Privately-run non-enterprise organizations;
7. Permanent agencies at other places;
8. Foreign agencies stationed in China;
9. Individually-owned industrial and commercial businesses;
10. Residents' committees, villagers' committees and community committees;
11. Affiliated agencies with independent accounting set up by the entities; and
12. Other organizations.
　
Article 12 A general deposit account is a bank settlement account opened by a depositor with the bank business organization other than the basic deposit account opening bank for the purposes of loans or handling other settlement.
　
Article 13 A special deposit account is a bank settlement account opened by a depositor for special management and use of its funds of specific purposes in accordance with laws, administrative regulations and rules. A depositor may apply for opening a special deposit account for the management and use of the following funds:
1. Fund for infrastructure construction;
2. Fund for renovation and restructuring;
3. Extra budgetary fund;
4. Fund for purchase of food, cotton and oil;
5. Fund for securities transaction settlement;
6. Security deposit for futures transaction;
7. Trust fund;
8. Inter-institution fund deposited by financial institutions;
9. Policy real estate development fund;
10. Reserve fund for bank cards of the entities;
11. Housing fund;
12. Social security fund;
13. Consolidated income and business expenditure;
14. Fund of the organizations set up in the entities by the party, league and trade union; and
15. Other funds subject to special management and use.
Consolidated income and business expenditure shall refer to the income and expenditure of the affiliated non-independent-accounting entities or agencies of the depositors of basic deposit accounts.
The special deposit account opened for consolidated income and business expenditure shall be in the name of the entity to which the agency is affiliated.
　
Article 14 The temporary deposit account is a bank settlement account opened by the depositor for temporary needs within a prescribed time limit. In any of the following circumstances, a depositor may apply for opening a temporary deposit account for: 1. Establishment of a temporary agency; 2. Temporary business activities at other places; or 3. Registration of capital verification.
　
Article 15 The individual bank settlement account is a deposit account opened by a natural person to handle the payment and settlement business for investment, consumption and settlement etc. In any of the following circumstances, the natural person may apply for opening an individual bank settlement account:
1. Using credit instruments such as checks and credit cards etc; or
2. Handling settlement businesses such as exchange, fixed-term debit, fixed-term credit, and debit cards etc.
A natural person may, according to its needs, apply for opening an individual bank settlement account, or select from the saving accounts already opened and apply to the opening bank for recognition as the individual bank settlement account.
　
Article 16 In any of the following circumstances, a depositor may open the relevant bank settlement account at other places:
1. The depositor needs to open the basic deposit account where the place of registration of the business license and the place of business do not fall within the same administration area (in different provinces, cities or counties);
2.
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