All commercial banks, rural credit cooperatives and other institutions with physical outlets must handle RMB cash deposit and withdrawal business——
Draw the bottom line for RMB cash business
Our reporter Xu Peiyu
"People's Daily Overseas Edition" (page 04 on February 24, 2022)
Not long ago, Beijing Zhongguancun Bank and Liaoning Zhenxing Bank respectively announced that they would suspend cash business in the near future, arousing widespread concern in the society.
On February 21, the People's Bank of China and the China Banking and Insurance Regulatory Commission jointly held a symposium on the work of RMB cash services in banking financial institutions, re-emphasizing the importance of RMB cash and drawing a bottom line for the handling of RMB cash business.
The relevant person in charge of the central bank pointed out that RMB cash is the legal tender of the country, cash service is the most basic and fundamental financial service, and cash investment, purchase and storage is the most basic business of banking financial institutions. It plays an important role in maintaining the stability of the monetary and financial system.
Commercial banks and rural credit cooperatives with physical outlets must handle RMB cash deposit and withdrawal business.
All financial institutions shall not suspend the RMB cash deposit and withdrawal business on the grounds of business transformation and upgrading, less cash business, cost control, and business management risk reduction.
In recent years, with the rapid development of non-cash payment, especially mobile payment, many people have become accustomed to go out without physical cash.
But the People's Bank of China data show that the current demand for cash remains strong.
As of the end of 2021, China's cash in circulation (M0) was 9.08 trillion yuan, a year-on-year increase of 7.7%, continuing to maintain a steady growth momentum, with a net cash investment of 651 billion yuan throughout the year.
Among them, over-the-counter cash deposit and withdrawal is the main channel for cash services.
In the first half of 2021, the private cash business of banking financial institutions accounted for more than 90% of the customer's cash business, and the over-the-counter cash deposit and withdrawal accounted for more than 70% of the total cash deposit and withdrawal.
What are the main sources of cash needs?
According to reports, on the one hand, basic national conditions such as unbalanced urban and rural development, population structure and traditional habits determine that China still has a large demand for physical cash at this stage.
On the other hand, the number of market entities such as small and micro enterprises and individual industrial and commercial households has grown rapidly. In particular, the number of individual industrial and commercial households in China has exceeded 100 million, which has effectively stimulated the demand for operating cash.
In addition, the threshold for using cash is low, and certain groups such as small retail and certain groups such as the elderly and farmers prefer to use cash.
It was revealed at the symposium that the current overall situation of RMB cash services is good, but there are also some issues worthy of attention.
The phenomenon of refusing to accept cash still occurs in the society, the willingness of individual banking institutions to handle cash business has declined, and there is still much room for improvement in the cleanliness of RMB in circulation and small-denomination RMB services.
We must attach great importance to these new situations, new problems, and new signs, take them seriously, and properly resolve them.
The relevant person in charge of the central bank said that cash plays an irreplaceable role in maintaining the stability of the monetary and financial system.
Cash is an important basis for maintaining public confidence in bank deposits. The public can convert the equivalent value of bank deposits into cash, which helps to form stable market expectations and maintain the stability of the banking system.
Cash is not only an important part of the base currency, but also affects the currency multiplier in the process of currency derivation, which in turn affects the currency control system.
Cash is less dependent on electronic systems and is not affected by unexpected events such as system failures and power outages, and plays an important strategic role in coping with natural disasters.
Relevant experts believe that my country's commercial banks are socialist commercial banks.
On the one hand, it must conform to the general laws of banking operations, and on the other hand, it must fully reflect its social attributes.
As the main force of cash services, banking financial institutions must always adhere to the people-centered development concept, keep close to the needs of the people in financial services, coordinate economic interests and social responsibilities, and fully understand the importance of good RMB cash services. , and continuously improve the cash service capability and level.
Do a solid job of RMB cash deposit and withdrawal business. All commercial banks, rural credit cooperatives and other institutions with physical outlets must handle RMB cash deposit and withdrawal business.
Continuously strengthen the compliance management of cash services, continue to improve the cleanliness of cash in circulation, steadily promote the small-denomination RMB exchange work, and jointly build a long-term mechanism for rectifying and rejecting RMB cash, so as to promote RMB cash services to a new level.