Regulations on Deposit Management Issued by State Council China

Regulations on Deposit Management Issued by State Council China on Dec. 12, 2009. Include General Provisions, Thrift institutions, Deposit Business and Savings Management. For the purpose of developing deposit, protecting depositors’ legal interests, and strengthening savings management. Approved by the People’s Bank of China or its branches.

Regulations on Deposit Management Issued by State Council China

Chapter 1 General Provisions

Article 1 The regulations are formulated for the purpose of developing deposit, protecting depositors’ legal interests, and strengthening savings management.

Article 2 Thrift institutions and individuals who enter into deposit in China shall abide by these regulations.

Article 3 The term “deposit” in these regulations refers to the activities in which individuals deposit RMB or foreign currency into thrift institutions, and the thrift institutions provide the bankbook or certificate as voucher, and the individuals draw the principal and interest based on the bankbook or certificate, and the institutions pay the principal and interest by regulations. No units or individuals are allowed to transfer public money to savings in personal name.

Article 4 The term “thrift institutions”, as mentioned in the regulations, refers to all banks, credit corporations and postal enterprises in which transact the business of deposit, approved by the People’s Bank of China or its branches.

Article 5 the nation protect the ownership and other legal interest of individual legal savings, encourage individuals to join the deposit. In the transaction of deposit, the thrift institutions shall abide by the principle of “ voluntary deposit, free drawing, saving with interest, keeping secret for depositor”.

Article 6 The People’s Bank of China is responsible for the control of the state’s deposit. The People’s Bank of China and its branches is responsible for the approval of thrift institutions and deposit businesses, coordinating and arbitrating the disputes of deposit business among the thrift institutions, supervising and auditing the business of thrift institutions, and correcting and punishing the actions which violate the national deposit laws, statutes, and policies.

Article 7 Approved by the State Council, the People’s Bank of China can take proper measures to stabilize the deposit and protect the interests of depositor.

Article 8 Apart from thrift institutions, no units and individuals are allowed to transact deposit businesses.

Chapter 2 Thrift institutions

Article 9 the establishment of thrift institutions shall abide by following the uniform planning, facilitating people, emphasizing actual effect and ensuring the security.

Article 10 The establishment of thrift institutions shall be approved by the People’s Bank of China or its branches and apply for Permit of Operating Financial Business, apart from those which have prescribed by otherwise national laws or administrative regulations.
　
Article 11 the establishment of thrift institutions must possess the following conditions: (1) having institution name, institution structure and business site (2) no less than four operators who are familiar with deposit business (3) having necessary security facilities.

Article 12 Approved by the local branches of the People’s Bank of China, thrift institutions can establish deposit agency. The People’s Bank of China prescribes the regulations on control of deposit agency.

Article 13 Thrift institutions shall be operated in regulated hours, and shall not stop operation or shorten operation hours without authorization.

Article 14 Thrift institutions shall ensure the payment of deposit principal and interests, shall not violate relevant regulations and refuse to pay deposited principal and interests.

Article 15 Thrift institutions shall not use illegitimate artifice to absorb deposit.

Chapter 3 Deposit Business

Article 16 Thrift institutions can transact the following RMB deposit business: (1) Current deposit (2)Time deposit of lump deposit & drawing (3) Time deposit of installment fixed deposit (4) Renewal & interest payment deposit (5) time savings-big money and small drawing (6) Time-demand deposit (7) Time savings-overseas Chinese (RMB) of lump deposit & drawing
(8) Other kinds of deposit by approval of the People’s Bank of China.

Article 17 Approved by Foreign Currency Administration Department, thrift institutions can transact the following foreign currency deposit business:（1）Current deposit (2) Time deposit of lump deposit & drawing (3) Other kinds of foreign currency deposit by approval of the People’s Bank of China. And during the operation of foreign currency business, the principal and interests of savings shall be paid in foreign currency.

Article 18 While transact the time deposit, thrift institutions can transact automatic maturity transfer service simultaneously for the depositor according to depositor’ intention.
　
Article 19 According to relevant policies of national reform on housing and actual needs, thrift institutions can transact personal housing deposit business by approval of the local branches of the People’s Bank of China.

Article 20 Thrift institutions can transact the following financial business by approval of the People’s Bank of China and its branches: (1) selling and cashing marketable bonds such as treasury bonds, financial bonds and enterprise bonds which regard the householder individual as the object of issuance.　

Article 21 Thrift institutions can transact the business of salary paying agent, house, water and electricity rent collection agent.