BEIJING, Oct. 14 (Xinhua) – Chinese central bank, the People's Bank of China (PBOC) planned to set up an industry guarantee fund for non-banking payment institutions to foster sector development, showed an announcement posted on PBOC's website Tuesday.
PBOC drafted related management rules and started inviting public opinions for the draft management rules on Tuesday.
PBOC said in its explaining notice for the draft rules that non-banking payment institutions expanded at a fast pace and their misuses of customers' to-be-paid funds collected in advance occurred occasionally, easy to cause risks given the lack of related bailing and guarantee mechanism.
The newspaper said PBOC took the move to prevent and resolve risks for non-banking payment institutions and protect consumer rights and interests, highlighting that non-banking payment institutions boasted several hundred million clients and related customers' to-be-paid funds that they collected in advance was expected to have reached 1.5 trillion yuan.
Since January 2019, non-banking institutions have deposited full sum of their in-advance collected to-be-paid funds of customers to PBOC, which pays interests to them on a quarterly basis.
As the PBOC draft rules tell, the mulled industry guarantee fund for non-banking payment institutions will be a non-governmental fund for industry mutual assistance. (Edited by Duan Jing with Xinhua Silk Road, firstname.lastname@example.org)