The People’s Bank of China announced it will allow account holders to cancel and reverse transactions starting on December 1. The change is designed to improve payment management and fight Internet fraud, the bank said.
The bank published a notice about its plans to tighten bank account management and ensure the authenticity of all transactions.
According to the notice, as of December 1 individuals will only be allowed to open one full-authorization account for the purpose of money withdrawal and wire transfer. Customers can open more accounts with lower authorization levels if they would like to have more than one account at one bank.
Low-authorization bank accounts can be used for online payment and financing.
The notice also announced a suspension of inter-bank fees between banks in different cities for the months of January, February and March.
A spokesman for People’s Bank of China said a high percentage of fraud complains are related to transfers between personal accounts, making stronger account management a necessity for China’s banks. In addition, it helps banks to sweep out redundant accounts.
The notice also stipulates that the bank retains the right to reject an open account when it lacks a clients’ personal information. Companies tagged as “dishonest” in the national corporate information system will be barred from opening new accounts.
Accounts with no transaction records within six months will be temporarily frozen when the new policy take effect.
The bank is also targeting fraudulent ATMs that only offer an English interface. ATMs operating in an English interface will be required to play vocal hints about key terms such as “account transfer” or “fund transfer” in Chinese. The ATM system itself will also provide fraud alerts to clients, the bank said.
The notice bans the purchase of POS systems on the Web and threatens to immediately disable unauthorized POS systems.