According to the draft, the central bank plans to allocate the interest of clearing margin of non bank payment institutions into the fund in proportion, and the withdrawal proportion is determined according to the classification and rating results of Payment institutions, with a range of 9.5% to 12%, as the main source of funds for this protection fund.
Insiders believe that this is a powerful measure to ensure the payment security and promote the development of industry norms after the central bank requires the third party to pay the full deposit of customer reserve.
Prevention of third party payment for explosion
The central bank said, in recent years, with the rapid growth of non bank payment institutions (hereinafter referred to as payment institutions), the scale of customer reserves is also expanding, and the risk events of Payment institutions misappropriating customer reserves occur from time to time, which has a negative impact on the development of the industry and financial stability. In addition, when some Payment institutions are cancelled their payment business license due to major violations and poor management, due to the lack of supporting relief and protection mechanism, if there is a gap in the customers reserve, it is easy to cause group incidents and affect social stability.
Su Xiaorui, a senior researcher at the hemp bag Research Institute, told reporters that the main purpose of the new regulation is to strengthen the reserve management of Payment institutions, which has two functions: first, to slow down risks and enhance the risk resistance ability of Payment institutions; second, to protect rights and interests, especially the legitimate rights and interests of natural person customers and small and medium-sized micro merchants.
In recent years, the central banks governance of the third-party payment industry has maintained a high-pressure situation, with frequent occurrence of large fines. On October 10, the business management department of the peoples Bank of China (Beijing) disclosed on its official website that in the first half of this year, focusing on the main theme of normalization of strict supervision, it took various measures to solve the problems such as weak compliance awareness and serious violations of laws and regulations of some Payment institutions in the jurisdiction, and strengthened the investigation and punishment, warning and imposing a total of 178 million yuan on Six Payment institutions such as ICBC and Sina payment A total of 2.422 million yuan were fined and given a warning. Among them, ICBC received the largest ticket from domestic payment institutions, with a total amount of RMB 116 million. The main reasons for being punished are that they directly provide payment and settlement services for illegal fund-raising platforms, violate the management regulations of T + 0 fund settlement services, misappropriate reserves, and fail to carry out centralized deposit of reserves according to the regulations, etc., with 16 violations.
According to the interpretation of the measures for the deposit and management of customer reserves of Payment institutions, customer reserves refer to the monetary funds actually received by payment institutions to handle the payment business entrusted by customers.
In the first few years of the development of the third-party payment industry, the deposit and management of the reserve fund is disorderly and opaque. Some third-party payment institutions misappropriate the reserve fund and eat the interest of the reserve fund, which has caused many market disputes. In 2013, the central bank issued the measures for the deposit and management of customer reserves of Payment institutions, which established a series of regulatory systems, such as bank classification and hierarchical account management, closed operation and use of funds, multi-party verification and verification of reserve information, dynamic adjustment of important regulatory indicators, and cooperative supervision by the government, self regulatory organizations and commercial banks, to comprehensively standardize the deposit and collection of customer reserves , use, transfer and other custody activities. From January 2019, Payment institutions shall deposit full amount of customer reserves to the peoples Bank of China.
Wang Zhaojian, who has been paying close attention to the governance of scientific and technological data for a long time, believes that the convenience of online payment provided by non bank payment (or third-party payment) institutions is essentially to obtain zero interest or low interest, large amount and long-term capital precipitation of customers, and use it as capital to win time difference benefits in the currency or capital market. Since the basic business logic is so, it is also faced with liquidity risk as banks.
In the explanation of the above draft, the central bank said, centralized deposit of reserves can effectively curb the risk of misappropriation of funds, but it can not eliminate the false merchants and false transactions in the operation of Payment institutions, and can not completely avoid the capital risks caused by the infection of illegal trading platforms to payment institutions.
A senior person in the payment industry told reporters that it is almost an open secret that a large number of third-party payment companies in the industry provide payment channels for illegal gold, foreign exchange speculation, gambling and pornography industries. Some companies are not able to provide effective payment opportunities for the purpose of profit identification.
In 2015, Zhejiang Yishi Enterprise Management Service Co., Ltd. was cancelled the payment business license by the Central Bank of China due to a large number of major violations such as misappropriating customer reserves, forging and altering transactions and financial data, and operating payment business beyond the scope, becoming the first third-party payment company to be cancelled the payment license in China. By September 2019, according to incomplete statistics, the list of payment licenses cancelled by the central bank has increased to 34. The reasons for cancellation include: compulsory cancellation of payment business in violation of regulations, cancellation of business combination, and active cancellation of payment business.
