China Banking Regulatory Commission and National Development and Reform Commission, Administration of Service Charges of Commercial Banks Tentative Measures

Issued: June 26 2003
Effective: October 1 2003
Applicability: Commercial bank services refer to the various renminbi and foreign exchange bank services that commercial banks provide to their customers on a fee basis (Article 4).

Main contents: Bank service charges follow government-directed charges or market-regulated charges (Article 6). Government-directed charges apply to the basic renminbi settlement services such as: the settlement of banker's bills of exchange, banker's acceptance, bank drafts and cheques; remittance; collection of payment upon entrustment; collection and payment of drafts and cheques; and other services determined by the China Banking Regulatory Commission (CBRC) and National Development and Reform Commission (NDRC). Services other than the aforementioned should follow market-regulated charges (Article 7). Government-directed charges are jointly set forth and adjusted by the CBRC and NDRC (Article 8). Market-regulated charges may be set forth and adjusted by the head office of commercial banks and branches of foreign banks on their own (Article 9). Banks may not charge work units or individuals other than the instructing party, nor charge for opening and closing of, depositing into within the same bank in the same city, and withdrawing small amounts from renminbi savings accounts (Articles 10 and 11). Commercial banks must formulate a uniform administration system and specify the scope, principles and methods of charging, etc. (Article 12). The charges must be published for 10 days at the business premises prior to their implementation (Article 14).
Related legislation: PRC Commercial Banking Law, May 10 1995, CLP 1995 No.5 p32; PRC Pricing Law, Dec 29 1997, CLP 1998 No.2 p51; PRC Administration of Foreign-funded Financial Institutions Regulations, Dec 20 2001, CLP 2002 No.1 p5 and Administrative Penalties for Illegal Pricing Acts Provisions, Aug 1 1999