China imposes a withdrawal limit amid the financial crisis.

The Chinese government has launched a program where people need to pre-report while depositing or withdrawing large amounts from the bank.

China had imposed an order to keep large transactions in check amid heightened concerns over its financial system due to bad debt in the wake of the COVID-19 outbreak. This plan will require businesses to provide information on transactions exceeding 500,000 yuan (US$71,000), and for individuals, the threshold spans from 100,000 yuan to 300,000 yuan depending on the region. While the statement did not say banks can reject a transaction exceeding the amount, lenders will need to submit reports while making transactions. They should follow up on customers that come from high-risk sectors or those who make frequent transactions. The People’s Bank of China (PBOC) kicked off a pilot plan in Hebei Province, in July, that would require retail and business clients to pre-report any large withdrawals or deposits. The two-year program will be expanded to Zhejiang and Shenzhen in October, encompassing more than 70 million people.

Reference links

South China Morning Post

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Bloomberg

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Shenzhen Daily

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