On October 16, the person in charge of didi payment told reporters that the security fund is an important safeguard measure expected by the whole industry, and also an important sign that the supervision of the payment industry tends to be more perfect. The protection fund provides important protection for the rights and interests of financial consumers, and it can better protect the rights and interests of financial consumers in some special circumstances. The emergence of security fund and centralized deposit of reserves have formed a two pronged regulatory role, which not only effectively curbs the risk of misappropriation of provisions, but also effectively eliminates the false transactions in the daily operation of Payment institutions.
According to this draft, Payment institutions will use all customer reserves as their clearing margin. The peoples Bank of China withdraws the interest of clearing margin of Payment institutions on a quarterly basis and transfers it into the fund. When the interest of clearing margin is more than 1 billion yuan, the proportion of withdrawal shall be adjusted to ensure that the fund scale reaches 1 billion yuan after the withdrawal. The withdrawal proportion is determined according to the classification and rating results of Payment institutions. The accrual ratio is 9.5% for a class; 10% for B class; 10.5% for C class; 11% for d class; 12% for e class.
According to the measures for the management of online payment business of non bank payment institutions, the six basic evaluation indicators of class a institutions are excellent on the whole; class B institutions perform well on the whole, and some indicators are generally realized; the basic indicators of class C institutions are generally in general performance, and some indicators have problems; the potential risks of class D institutions are relatively large; and the risks of class E institutions are serious.
In other words, the top students in the payment institutions pay less, while the poor students pay more. Su Xiaorui believes that the proportion of clearing margin withdrawal is determined according to the A-E rating results of Payment institutions, which reflects the direction and thinking of classified implementation in recent years. When the total amount of funds reaches more than 1 billion yuan, the suspension of withdrawal and the upper limit of fund management fees of 2% of the average daily balance of funds are conducive to relieving the pressure of compliance costs of Payment institutions.
A person from the third-party payment industry said that it is difficult for a large number of small payment companies at the end of the industry to survive. The central banks supervision is becoming more and more strict, and the payment companies with low market share and brand have not been established have more and more narrow living space, while the supervision tickets are getting higher and higher. In the past, many non-conforming businesses are now more and more dare to take the lead.
According to the draft, under any of the following circumstances, with the approval of the peoples Bank of China, the fund can be used to repay the customers reserves: when the payment institution is cancelled its payment business license, is dissolved or declared bankrupt according to law, the assets of the payment institution or other responsible entities can not fully make up for the gap of the customers reserve; when the payment institution has major risks and adopts the Other situations that may seriously endanger social public interests and financial stability as determined by the peoples Bank of China.
However, for customers of third-party payment institutions, it is still important to note that the draft of the peoples Bank of China states that if the fund is used to cash the customers reserve, a maximum cashing limit of RMB 5000 will be imposed on a single customer. The peoples Bank of China may adjust the maximum cashing limit according to the economic development and the risk situation of the payment industry.
It is still a lesson for merchants and individual users to choose qualified and well managed third-party payment institutions to carry out business cooperation.
Up to now, China has issued 9 batches of payment business licenses for non-financial institutions, and there are more than 200 companies holding third-party payment licenses. According to the statistics of the total market share of Chinas third party payment institutions in the first quarter of 2020, Alipay and Tencent financial and UnionPay business ranked the top three in the 48.44%, 33.59% and 7.19% market share respectively. The total market share of the three reached 89.21%. Su Xiaorui believes that for the payment industry, the new regulations clarify the rights and responsibilities of Payment institutions, regulatory bodies, fund managers and other parties, as well as the operation specifications of various processes such as withdrawal, suspension of withdrawal, use approval, etc., adding a strong firewall to prevent business risks of non Bank Payment institutions, and bring positive significance to protecting the rights and interests of small and medium-sized customers and promoting the healthy and sustainable development of the industry In addition, the measures for classification management of Payment institutions also help to promote the compliance of institutions. Source: Guo Chenqi, editor in charge of the Economic Observer_ NBJ9931
Up to now, China has issued 9 batches of payment business licenses for non-financial institutions, and there are more than 200 companies holding third-party payment licenses. According to the statistics of the total market share of Chinas third party payment institutions in the first quarter of 2020, Alipay and Tencent financial and UnionPay business ranked the top three in the 48.44%, 33.59% and 7.19% market share respectively. The total market share of the three reached 89.21%.
Su Xiaorui believes that for the payment industry, the new regulations clarify the rights and responsibilities of Payment institutions, regulatory bodies, fund managers and other parties, as well as the operation specifications of various processes such as withdrawal, suspension of withdrawal, use approval, etc., adding a strong firewall to prevent business risks of non Bank Payment institutions, and bring positive significance to protecting the rights and interests of small and medium-sized customers and promoting the healthy and sustainable development of the industry In addition, the measures for classification management of Payment institutions also help to promote the compliance of institutions.